Compaq and Silicon cancel joint development accord

Article Abstract:

Compaq breaks its research and development (R&D) agreement with Silicon Graphics Inc. The Apr 1991 pact was intended to help Compaq break Sun Microsystems Inc's stronghold on the workstation market. Compaq officials say that Silicon Graphics' technology is incompatible with Compaq's 'commercial needs.' Under the agreement Compaq bought 13 percent of Silicon Graphics for $135 million. In addition, the computer maker provided Silicon Graphics with $50 million over three years for R&D and joint product development. Despite the breakup, Compaq intends to release a workstation using Silicon's reduced-instruction-set computer (RISC) technology. For $150 million, Silicon Graphics plans to buy back the equity held by Compaq. Compaq continues to pay royalties for the Silicon technology that it uses for building workstations. The cancellation comes after the Oct 1991 ouster of Compaq CEO Rod Canion, one of the venture's main proponents.

Computer peripheral equipment, not elsewhere classified, Planning, Product development, Compaq Computer Corp., CPQ, Industrial research, Business planning, Silicon Graphics Inc., SGI, Workstations (Computers), Workstations, Research and Development, Outlook, Competition, Licensing, Cooperative Agreements, Stock

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I.B.M. gives Adstar storage unit more autonomy

Article Abstract:

IBM announces that Adstar, its information storage unit, is now a wholly owned subsidiary. Ed Zschau, a former congressman and Silicon Valley entrepreneur, was appointed Adstar CEO and chairman, as well as IBM VP. The move would allow Adstar, the world's biggest information-storage business with revenues of about $6 billion, to increase its sales to other companies. As an IBM unit, most of Adstar's sales have been to IBM. Analysts see Zschau's appointment as a plus since he is an IBM outsider and will not do things the old IBM way. They also point out that giving Adstar its autonomy is, in effect, IBM's admission that it no longer dominates the disk drive market. Adstar, as a separate legal entity, can compete more effectively with other storage companies.

Computer storage devices, Computer programming services, Management, International Business Machines Corp., IBM, Spinoffs (Corporate), Computer storage device industry, Spinoff Company, Subsidiary Company, International Business Machines Corp. ADSTAR

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Tempting new offerings in technology

Article Abstract:

Initial public offerings (IPOs) by high technology companies are once again popular with investors. The stock market crash in 1987 and the erratic performance of even the largest hi-tech companies kept investors away until the success of Network General and New Image Industries IPOs in 1989. Investment firms specializing in hi-tech IPOs are becoming more confident, but brokers claim technology remains difficult to sell to investors. Technology issues are priced at 10 to 15 times earning, about half the ratios of several years ago, and several hi-tech companies are delaying their IPO in the hopes that rates will increase.

Biological products exc. diagnostic, Analysis, High technology industry, High technology, Investments, Securities, Going public (Securities), Initial public offerings, Stock markets, column, Industry Analysis, Stock Market, Public Offerings

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