Stardent Computer to close, becoming one of largest venture capital failures

Article Abstract:

Stardent Computer Inc's closure represents the second most costly venture capital-backed failure in the computer industry for which Kubota Corp invested over $55 million. Stardent produces high performance computers for engineers and was the result of a merger between Stellar Computer Inc and Ardent Computer Corp in 1989. The merger raised $168 million, but suffered from management conflicts. cultural disparities and technological problems that made it impossible to develop a new computer line that was compatible with each company's prior products. Stardent earned $40 million in sales during 1990; the company is spinning off selected operations and preparing to shut down. Kubota Pacific Computer Inc will take over Stardent's Titan line of computers. Stardent must still sell its Vistra product line; some employees are creating a company that will offer support services for the Vistra workstations. An additional successor company called AVS Inc is also being formed.

Electronic computers, Investments, Venture capital, Business planning, Bankruptcy, Financial Stability, Stardent Computer Inc., Kubota Computer Inc.

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Dynamics Research says net rose 20% in fourth quarter

Article Abstract:

Executives of Dynamics Research Corp expect the company to report a 4th qtr 1992 net income of $1.7 million, or 33 or 34 cents per share, up 20 percent from the 4th qtr 1991 net income of $1.4 million, or 26 cents per share. Dynamics Research expects to report net income for all of 1992 was $3.9 million, or 75 or 76 cents per share, up 8 percent from 1991 net income of $3.6 million, or 67 cents per share. Annual revenue rose from $97.7 million to $102 million, a increase of 4.4 percent. Digital Research makes computerized systems for the Pentagon. Most of the company's revenue come from a few large contracts. Only the contract to manage engineering specifications at Hanscom Air Force Base might be at risk, says Digital Research Pres and CEO Albert Rand. That contract generated $15 million in revenue in 1992.

Prepackaged software, Profits, Defense contracts, Increase, Profit, Defense Contract, Financial Report, Annual Report, Digital Research Inc., Fourth Quarter

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