(from www.sec.gov)
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Microdyne Corp. |
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From the April 28, 1997 Washington Post
| '96 (in $ 000s) | % Change From '95 | |
| Revenue | 99,155 | (41.7) |
| Net Income | (2,944) | -- |
Description:
Microdyne's principal products are network adapter cards—specialized circuit boards that allow personal computers to link with office computer networks. The company designs, makes and sells these and other computer networking products and aerospace telemetry receivers and provides technical support services.
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Microdyne said on March 17 that it would overhaul its troubled computer networking products division, stopping shipments for three months in an attempt to end an oversupply of the products and taking a $20.5 million write-off.
Those drastic steps, along with its $2.9 million loss for fiscal 1996, reflect Microdyne's troubles in keeping up in a rapidly expanding market for networking products that is becoming increasingly dominated by larger players.
Microdyne secured the rights to use the Novell brand name on a wide range of products. But Novell also changed its distribution policies in ways that negatively affected Microdyne, including lowering the discount it gave to Microdyne for software purchases.
These changes forced Microdyne into a cost-cutting mode, including layoffs of dozens of workers. On Feb. 5 the company cut prices on a range of products, including ethernet adapter cards and switches, by 7.5 percent to 30.3 percent.
In July the company decided not to proceed with its planned acquisition of Digital Products Inc., a maker of computer servers for printers.
The company said its aerospace telemetry and manufacturer support units continue to have "major opportunities for growth."
