Perkin-Elmer Forms New Minicomputer Company
NEW YORK (AP) _ Perkin-Elmer Corp., which produces high-technology products but is not recognized as a leading computer-maker, announced formation Wednesday of an autonomous minicomputer company that will attempt to establish its own identity in the market.
Horace G. McDonell, chairman and chief executive officer of Perkin-Elmer, said the operation, Concurrent Computer Corp., will assume the activities and assets of the company’s Data Systems Group.
The group, formed in 1974, had been responsible for building 32-bit high- powered minicomputers and communications products. The unit reported sales of $259 million and operating profit of $24 million in the fiscal year ended July 31.
Its minicomputers generally are used in bond trading, national betting systems and simulated flight training.
″We have been trying for 10 years to be recognized as members of the computer community,″ McDonell said at a news conference in New York. ″We have come to recognize we’re considered part-timers.″
He said Perkin-Elmer owns 99 percent of Concurrent, while the new company’s management owns 1 percent and has an option to buy 9 percent over the next 10 years. Stock will eventually be offered to the public, he said, but Perkin- Elmer will retain approximately 80 percent ownership.
″As a separate company, with a singular focus and identity, we believe that Concurrent Computer Corporation will be recognized as a vital, competitive computer enterprise,″ he said.
James K. Sims, president and chief executive officer of Concurrent, said the company has 3,100 employees worldwide, manufacturing plants in New Jersey and Cork, Ireland, and sales and service locations in 60 countries. Headquarters is in Holmdel, N.J.
Analysts said Concurrent is considered a leader in parallel processing, a technology in which two or more processors are used to perform different functions in the same system, increasing overall efficiency.
Perkin-Elmer, headquartered in Norwalk, Conn., is a major world producer of analytical instruments and semiconducter processing equipment.
The company reported $14.5 million in net income, or 32 cents per share, for the quarter ended Oct. 31, compared with $13.5 million, or 30 cents per share, for the same period in 1984.
Net income totaled $82.1 million on sales of $1.3 billion for the fiscal year ended July 31, compared with $66.1 million on sales of $1.18 billion for the year-earlier period.