cccdcga@prism.gatech.EDU (Glen Alexander) (04/18/89)
CONTROL DATA ANNOUNCES A SERIES OF ACTIONS TO IMPROVE PROFITABILITY MINNEAPOLIS, April 17, 1989 -- Control Data Corporation today announced a series of actions that will improve its profitability. The actions include the discontinuance of ETA Systems (ETA), the Company's supercomputer business, the streamlining of its CYBER mainframe business, reducing the size of the corporate staff, and a temporary realignment of its bank financing agreements. The actions will result in restructuring charges of approximately $490 million and a workforce reduction of approximately 3,100 employees. Of the estimated charges, $350 million is associated with the discontinuance of ETA. Actual charges will be recorded in the second quarter. In announcing the actions, Robert M. Price, Control Data's chairman and chief executive officer, said, "By eliminating the ongoing losses in supercomputers and streamlining the computer systems business, the Company will be able to focus its energies on providing CYBER products and services to meet the needs of its customers. "At the same time," he said, "we will build on our strengths in the government systems business, the Imprimis Technology data storage business, and continue to move aggressively in Control Data's profitable and growing services businesses such as Arbitron, Micrognosis and Energy Management Systems." Price said that the Company's actions should result in a profitable second half of 1989 and "set the stage for sustained and growing profitability in 1990 and beyond." The Company said that while ETA was a technological success, the operation sustained significant losses and was not expected to be profitable in the near future. In 1988, the supercomputer business had operating losses of approximately $100 million. Control Data will continue to support its current ETA customers, Price explained. In addition, the Company is evaluating how selective parts of the ETA technology can be used in future products to enhance the performance of the upper-end CYBER mainframes. "In disposing of the ETA assets and in licensing ETA technology," Price said, "every effort will be made to achieve the maximum benefit, taking into account the continuing needs of existing customers and the value of the proprietary technology involved." Control Data will focus its computer systems business on the needs of its current customer base and specific segments of the engineering, scientific and information markets where it has significant strengths for future growth. The Company said that this will allow it to increase the value-added content of its CYBER mainframes to serve its customers better, while substantially improving the financial performance of the CYBER business. Control Data said that an agreement has been reached which temporarily modifies the earnings and net worth tests under its current bank agreement. The interim bank arrangement, which is valid through May 31, 1989, limits borrowings to $30 million and the letter of credit facility to levels currently outstanding of $105 million. This facility plus current cash balances are adequate to meet the Company's immediate needs. The cash requirements of the Company's restructuring actions are significantly less than the charges against the results of operations and will occur over time. However, they will require financing beyond that available under the current agreement. The Company has begun discussions for a new financing arrangement which, together with operating cash flows and asset sales, is expected to satisfy longer-term needs. In looking to the future, Price said, "We are building a new Control Data based on the concept of using computers to solve important and complex problems." Price said that despite the difficulties of the past three years, Control Data has made excellent progress in services, especially in the area of application-specific systems integration. "Revenues from such businesses have nearly doubled during that time," he said. "Micrognosis revenues, for example, have grown 40 percent on average over each of the past five years. And, last year, the Company's Government Systems group received its first major systems integration contract with the award of the U.S. Air Force's Advanced Tactical Air Reconnaissance System." Other services businesses continue to grow as well, Price said. Business Management Services has rapidly expanded its customer bases for tax filing and human resources management systems. The acquisition of SAMI in 1987 strengthened the position of Arbitron Ratings in marketing information services. "The potential of all these businesses is such that they should continue to see excellent growth in revenues and profits," Price said. "Today's announcement is a declaration that Control Data is committed to realizing that potential and achieving our stated goal of sustained profitability." - 0 - -- Glen Alexander Control Data Corporation, Atlanta Georgia, 30328 uucp: ...!{allegra,amd,hplabs,seismo,ut-ngp}!gatech!prism!cccdcga ARPA: cccdcga@prism.gatech.edu
rbthomas@athos.rutgers.edu (Rick Thomas) (04/18/89)
Press Release 17 April 1989 The John von Neumann National Supercomputer Center (JvNC) today acknowledged the announcement by Control Data Corporation of the discontinuance of its supercomputer business, ETA Systems, Inc. "Naturally, we are disappointed with the announcement," said Dr. Doyle Knight, President of the Consortium for Scientific Computing and Director of the JvNC. "However, the JvNC will continue to support its more than 1300 academic and industrial users with the ETA10 and CYBER 205 supercomputers currently in operation at the Center. Control Data Corporation has indicated that it will continue to support its current ETA customers," Knight added, "and therefore, the JvNC remains fully operational and capable of supporting the research needs of its national community of academic and industrial scientists." As a result of the Control Data Corporation announcement, the JvNC will work closely with the National Science Foundation to revise its long term program plan for supercomputer systems. "We serve a large national community of supercomputer users, and our first commitment will be to continue to provide them with leading edge supercomputing technology," said Dr. Bruce Ekstrand, Chairman of the Board of Trustees of the Consortium for Scientific Computing and Vice Chancellor for Academic Affairs at the University of Colorado. "We will have to modify our long range plan for hardware, but our overall mission remains unchanged. The JvNC has provided outstanding service and has made significant contributions to software development, education, training, technology transfer, and science. The announcement by Control Data Corporation will simply require evaluation of other vendors for future supercomputer systems at the JvNC." The JvNC currently operates four supercomputers: an eight-processor ETA10, a four-processor ETA10, and two CYBER 205s. Major research projects are supported by these systems in a wide range of scientific disciplines including biology, chemistry, physics, engineering and mathematics. "There is a great amount of exciting research being performed on the JvNC super- computers," said Knight. "For example, Prof. Juri Toomre of the University of Colorado is investigating the nature of solar turbulence using the ETA10. This work has provided new insights into the mechanics of solar activity. Prof. Ronald Levy of Rutgers University utilizes the ETA10 to explore the structure and dynamics of biopolymers in solution, leading to improved knowledge of protein structure, which is critical to the design of new drugs. Established in 1985, the JvNC is funded by the National Science Foundation and the New Jersey Commission on Science and Technology. The JvNC is managed by the Consortium for Scientific Computing, an organization of thirteen academic research institutions including the University of Arizona, Brown University, University of Colorado, Columbia University, Harvard University, Institute for Advanced Study, Massachusetts Institute of Technology, New York University, Pennsylvania State University, University of Pennsylvania, Princeton University, University of Rochester and Rutgers University -- The State University of New Jersey. * For further information, contact Dr. Doyle Knight, President, Consortium for Scientific Computing, the John von Neumann National Supercomputer Center, -- Rick Thomas uucp: {ames, cbosgd, harvard, moss, seismo}!rutgers!caip.rutgers.edu!rbthomas arpa: rbthomas@CAIP.RUTGERS.EDU
beres@cadnetix.COM (04/18/89)
Nice boost to NEC's efforts, I'd say. Just out of curiousity, what U.S., Japanese and European companies are in the supercomputer biz: Company Country Model Benchmarket -------------------------------------------------------------------------- Cray US X/MP, Y/MP, II Current US top of line Cray US III (Q3 '90) 6 ns cycle, GaAs NEC/Honeywell Japan/US SX series (Q3 '90) 22 GFlops, 3 ns cycle Fujitsu Japan VP2000 series 4 GFlops, uniprocessor Fujitsu/Siemens Japan/Euro VP2000 series ('90) 16 GFlops, 4 processor ETA US (sayonara) ETA-10 IBM/Steven Chen US In development Hitachi/NAS/Comparex Info. Systeme Japan/US/FRG ?? <feel free to correct me or fill in others; be sure to include as much info on models/MFlops to keep this somewhat architectural. also keep it to supercomputer/minisuper class> I'll keep a summary of responses (via mail, pref.) and post the lot in a week or so. It'll be interesting to see who is doing what and where it will be happening. Tim ------>MY SOAPBOX (I speak for myself) NFS server george_bush not responding still trying Tim Beres beres@cadnetix.com {uunet,boulder,nbires}!cadnetix!beres
mjt@super.ORG (Michael J. Tighe) (04/21/89)
In article <38856@bbn.COM> slackey@BBN.COM (Stan Lackey) writes: > >ETA didn't know how to sell supercomputers. It's a hard thing to do. They didn't know how to build them either (hardware + software). Yes, it is very hard. But there were many design flaws that should have been corrected BEFORE they even built a prototype machine. And for software, there was no design, just a quick port Unix from a PDP-11 and a few utilities. -- ------------- Michael Tighe internet: mjt@super.org uunet: ...!uunet!super!mjt
mjt@super.ORG (Michael J. Tighe) (04/21/89)
In article <16626@oberon.USC.EDU> gshippen@pollux.usc.edu (Gregory Shippen) writes: >Now that I had my politicoeconomic say, what does everybody think about this >action? Is this just a matter of bad management/sales as the HEP apparently >suffered from or was the ETA machine just another mediocre machine that did >not stand a chance at making ETA profitable any time soon as CDC claims? >My understanding is that while the ETA machines architecture was nothing new >(just another CYBER xxx right?) the engineering and packaging was a legitimate >progression of the state of the art. Is this so? (Eugene do you still read >comp.arch?). The ETA machine had many problems, both hardware and software. The project probably should have been cancelled years ago. It was over budget and behind schedule. The architecture was nothing really unusual, as far as I can recall. The chips were made of CMOS, whereas the Cray Y-MP is ECL. Some problems that I noticed included the following: The air-cooled models were very loud. You could not be in the room with one without suffering some hearing loss. The ventilation system blew air out the side hitting you in the face if you walked by. The CPU's and memory were deep inside the cabinet. This increased the time and complexity to replace one (which was all too often; there were many failures) when there was a failure. For the LN models, you had to wait hours for the temperature to rise before you could remove them. I also heard that the some of the CPU boards on the LN models started to crack after long exposure to the LN. On the multiple CPU models (at least the one I used), the CPU's were distinct nodes. There was no multiprocessing like on a Cray X-MP or Convex C2xx. In fact, the CPU's had different host names and were connected by network. Not exactly tightly coupled. As for software, ETA used regular System V. That's nice for some, but I like the BSD enhancements and so do a lot of others. (See this month's "Communications of the ACM" interview with Steve Job's; he almost made this same mistake with his NeXT machine, fortunately he talked about software with some of his potential customers first and was put back on track. If ETA had done the same...) Compilers and editors were also lacking. The Fortran compiler could vectorize, but it could not parallelize code. The C compiler could do neither. This is just a short list. I am sure others can add to it, but the bottom line was the machine just didn't cut it. I didn't mean this to be so negative, but that's the way it is. -- ------------- Michael Tighe internet: mjt@super.org uunet: ...!uunet!super!mjt