DATAMATION

awrtord Uoivercfty Lfcrw*-Dept. of -facial Cdtoctons

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AHEAD OF THE MARKET

A new multi-station data input preparation system (key-board to disc to tape) has been announced by Honey-well EDP; this is the first such system to be producedby a major computer manufacturer. The H-5500 systemallows as many as 64 operators to simultaneously en-code data on a reel of mag tape. Input data is polledby the system's processor, stored on a disc, and re-corded on magnetic tape for input into the main com-puter. All subsystems of the 5500 — cpu, keyboard, discdrive, disc pack,

software,

and vacuum tape drive —are made by Honeywell. The unit will lease for $2,800-

-3,800/month

or sell for

$150K.

First deliveries arescheduled for January, 1971.

Honeywell entered the key-to-tape market in 1968 witha single station Keytape unit. Effective April 1, the dataproducts division has announced price increases for Key-tape; rental increases will amount to nearly 4%.

After a disappointing second

half,

Control Data an-nounced plans to reduce expenses in all areas of itsoperation: cut back personnel, avoid new construction,consolidate some divisions, cancel or delay some majornew programs, and minimize capital equipment expen-ditures. Blaming tight money, reduced government bud-gets and inflation, the company said it was particularlyhard hit in the large computer area. Year-end statements,released last month, showed net earnings of the com-pany — without subsidiary Commercial Credit —to be

$18.4

million. Commercial Credit added

$34.8

million,bringing the net earnings to

$53.3

million, an increaseover 1968's net of

$44

million — but an increase dueto a boost of

$9

million in net from Commercial Credit.The rest of the company gained only a little over

$200K

in '69.

Due to a lack of orders, Docutel has suspended produc-tion operations of its computerized baggage handlingsystem for airlines; marketing efforts, however, will con-tinue. To lessen the financial strains of developing thesystem in the first place, the company is now negoti-

ating with Recognition Terminals, a division of Recogni-tion Equipment, for a plan under which that divisionwould manufacture currency dispensers for Docutel.

Price reductions: Stromberg DatagraphiX is cutting itsstandard lease prices for the 4060 micromation graphicrecorder by

$700

to $6,920/ month . . . InterAccess Corp.has announced 20-50% drops in time-sharing pricesretroactive to Jan. 1; the cut is in cpu charges— therate for core memory use has been increased.

A few disturbing phone calls in recent weeks have alertedus to the fact that some people have been calling man-ufacturers and users and identifying themselves as beingwith Datamation. In some cases, these phonies have beenrequesting information in exchange for free publicity inthe magazine— something no Datamation editor woulddo. In other instances, the information solicited is notthe type normally requested by an editor, and thereforesuspect. There is, unfortunately, nothing we can do ex-cept to warn our readers and advertisers.

Marketing: American Science & Engineering and InputOutput Computer Services have joined forces to developsoftware (IOCS) and design and integrate hardware com-ponents (AS&E) of Digital Equipment Corp.'s line of mini-computers . . . Computer Sciences and the AustralianMutual Provident Society and the Anglo American Corp.of South Africa have banded together to provide com-puter time-sharing and technical services in the lattertwo countries . . . Atlantic Technology Corp. has con-tracted Redmar Assoc, to market its data display termi-nals and custom display devices . . . Credit Systems, Inc.,will market the Credit-Chek system for Marketing Auto-mation, Inc. . . . Data Automation Services is marketingthe Electronic Payroll Information Collection System forWorld Computer Corp. . . .Mergers and acquisitions: The merger of Itel Corp. andIntercontinental Systems will become effective April 1.IS lost

$2.6

million in 1969; Itel is 40% owned by

5«^__=_) MTJ_miMIM F _f, ll £==_ M.

-^^cutivenewsletter

APRIL, 1970 " VOLUME 8, NUMBER 4

American Express Corp. . . . Graphic Controls and BoltBeranek & Newman called off their merger suddenly; noreasons were given . . . Systems General is acquiring twocompanies: Dealers Exchange of Los Angeles, and Elec-tomec Computing & Technical

Services,

Santa Clara . . .Tymshare and Dial-Data plan to merge; T. J. O'Rourke,president of Tymshare, claims this union will result inthe third largest time-sharing company in the country. . . Tracor Computing Corp. acquired H. J. Gruy & Assoc,and Gruy Management

Services,

both of Dallas.

Expansions: Market Development Corp., St. Louis, hasformed a new dp division, Computerware Data Services. . . At Data General: a subsidiary computer company,Datagen of

Canada,

Ltd.; Juan Monico will head the newfirm. The company has also announced plans to opena printed circuit board facility in Hudson, Mass. . . .Engineering Computer International has opened an ECIcomputer service center in Cambridge . . . Computer Sci-ences formally opened its facilities in Silver Spring, Md.,which will house the eastern region of the systems divi-sion and the Washington HQ of the information networkdivision . . . Transnet Corp. is offering a new servicewhich evaluates the investment merit of warrants rela-tive to the associated common stock via local terminalshooked to a central time-sharing computer. The com-pany is located in Red Bank, N.J. . . . Tracor has formedTracor Data Systems to design, manufacture and marketcomputer peripheral products and specialized computersystems. The division is headed by Lloyd Hubbard, aformer IBM man who "was instrumental in the instal-lation of the first IBM computer system" . . . Data Power,a NY-based franchised computer services operation, pre-dicts it will have 38 computer service franchises soldwithin the next six months . . . Univac's dp division hasrestructured its field marketing operation into two sec-tions, east and west; Richard Mock will head the easterndivision and John Butler will be responsible for thewestern half . . . Tymshare has formed an internationaldevelopment group to handle extension of the company'stime-sharing business and services outside the U.S. . . .GE's time-sharing services have entered the South Amer-ican market with introduction of the service in BuenosAires . . . Timeshare Network Corp. is extending its serv-ices to Massachusetts,

Connecticut,

N.Y., N.J., Pennsyl-vania, Delaware and Washington,

D.C.,

and plans toinclude service to Dallas, Houston and Galveston in thenear future . . . Delta Data Systems has formed a bankservices group; it will be headed by Robert Vitacco . . .Data Products has opened an office for its systems divi-sion in Paris; Frederick L. Nash was appointed generalmanager of western European operations . . . Applied Dy-namics has selected

Orlando,

Fla., as the site for a newsales office to be under the direction of William H. Mar-tin, Jr. . . . Control Data has spread its Cybernet serviceto ten more cities in the U.S.:

Seattle,

San Francisco,

Oakland,

Phoenix,

Omaha,

Valley Forge,

Hartford,

LongIsland, Houston, and Orange County . . . Computer Com-munications has opened a Pacific Northwest office inSan Francisco, and named William Templeton as areasales manager . . .

Curtain lines: System Development Corp. is discontinuingtime-sharing operations at two datacenter locations:

Santa Monica and Falls

Church,

Va. . . . Printing IndustryComputer Assoc, has changed its name to PICA DataSystems . . . Vogue Instrument Corp., always an easycompany name to identify, has now become GeneralPeripheral Corp. . . . Data Dynamics is now ElectronicGraphics . . .RECENT AND RANDOM

Once again, it is the time of year for AT&T's novella,"The World's Telephones," to bring us, via 24 pagesof international statistics, subtle insights into how muchwe talk. Always interesting, this year's volume containsa revealing bit of information casually hidden in columnsof figures and yet possibly a key to our methods of for-eign relations: Last year, 6.189,000 long distance callswere made in or from the U.S. South Viet Nam made449. Don't call us . . .

WHERE THE MONEY IS

Predictions: Dearborn Computer, despite a decline in netincome for the first quarter of fiscal '70, has projectedearnings for this year to top last year's per-share netof

$2.11

. . . Computest Corp. is forecasting net earningsof 900/share for the year to end in May. This compareswith '69 earnings of 530 /share.

Stock splits:

NCR,

2-for-l . .. Hewlett-Packard, 2 fori . .

Dividends: Honeywell,

32.50/share,

paid in March...

AT&T,

650

/share,

quarterly, paid April 1 . . . AutomationTechnology, a 100% stock dividend, paid in March . . .Bunker-Ramo, 37.50 /quarterly dividend . . . Sperry Rand,12.50/ quarterly dividend, to be paid in May . . . Milgo,

a 100% stock distribution, payable April 13 to share-holders on record as of March 20 . . .

Stock offerings: A

$10.5

million offering of 7% con-vertible debentures from Itek was sold out the day itreached the market at a

$100

bid . . . Memorex hasregistered a

$75

million public offering of convertibledebentures, due 1990;

Smith,

Barney & Co. and Blyth&

Co.,

underwriters . . . Compu-Tech Schools of Americais planning a 200,000-share offering of common stock;underwriters, Mayflower Securities Co. . . . Bunker-Ramowill offer

$20

million worth of convertible debentures;Allen & Co. and Hornblower & Weeks-Hemphill, Noyes,underwriters . . . Data Products'

$15

million public of-fering of 5%% convertible debentures, due 1995, soldout at a price of

$100

. . . Data Synectics has registereda 250,000-share public offering; Robert Cea &

Co.,

underwriters . . . Honeywell will offer 600.000 commonshares in U.S. and in Europe for a total current marketvalue of

$82.65

million; Eastman Dillon, and UnionSecurities &

Co.,

underwriters . . . Compiler Systems willoffer 250.000 shares in its initial public offering of com-mon stock; Philips, Appel & Walden, underwriters . . .

Infoton,

Inc. has arranged a private placement of equityof

$1

million through Paine Webber Jackson & Curtis . . .First quarter reports: Time-Sharing Terminals earned 60/

share in the first three months of FY'69; previously, inits first year of operation, the company lost 270 /share. . . Leasco Data Processing Equipment Corp. made 620/share, down from 820 /share in the comparable periodlast year . . . Bresnahan Computer Corp. reported earn-ings of 90 /share, up from 50 /share last year . . . MAIlost

$1.1

million in the first quarter; last year's losswas

$317K

. . . Milgo earned

850/share,

up from 320/share . . . Hewlett-Packard picked up 440

/share,

an in-crease from last year's 420 /share ... Computer Re-sources reported earnings of

100/share,

up from 70/share ... Certron Corp. made 200/share in the firstthree months, compared with 110/share last year . . .Computer Usage Co. lost 580

/share,

dropping from aloss of 220 /share in '69 . . .Six-month reports: Data-Design Labs earned 120

/share,

up from 110/share in the first half of last year. ..Scam Instrument made 210

/share,

a drop from lastyear's 440 /share ... Computer Terminal Corp. earned$125K, no comparable figures given . . . Data Trendsearned 210

/share,

a boost from last year's loss of

$473K

. . . Graham Magnetics picked up

200/share,

upfrom a loss of

$11.

9K last year . . . Datatron earned120

/share,

a jump from the comparable period's 60/share . . . Autotech made 490

/share,

no comparable fig-ures given . . . CalComp earned

100/share,

down fromlast year's first half net of 220 /share ... PrincetonTime-Sharing

Services,

a loss of 370

/share,

somewhatbetter than last year's loss of 880/share . . . HudsonLeasing Corp., revenues amounting to 790

/share,

upfrom last year's 580 /share . . .The Computer Exchange,earnings of

90/share,

an increase from 60/share...Graphic

Sciences,

a loss of

$2.6

million, a slump fromlast year's loss of

$34K

. . . Mohawk Data

Sciences,

netper-share earnings of 750. up from 460 . . .Nine-month reports: Digitronics, 150/share. down fromearnings of 250 /share in the first three quarters of lastyear . . . Astrodata, a loss of 340

/share,

a drop from aloss of 30 /share last year . . .

Informatics,

a loss of

$1.13/share.

down from gains of 250/share last year. . . Sykes Datatronics, a loss of

$241

K in the thirdquarter, no comparable figures given . . . Computer In-vesters Group, per-share earnings of 320 up from 230in the same period a year ago . . . Ampex. gains of

$1.06

/share,

up from 970 /share in the previous year . . .Gerber Scientific Instrument, 530 /share earnings, upfrom 240 /share in FY'69 . . . Sterling Computer Systems,aftertax earnings of 190

/share,

an increase from 140/share . . .

Annual reports: Interdata reported a net income of 160/share in FY'69, a considerable increase over '68's lossof 550 /share . . . Diebold Computer Leasing earned 350/share last year, up from '68's net of 280 /share...Honeywell made

$4.15/share

in 1969, a 24% increasefrom the previous year . . . Canoga Industries posteda yearly loss of $2.75/share, a drop from '68 earn-ings of 360 /share . . Programming Methods made 480/share last year, up from 360 /share in '68 . . . Tracor re-ported annual earnings of $1.25/share, compared with

$1.22/share

the year before ... NCR earned

$4.11/

share, an increase over

$3.67

/share in '68 . . . Bunker-

Ramo netted 530 /share in FY'69, a boost from '68earnings of 350 /share . . . Comress doubled its income:80 /share earnings in '69, compared with 40 /share in'68 . . . Applied Data Research dropped earnings to 110/share, down from 390/share the previous year . . . SYSAssociates, which lost 820 /share in '68, posted earn-ings of 150/share for FY'69 ... Electronic Associateslost 860/share last year: in '68, the company made100/share . . .JUST SIGNED

Datacraft Corp. has received an order from RecognitionEquipment, Inc., for 60 computer systems valued atapproximately

$3.4

million. . Burroughs will deliver

$1.7

million worth of TCSOO terminals to

Comserv,

a Phila-delphia computer utility . . . Inventory Management Sys-tems has given a follow-on contract for

$1.5

million toDigital Development Corp. for its digital rotating memorysystems . . . Over $384,000 worth of mag tape-cassetterecorders have been ordered from Mobark InstrumentsCorp. from Eldorado Electrodata Corp. . . . Optical Scan-ning Corp. has rented six OpScan 70 systems and one100 DM system to the Social Security Administrationunder a

$250

000 agreement . . . Management SystemsCorp. has opened a new Dallas data center and simul-taneously signed a

$500K

contract with Teledata Sys-tems for computer time and facilities . . . The City andCounty of San Francisco has purchased over

$400K

ofmemories from Ampex . . .

Also at Ampex: Data Products has ordered

$300K

worthof digital tape drives, and Systems Engineering Labs isbuying

$450K

of drives and memory stacks . . . UnionCarbide Corp.'s Nuclear Div. will pay Systems Engineer-ing Labs

$100K

for an 8108 computer system, peri-pherals and a multiplexer . . . Dataline, Inc., has receiveda

$100K

contract from Nu-Concept Computer Co. to de-sign and develop three preproduction models of a cardprinter and three models of a line printer . . .

AT NEW DESKS

Jack MacDonald has been appointed national sales man-ager for Data Computing . . . University Computing'sComputer Utility Network has promoted Robert Jacobsto vp, marketing services. Joseph Ganley was recentlyappointed vp, marketing, for UCC's Graphic SystemsDiv. . . . JosephLudka has joined HFS Manufacturing Co.,Anaheim maker of disc packs, as director of marketing. . . IBM World Trade Corp. has elected C. C. Townsend,Jr., treasurer ... At Systems Engineering Labs: TheodoreSwift is now manager, advertising and sales promotion,and Richard C. Murtland is manager, product marketing,for KeyTran . . . Paul W. Mendez has been appointedsales manager at Infoton . . . Mobark Instruments Corp.has added Leonard Gilmore as director of marketing . . .Honeywell EDP has promoted Douglas Davidson to north-east regional sales director . . . Werner Frank, a founderand senior vp at Informatics, has been selected by theU.S. Dept. of Commerce to head a special U.S. trademission on behalf of the edp industry to southeast Asia

. Alexander Schobel has been appointed vp. sales, at

1

T thSykes Datatronics . . . James Huntoon has been electedvp, general manager, of BIT, Inc. . . . RCA InformationSystems has named William Friis as manager, news andinformation . . . Walter A. Levy has been elected vp, com-munications systems division, Informatics . . .Al Astorhas joined Computer Communications as technical di-rector of marketing . . . Robert J. Frederickson has beennamed marketing manager of the numerical controlssystems division, Bunker-Ramo . . . Spiras Systems hasappointed Richard A. Frederickson vp, marketing . . . Rob-ert Gault is now vp, marketing, for Information SystemsManagement Corp. . . . Fabri-Tek has chosen RichardBaker as vp, sales and marketing, memory products . . .Frank Crook will direct marketing and sales at Di/AnControls . . . Dean Willmann has joined Access Corp. asvp and manager of marketing operations . . . LawrenceGreen has been elected vp, marketing, at Computer Re-sources . . . L. Durwood Kinsey has been named directorof marketing, Computer Memory Devices . . . Applied Cy-bernetics Corp. has appointed Michael Nolan as vp anddirector of marketing . . . Roy Murray has been namedvp, marketing, at Datacraft . . . Foto-Mem has pickedJim Clark as vp, marketing . . . Dataware Marketing haschosen Fred Holzknecht as director of marketing . . .John Q. Atchley is now marketing director of DatamateComputer Systems . . . Robert B. Ring has become vpand marketing manager of Daedalus Computer Prod-ucts . . .

executivenewsletter

35 MASON ST.GREENWICH, CONN. 06830

SALES OFFICES

35 Mason St.Greenwich, Conn. 06830

112 West Haven RoadManchester, N. H. 03104

203661-5400 603 NA 5-949894 So. Los Robles Ave.Pasadena, Calif. 91101213 795-9721 or, from

205 W. Wacker Dr.Chicago, 111.60606

312 Fl 6-1026 Los Angeles, 213 681-8486260 Sheridan Ave.

Palo Alto, Calif. 94306415 321-1440

COMPLETE COVERAGE with

Datamation . . . the technical and top management

responsible for making buying decisions. This isthe main reason Datamation showed such big gains

during 1969 — gains that are continuing into 1970.

Here are some statistics from last year, in pages:

computers, 297; peripherals, 437; data communications.298; expendables, 149; software, 117; services, 100.

The grand total: 2152 pages of advertising — sentdirectly to the people who can do something about it.

CLOSING DATE FOR THE MAY ISSUE: APRIL

ZMm

The Magazine of Automatic Information HandlingOk1830 West Olympic Blvd. " Los Angeles. Calif. 90006 " 385-0474

January 3, 1967

Miss Pamela TellefsenStaff AssistantStanford UniversityStanford, California

Dear Mi ss Tel lef sen :

We have all been charmed and deeply moved by yourChristmas carols. But we agree that the time ispast when their publication would be most appropriate.

Our suggestion is that we hold them for a while, in hopesthat another Christmas season will arrive, if this isall right with you. In the meantime, if you want to makeany changes or additions let us know.

It's true, incidentally, that former English majors aresurfacing. One of them, going under the name of Dick Hill,is masquerading as a vice president at Informatics.

S i ncere ly,

D^fi .Bi I I RolphAssociate Editor

BR/wrr

F. D. THOMPSON PUBLICATIONS, INC.NEW

YORK

10017 /

CHICAGO 6060S / CLEVELAND

44113 /

MANCHESTER.

N. H. 031 04141 EAST 44TH ST. / 205 WEST WACKER DRIVE / 75 PUBLIC

SQUARE

/ 1 12 WEST HAVEN ROAD(212) MURRAY HILL 7-SIOO / (312) FINANCIAL 6-1026 / (2IS) 621-2242 / (603) NATIONAL 5-S49S

LOS ANGELES

900061830 W. OLYMPIC BLVD.

(213) 355-0474

D-camber £9, 1966

Mr. Robert B. Forest, EditorDatamationlBjo West Olympic BoulevardLos Angeles. Calif. 9000bDea1" Mr. Forest,

Sd F -igenbaura told me that he discussed with you the possibilityof printing some Christmas carols I wrote for our Christmasparty. Here they are.

Two things, it seems, deter from them. First, Christmas is pastand they're a bit stale; and second, they're full of localallusions. I can't do anything about Christmas Past, but I decidedto gloss some of the more arcane references for you.

Should you wish to print them, you may print them in whole or inpart, as you see fit, with or without learned footnotes. If youdecide to print them, I would be delighted to send you a pictureof myself, with or without wig, also as you see fit.

Sincerely,

Pamela TcliefsenStaff Assistant

enclosures