KPETERSEN@SIMTEL20.ARPA@sri-unix.UUCP (09/12/83)
From: Keith Petersen <KPETERSEN@SIMTEL20.ARPA>
The following is forwarded from a file obtained from Jud Newell,
Sysop of the Toronto RCPM.
---
THE FOLLOWING was pulled off Compuserve approximately 2pm,
Saturday, 10 Sept/83.
Many unanswered questions will remain for awhile....
a..>Osborne Owners will have support concerns, etc. Who
will andle repairs, upgrades, etc. In Canada, will this be
continued by Lanpar, Xerox, Computerland, etc?
b..>Software vendors who had software under license to
Osborne are already expressing concern.
c..>What will happen to all the support companies, that are
making goodies for the Osborne?
d..>Will those that bought the Executive ever see the 8088
upgrade?
e..>And so on.
Is this the start of the big shakeout?
We have no other information at this time. As information starts
to come in on the Sysop System, we'll keep you informed.
Jud Newell
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OSBORNE EMPLOYEES LAID OFF
HAYWARD, Calif. (AP) -- The company that pioneered the
portable computer, Osborne Computer Corp., has stopped production
and furloughed most of its work force as it struggles in the
fiercely competitive personal computer market.
"Those who live by the cutting edge of technology are doomed
to die on it.... That's part of the high-tech game," said Dave
Lorenzen, the director of customer services, after he received a
dismissal notice Friday.
The company, which was founded 2 1/2 years ago and was selling
10,000 briefcase-sized portable computers monthly at its
peak, will remain in business with small clusters of key
employees in its main divisions, said Donald Waite, vice
president for finance.
A terse company statement said development of new products,
including a kit to make the Osborne Executive computer compatible
with IBM systems, would continue.
Workers were called in to meetings Friday and told that
"as a result of the current economic environment in which the
company is operating, it has become necessary to announce,
effective immediately, a majority of the work force is being
furloughed for an indefinite period."
The company and its officials refused to say how many workers
were left on the payroll. Before the announcement, only
about 400 workers were left at its headquarters in Hayward,
across the bay from San Francisco. Last month, 200 were laid off
in Hayward, along with 89 at a production facility in Monmouth
Junction, N.J.
"We have structured ourselves to attempt to get through a very
difficult period," Waite said.
Although production lines have been stilled, "we have
adequate finished product to deal with our current needs," Waite
said.
Founder Adam Osborne "is staying on as chairman of the board
of the company. He is not going to draw a salary as an employee
of the company," Waite said.
The company's Osborne 1 computers made a big hit in the
market when they first appeared, but other companies quickly
emulated and improved upon the concept, cutting into Osborne's
sales.
The company ran into problems in trying to move from its
pioneering 26-pound Osborne 1 to the new Executive model,
according to Kenneth G. Bosomworth, president of International
Resource Development Inc. of Norwalk, Conn.
Sales of the Osborne 1 collapsed after word of the Executive
leaked out and consumers decided to wait for the new product --
and the Executive came out late. "It gave us a quarter that
wouldn't look too well in a public offering," Osborne said
recently.
Osborne himself said last month that he was seeking a
merger partner, saying small companies have "no chance of
success" in the competitive business.
Among the competitors that have entered the portable computer
market are Kaypro Corp., Grid Systems Corp., Hyperion, Gavilan
Computer Corp. and Sharp.
-----------------------------------------------------------------
AP 09/09 22:08 EDT V0618 OSBORNE LOOKING FOR MERGER
HAYWARD, Calif. (AP) -- Osborne Computer Corp., once one of
the hottest stars in the personal computer field, laid off nearly
all of its non-management workers and some executives Friday.
The company founded 2 1/2 years ago by Adam Osborne was
selling 10,000 briefcase-sized Osborne 1 computers each month at
its peak. But competitors have deeply eroded the company's market
and Osborne said last month he was looking for a merger partner.
Workers at the company's Hayward headquarters were called into
meetings with managers Friday and told that "everyone was being
laid off except for a few kept on to clean up," said Craig
Moore of Hayward, an assembler for the past year.
At least some executives also were laid off. Dave Lorenzen,
the director of customer services, said Friday he had received a
dismissal notice. "Those who live by the cutting edge of
technology are doomed to die on it ... That's part of the high
tech game," Lorenzen said.
Early last month, the company closed its production facility
in Monmouth Junction, N.J., laying off 89 workers, and laid off
200 in Hayward, which is on the east side of San Francisco Bay,
opposite the "Silicon Valley" region around San Jose.
At the time, Osborne said he hoped to find financial
assistance or a merger partner, saying there is "no chance
of success" in the competitive industry for a small company.
That earlier layoff left about 400 workers at the Hayward
plant and Friday's layoffs reportedly reduced that number to
about 100.
Elaine Padilla of Hayward, a lineman for the company, said
Osborne vice president George Carr told workers that Osborne
"hadn't filed for bankruptcy."
The company itself issued only a terse announcement and a
receptionist at the company said officials weren't available to
elaborate on it.
The statement said that the cutback "is a result of the
current economic environment in which the company is operating
... The company is continuing to pursue development of its new
products."
The company ran into problems in trying to move from its
pioneering, 26-pound Osborne 1 to the new Executive model,
according to Kenneth G. Bosomworth, president of International
Resource Development, Inc., of Norwalk, Conn.
Sales of the Osborne 1 collapsed after word of the
Executive leaked out and consumers decided to wait. And the
Executive came out late. "It gave us a quarter that wouldn't look
too well in a public offering," Osborne said recently.
The company has faced stiff competition from companies such as
Kaypro Corp., Compaq Computer Corp., Grid Systems Corp.,
Hyperion, Gavilan Computer Corp., Sharp and others, several
of whom emulated the Osborne 1 and improved upon it.
-----------------------------------------------------------------
AP 09/10 11:57 EST a0506 By C.W. MIRANKER AP Business
Writer HAYWARD, Calif. (AP) -- When Adam Osborne came up with
a bargain-priced microcomputer that fit under an airline seat,
executives began swapping briefcases for Osbornes at the rate of
10,000 a month.
Alone and omnipotent in a field it created 2 1/2 years ago,
the fledgling company quickly boasted annual revenues of $100
million. It planned to go public this past spring, selling
shares observers predicted could match the popularity of Apple's
first offering. But by late spring, those plans were quietly
shelved. The company had slipped from its pinnacle into a field
crowded with rivals bent on outsmarting Osborne.
Osborne is confident the firm will regain the lead. "We intend
to remain at the forefront of the market that we created," he
says. But analysts are waiting for results. "Adam
Osborne always felt he knew best. And sometimes he did," said
Kenneth G. Bosomworth, president of International Resource
Development Inc. in Norwalk, Conn. "But he has been lulled into
getting out of step with fast-moving trends. ... (The company's)
problems are severe ones." It was the "tricky problem" of
going from an old product to a new one that dethroned Osborne,
said Gil Juliussen, chairman of Future Computing, a market
research company in Richardson, Texas. The old product was
the Osborne 1, a 26-pound machine featuring a 5-inch video
display screen. The new one is the Executive, with more memory
and a 7-inch screen. The Executive was intended to hit the
market in mid-April. But word leaked out early and sales of the
Osborne 1 collapsed as customers decided to wait for the new
model. The cash crunch led to drastic changes: Osborne's
production facility in Monmouth Junction, N.J., was closed and
its 89 workers were furloughed, followed by 200 layoffs at
company headquarters in this east San Francisco Bay community,
leaving 400 workers. In the meantime, a host of competitors
-- Kaypro Corp., Compaq Computer Corp., Grid Systems Corp.,
Hyperion, Gavilan Computer Corp., Sharp and others -- had jumped
into the market, some offering bigger screens and more memory,
others compatibility with International Business Machine's
personal computer. In a competitive industry selling half a
million portables or more a year, firms are prey to obsolescence.
A key to keeping up is money, something in short supply since
Osborne's stock offering fell through. It has attracted $9
million in private financing since spring and is looking for
more, perhaps from another company. "Once we complete our
private financing, we are set to have a very successful coming
year," Osborne said.
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#: 58733 Sec. 1 - Members Sb: #OSBORNE DEAD!!! 09-Sep-
83 21:11:08 Fm: David Grenewetzki 70235,1346 To: All Osborne
Users
Well, fellow Osborne users, the other foot fell at OCC today.
The remaining skeleton crew was reduced 75% and sent home on a
furlough basis -- whatever that means It came as a complete
surprise to everyone -- only about forty people left in the
company. Don't try to call since Field Service and Customer
Service are gone. Bad news for us users and for software
developers (I have three software packages under license to
them!). There is no joy in Hayward...Dave
#: 58769 Sec. 1 - Members Sb: #58733-OSBORNE DEAD!!!
10-Sep-83 03:09:08 Fm: Jon Edwards 76703,242 To: David
Grenewetzki 70235,1346
If OCC is gone, it's only right that taps be played all across
computerland. For it was the Osborne that for many of us that
opened the gate and in its important way changed our lives. There
can be no joy in Hayward or elsewhere....
#: 58796 Sec. 0 - General Sb: IT'S OFFICIAL 10-Sep-83
10:02:26 Fm: Stan Berman 70210,460 To: ALL
Hayward, CA. Sept. 9 (AP)
The Osborne Computer Corporation, once one of the hottest stars
in the personal computer field, laid off nearly all its
nonmanagement workers and some executives today. Workers at the
company's Hayward headquarters were called into meetings with
managers and told that "everyone was being laid off except for a
few kept on to clean up." Some executives were also laid off.
Dave Lorenzen, director of customer services, said he had
received a dismissal notice. "Those who live by the cutting edge
of technology are doomed to die by it," Mr. Lorenzen said.
Well, I'd STILL buy an Executive for $900.
#: 58805 Sec. 1 - Members Sb: #58733-OSBORNE DEAD!!!
10-Sep-83 13:21:10 Fm: Bill Stockwell 70070,320 To: David
Grenewetzki 70235,1346
Bryan Eggers tells us (on the Mnet80 and QSD sigs) that OSBORNE
'furloughed' all 400+ employees, and filed for bankruptcy... Bill
#: 42372 Sec. 0 - General Sb: #OSBORNE Bites Dust 09-
Sep-83 21:21:29 Fm: Bryan Eggers 76703,275 To: All
In Hayward, California, today all 400+ employees of OSBORNE
were "furloughed". An inside source stated that the company filed
bankruptcy today. To me, that dumb thing always looked more
like a walkie-talkie than a computer anyway. Bryan
#: 42379 Sec. 0 - General Sb: #42372-#OSBORNE Bites Dust
09-Sep-83 23:01:09 Fm: L.J. Kutten 70655,376 To: Bryan Eggers
76703,275 (X)
You got be kidding. LJK
#: 42385 Sec. 0 - General Sb: #42379-#OSBORNE Bites Dust
10-Sep-83 01:03:35 Fm: Bryan Eggers 76703,275 To: L.J. Kutten
70655,376 (X)
Nope, absolutely serious. They are past history.
Bryan
#: 42386 Sec. 0 - General Sb: #42385-#OSBORNE Bites Dust
10-Sep-83 01:22:50 Fm: L.J. Kutten 70655,376 To: Bryan Eggers
76703,275 (X)
EXCEPT THEY DID NOT FILE FOR BANKRUPTCY ACCORDING TO THE AP.
#: 42397 Sec. 0 - General Sb: #42386-OSBORNE Bites Dust
10-Sep-83 11:34:13 Fm: Bryan Eggers 76703,275 To: L.J. Kutten
70655,376 (X)
AP does not know everything, LJ. Six weeks ago a company that was
building certain sub-assemblies for OSBORNE cancelled all
outstanding orders for components, saying that their customer
(OSBORNE) was having "severe problems". My source says they have
no way of paying their outstanding bills. And, after laying off
all the employees, I'd say that you'll very soon hear that I was
correct about the bankruptcy. I heard it was filed yesterday.
Bryan
--end--
-------CCVAX.revc@nosc@sri-unix.UUCP (09/20/83)
From: Bob Van Cleef <CCVAX.revc@nosc>
Just to keep the fingers pounding at the keyboards, I was told
by a someone from a third party maintenance organization
that they had over 100 Executive-II upgrade boards IN STOCK, with
orders not to distribute them until November???
Bob Van Cleef
uucp : {decvax || philabs}!sdcsvax!nosc!revc
arpa : revc@nosc
CompuServe : 71565,533POURNE@mit-mc@sri-unix.UUCP (09/21/83)
From: Jerry E. Pournelle <POURNE@mit-mc> to the best of my knowledge, the boards are designed and 100 exist; but they are not reeady for installation, and I think were never delivered to Osborne. Whether the Executive II upgrade will ever be available is a matter for interesting speculation. I expect one might make a little change doing O-1 double density conversaions; must be a lot of single-density O-1's out there.
POURNE%mit-mc@sri-unix.UUCP (09/25/83)
From: Jerry E. Pournelle <POURNE@mit-mc> 250 copies without components of the 8086 Osborne Executive Board exist; whether they were deliverd to Osborne I don't know. They were expensive boards. Looked good, but my spies only saw them, not with componenets or working. I am told that service for old Osbornes will remain available; there are enough of them that it is owrthwile for service organizations to handle them. The company owesd ~45 million dollars; no small sum