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- [***][10/2/84][***]
- GAVILAN BUCKLES:
- The struggling Gavilan Computer Corporation of Campbell, Ca. is officially
- out of business and will file for protection from bankruptcy this week.
- Only ten of sixty people are left to handle the legal and administrative
- problems involved in closing up shop. Two year old Gavilan owes more than
- $10 million to some 400 firms. Gavilan's biggest problem stemmed from its
- delay in marketing two portable computers; the delay allowed other portable
- computer makers to get a head-start in marketing their own products. Only
- about 1,500 of the portables were actually sold. Management intends to sell
- off remaining inventory to a third party computer repair company which could
- service the Gavilans now out there. Gavilan's chairman Manny Fernandez,
- meanwhile, has already landed a job with Dataquest of San Jose, an industry
- analysis firm.
-
- [***][10/2/84][***]
- BATTLE OF THE GIANTS:
- In a move expected to strengthen IBM's fight against AT&T, IBM is giving a
- tender offer to shareholders of Rolm Corporation in order to completely take
- over the telephone switching equipment company. IBM has offered $70 a share
- for the 77% of outstanding shares it already doesn't own. The Justice
- Department has to approve the merger, expected in two months or so. The
- takeover will cost IBM a whopping $1.27 billion dollars and even more
- interesting is that the shareholders will not be paid cash, but gain IBM
- convertible bonds, otherwise known as IBM securities, for their Rolm shares.
- Rolm has been struggling to compete against AT&T for years to penetrate
- the telephone switching systems market. Its alliance with IBM could give
- it, and IBM an edge. If approved, the IBM-Rolm merger would be the most
- expensive merger in IBM's 70 year history.
-
- [***][10/2/84][***]
- DOUBLE BLOW:
- IBM also made headlines last week by unveiling 31 software programs for the
- PC computers. The programs are designed to compete with Lotus and Ashton-
- Tate, among others, and offer spreadsheet, graphics and word processing
- functions in an integrated format. The beauty of the programs is that they
- work not only with PCs, but a variety of IBM mainframes and perform the
- most common office functions. Each of the IBM series software costs $695
- and is expected to put serious pressure on the thousands of other software
- companies competing for a share of the $2.2 billion software market. Perhaps
- related to the two big stories--software and Rolm--is the fact that IBM will
- get a new chairman on February 1, 1985. John Akers, President of IBM will
- succeed John Opel, who retires at age 60.
-
- CONTACT: D.E. UDELL
- IBM INFORMATION SYSTEMS GROUP
- RYE BROOK, NEW YORK
- 914-934-4488
-
- [***][10/2/84][***]
- K-FLAP OVER PCJR:
- An article in the September 25th issue of the "Wall Street Journal" had some
- IBM retailers nearly foaming at the mouth. The article reported that IBM
- was talking with K-Mart to distribute the PCjr in the 2,160 K-Mart stores
- nationwide. IBM's authorized dealers flooded IBM with loud complaints,
- fearing discount outlet sales of the machine would devastate them. However,
- on September 28, the "Journal" quoted an IBM executive as saying the report
- was "erroneous" and that IBM "has no plans to expand its distribution
- channels". All dealers and sales reps got that statement and are,
- naturally, relieved.
-
- [***][10/2/84][***]
- BIG MAC UPDATE:
- The 512K MacIntosh is not exactly getting red carpet treatment from large
- corporations yet, despite its increased memory and its promise to run
- business programs. Its main drawback to penetration of the business market
- seems to be three-fold. Namely, it can't be linked, reliably, to other
- Macs in a large local area network yet (Symbiotics of the U.K. has a
- networking system that "deteriorates" after 12 machines are linked), it
- doesn't have a hard disk from Apple and it doesn't link to IBM mainframes.
- However, several analysts expect some major announcements in January
- regarding these and other features. An Apple laser-printer and business
- software, at least, should be announced then. In other Apple news, look
- for the post-election issue of "Newsweek" to be virtually dominated by
- Apple ads for the MacIntosh. Apple is spending some $2 to $3 million to
- grab every inch of available advertising space in that "Newsweek" issue.
-
- [***][10/2/84][***]
- LOTUS GOES PRINT:
- As suggested by a good NEWSBYTES source several months ago, Lotus Development
- Corporation has entered the business of print publishing. Dan McMillan,
- whose accolades include being the former VP of McGraw-Hill Publishing, is
- the VP of Publishing at Lotus. As of April, a new publication he's designing
- called "Lotus" will be a monthly offering. The main thrust of the monthly
- will, of course, be Lotus software products but McMillan says he's making
- a special effort to remain objective in software reviews from other companies,
- as well as providing down-to-earth advice to micro users. He did say he's
- looking for an editor for the publication and the staff of the magazine will
- be some 30 people.
-
- CONTACT: LOTUS DEVELOPMENT CORPORATION
- CAMBRIDGE, MA.
- 617-492-7171
-
- [***][10/2/84][***]
- NEW KAYPRO 2:
- There were 2 announcements from Kaypro this week. First, the company has a
- new portable computer computer called the New Kaypro 2. Priced at $995, it's
- designed to compete with the Apple //c market, offering a disk drive
- with three times the capacity of the //c (390K expandable to 780K), a 9"
- CRT, a full keyboard, two serial ports, and a Centronics parallel printer
- port. Kaypro bluntly admits it's designed the machine for the upcoming
- "Christmas Computer Wars" but the machine won't be out on the market for
- at least a month. It's just now being produced and the only working model
- is a prototype. The second company announcement is the existence of
- "KayNet", a system which can link up to 64 Kaypro series computers.
- Licensed from Orange Compuco of Costa Mesa, Ca., KayNet's exact hardware
- components were not discussed in the press release, nor was the
- availability date.
-
- [***][10/2/84][***]
- AND ON THAT SUBJECT:
- Datapoint Corporation, long-known for its clandestine approach to linking
- its own office communication products in LANs, announced it now has hardware
- available to link IBM PC computers. Known for ARCnet, the first communication
- system to link computers in 1977, Datapoint's new PC Intelligent Network is
- capable of tying 255 minicomputers, remote computers and peripherals to one
- network. Fiber optics, coaxial cables, infrared light and adapter cards for
- each PC are included in the network, which costs $770 per machine. Datapoint
- has been slow on the uptake to capitalize on IBM's lack of its own
- PC network, and analysts suggest they're concerned that this network is a bit
- tardy to reverse the company's sagging fortunes.
-
- CONTACT: DATAPOINT CORPORATION
- SAN ANTONIO, TEXAS
-
- [***][10/2/84][***]
- CONTROL DATA PULLS THE PLUG:
- As of 1985, Control Data will stop production of the 33800 series of disk
- drives. The move comes in light of falling sales and, as reported in last
- week's NEWSBYTES, disk coating problems that led to malfunctions in the
- drives. Control Data has been selling the drives to IBM for use in its
- various computers. At this point, falling revenue from drive sales will
- cause C.D. to write off an almost $150 million loss.
-
- [***][10/2/84][***]
- FLY THE TANDEM SKIES:
- Tandem Corporation has launched an ambitious project to develop an airline
- reservation system. In partnership with Scandinavian Airlines System Group and
- a Connecticut software company, Tandem promises to have its computerized
- reservation system, called SPAR, up and flying by December of '85. In
- addition, Tandem plans to market some 22 software packages aimed at the airline
- industry. Tandem is traditionally known for "fail safe" systems which should
- give some "flyophics" a sense of security..
-
- [***][10/2/84][***]
- IN BRIEF--
-
- **** A very "inside" source tells me that COMMODORE'S new AMIGA computer will
- be on the market in January, and because of this, the pressure is on Apple
- The source says Apple is feeling rather pinched between IBM, on top, and
- Commodore on the bottom. It looks like Commodore's Amiga will sell for under
- $1,000. Where does that leave Atari's Jack Tramiel? Stay tuned. ****
-
- The S.E.C. has EDGAR up and running. EDGAR (Electronic Data Gathering,
- Analysis and Retrieval) is still in a testing phase, but promises to provide
- online information regarding the finances of at least 150 corporations.
- Users can only access it now at Security and Exchange Commission public
- hearing rooms, but it should be available worldwide by March, 1986.
-
- The SEMICONDUCTOR INDUSTRY ASSOCIATION forecasts that sales of chips will
- jump 48 percent this year, amounting to $26.3 billion in sales. "We are
- on our way to the most explosive year in the history of our industry," said
- Irwin Federman, president of Monolithic Memories, a chip-maker.
-
- COLUMBIA PICTURES is closing MYLSTAR ELECTRONICS of Northlake, Illinois.
- The subsidiary makes coin-op video games. No reason was given for the layoff.
-
- PIZZA TIME THEATER, one of the 16 companies started by Atari founder Nolan
- Bushnell, is selling 60 Chuck E. Cheese restaurants to rival ShowBiz Pizza
- Places. The deal was sealed Sept. 27. Remaining stores will either be
- sold to private owners or dissolved.
-
- AMDAHL CORPORATION plans to sell two supercomputers made by FUJITSU. This
- is an important move in light of Amdahl's falling revenues. The mainframes
- use IBM protocol but offer 38 to 76 times the processing power of IBM.
-
- MORROW INCORPORATED has cut the price of its MD3-P computer from $1,899 to
- $1,099 to take advantage of the Christmas sales season. The price slash
- extends to the Morrow letter-quality printer, which has gone from $2,349 to
- $1,399.
-
- NOLAN BUSHNELL's group Entrepreneur's Alliance held a hoedown/bash at the
- estate of Mal Padgett, publisher of the "Corporate Times" in Atherton, Ca.
- on Sept. 29. The bash featured an auction of such goodies as signed letters
- from former Governor Reagan, a 1959 MG Midget roadster, a dinner with Nolan
- himself, a week in a Maui condo, etc. etc. The non-profit group hopes to
- raise $30-$40-thousand for a new training center.
-
- [***][10/2/84][***]
- MORE ON NOLAN:
- Atari founder Nolan Bushnell came out with 8 new games last week. No, they're
- not Pac-Man or Space Invaders, in fact they have nothing to do with video or
- computers. No, these are just plain old card games called "Trivia Quiz" cards.
- They're being produced by one of Bushnell's companies, Axlon, and of course,
- are designed to capitalize on the current trivia game fad. A company spokesman
- says these are just the first of many home entertainment products we can expect
- from the new company, and are the first because they required the least amount
- of R&D development money. The questions on the cards came from contributors
- who were paid $1 for each question used. Out of 80,000 submissions, 30,000
- were used for the cards. Later products will include electronic games and
- home appliances, maybe even a computer or two, provided the cards make the
- company a little pocket money.
-
- [***][10/2/84][***]
- QUOTE OF THE WEEK:
- Don Hoefler of "Microelectronics News" on Texas Instruments recent chip-testing
- scandal: "...long the most close-mouthed, tight-lipped outfit in the industry
- obviously has its back against the wall after IBM blew the whistle on its
- test procedures...(now) T.I.'s normally taciturn flackery..(has) cut loose
- with some of the most mealy-mouthed, weasel-worded doubletalk statements
- in the company's history!"
-