Control Data to separate into two companies

Article Abstract:

Control Data Corp has announced a major restructuring that will see two independent companies result from the break-up of the corporation. Control Data Systems Inc (CDS) will control the company's computer business, consisting primarily of reselling workstations and servers manufactured by Silicon Graphics Inc, which has announced it will make a 10 percent investment in the new entity. NEC Corp, which uses Control Data as the US marketing force for its supercomputers, reports it is considering taking a 5 percent stake in CDS. Control Data Corp's information services, including the Arbitron audience-measurement service, payroll management services and systems management services, will be rolled up into a business to be known as Ceridian Corp. Control Data Corp, which has closed nearly 20 separate businesses in recent years and has not had a profitable year since 1988, will take a $400 million charge in the second quarter as a result of both the split and other restructuring costs. Control Data president and CEO Lawrence Perlman, who will fill the same posts at Ceridian, characterizes the split as providing the first growth opportunities for Control Data in ten years.

Information retrieval services, Computer integrated systems design, Computer storage devices, Corporate reorganizations, Divestiture, Ceridian Corp., Divestment, New Company, Reorganization, Control Data Corp., Control Data Systems Inc.

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Intel: supplier rising as a big competitor

Article Abstract:

Intel Corp, the dominant supplier of microprocessor chips to the microcomputer industry, is beginning to diversify into areas that compete with its customers. For FY 1989, Intel received 30 percent of its revenue from its computer systems business, in areas such as networking products and services, add-on boards, microcomputers, supercomputers, workstations, and service and support. Analysts say diversification makes sense because Intel makes the most important part of the computer. Intel's importance to microcomputers will only grow, when by 1993 the company will integrate all the parts of the CPU, excluding memory, onto one chip. Most disturbing to competitors are Intel's OEM deals, whereby it manufactures microcomputers which are sold under another company's name. Competitors fear Intel will give preferential treatment to its manufacturing division for new microprocessors.

INTC, Financial Analysis Software, Company Profile, Competition, Computer Industry, Marketing Strategy, Semiconductor Industry, Diversification

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Intel raising capacity of chip factory; a $1 billion investment in future market share

Article Abstract:

Intel Corp plans to expand its Rio Rancho, NM, microchip factory by 1.3 million square feet and create as many as 1,000 new jobs. The company's plan will cost $1 billion, the single largest investment of any US company in a chip manufacturing facility. The expansion work begins immediately and production is scheduled to begin in 1995. Intel officials say the plant is the company's first billion-dollar factory but it will not be the last. The impressive sales of Intel microprocessors is expected to trigger the need for more manufacturing facilities; another plant is forecasted to be built by late 1993 or early 1994. Intel's Rio Rancho factory is its largest. It has 2,400 employees in addition to several hundred support personnel working for suppliers.

Computer peripheral equipment, not elsewhere classified, Microprocessor, CPUs (Central processing units), Microprocessors, Manufacturing, Business planning, Facility Construction, Expansion

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