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I WOULD LIKE TO COMMENT ON THE FOLLOWING NEWSPAPER ARTICLES THAT I HAVE RESEARCHED ON THE INTERNET: „I DO NOT PURSUE ANY COMMERCIAL INTERESTS WITH MY INTERNET APPEARANCE. I HAVE COMPILED THESE ARTICLES SOLELY SO THAT THEY CAN BE READ IN A CHRONOLOGICAL ORDER AND IN CONTEXT. SHOULD THIRD PARTIES NEVERTHELESS FEEL THAT THEIR RIGHTS HAVE BEEN VIOLATED, PLEASE SEND ME AN E-MAIL AND I WILL REMOVE THE ARTICLES IMMEDIATELY.“

• 1983
• 1984
• 1985
• 1986
• 1987
• 1988
• 1989
• 1990
• 2014

You can also find many newspaper articles in the San Diego Union Tribune (fee required). The term Kaypro appears 5,100 times! You can find even more at Newspapers.com by ancestry (fee required). There are more than 275,00 entries for the terms Kaycomp and Kaypro. Browsing through the newspapers is extremely tiring. It feels like 99% of the matches are just adverts.

Some statistics on Newspaper.com:

Year	Keyword	Matches
1982	kaycomp	245
1983	kaycomp	35
1984	kaycomp	0
---	---	---
1982	kaypro	1,339
1983	kaypro	25,981
1984	kaypro	44,962
1985	kaypro	44,430
1986	kaypro	43,078
1987	kaypro	38,681
1988	kaypro	34,643
1989	kaypro	17,730
1990	kaypro	9,183
1991	kaypro	5,599
1992	kaypro	3,648
1993	kaypro	2,769
1994	kaypro	1,718
1996	kaypro	721
1997	kaypro	444
1999	kaypro	188
2000	kaypro	150

The very first advertisement is dated 26 April 1982, almost four weeks after the West Coast Computer Faire 7 (March 19-21, 1982, San Francisco). [1]

New York Times BUSINESS
Kaypro Stock
Aug. 27, 1983

The Kaypro Corporation, the portable computer manufacturer that had its intial public offering on Thursday when four million shares were sold at $10 each, closed yesterday at 10 1/4 bid, up 1/8, in over-the-counter trading.. The company's profits and sales have been booming this year.

In its prospectus, Kaypro said it had earned $11.7 million, or 36.5 cents a share, in the 11 months ended July 31, compared with a loss of $468,000 in the period a year earlier. Revenue for the 11 months totaled $64.9 million, compared with $5.4 million for all of 1982. Prudential-Bache Securities was the managing underwriter of the offering.

Computerwoche
04.03.1983

Die Vertriebsrechte für den Mikrocomputer Kaypro II der Non-Linear-Systems hat die Macrotron GmbH, München ab 1. Februar 1983 übernommen. Für eine Konfiguration mit 64 KB Hauptspeicher, 9-Zoll-Bildschirm, 2 x 200 KB Floppy, Betriebssystem und drei Softwarepaketen muß der Käufer 6350 Mark zahlen.

New York Times BUSINESS
Kaypro Price Cut
Oct. 8, 1983

The Kaypro Corporation, a Solana Beach, Calif., computer manufacturer, announced that it had reduced the price of its Kaypro 4 personal portable computer by $200, to $1,795. Kaypro said the price reduction, which does not affect the Kaypro 10 model, is a result of supplier cost reductions in both disk drives and video display screens, coupled with increasing volume orders. The Kaypro 4, which uses double-density disks, features 392K of formatted storage per disk for a total of 784K for the unit's two disk drives.

Computerwoche
Preissenkung in den USA: Kaypro 4 billiger
21.10.1983

SOLANA BEACH (VWD) - Die Kaypro Corp. hat den Preis für den Personal Computer Kaypro 4 gesenkt. Nach Angaben der Gesellschaft gilt der neue Preis von 1795 Dollar rückwirkend ab 1. Oktober. Zuvor kostete das Gerät 200 Dollar mehr. Von der Preisänderung nicht betroffen sind der Computer Kaypro 10 und der Kaypro II.

New York Times
KAYPRO'S BID TO REMAIN ON TOP
Nov. 27, 1983

EIGHTEEN months ago, Andrew F. Kay unveiled his portable computer at a San Francisco trade show. Since then, the Kaypro II, a boxy, 26-pound machine that retails for $1,595, has become one of the success stories of this most explosive of industries. So great is demand for his portables that Mr. Kay has had to erect a white circus tent next to his manufacturing facility at this beachfront community, 20 miles north of San Diego, to house spare parts until a permanent warehouse can be built.

The Kaypro Corporation has a lock on the top spot in the United States market for portable computers. Several new improved Kaypro models - the IV and the X - are selling briskly. And last summer, its arch competitor, the Osborne Corporation, went bankrupt; a development that boosted Kaypro into the No. 4 position in the entire personal computer market behind I.B.M., Apple Computer and Radio Shack. Kaypro will sell 135,000 units this year - roughly one- third of the portable computers sold. (The personal computer market is distinct from the lower-priced home computer market, the province of such manufacturers as Commodore and Coleco).

''Kaypro is doing phenomenally well,'' says Douglas A. Cayne, a computer industry analyst at the Gartner Group Inc., a market research firm based in Stamford, Conn. ''I haven't seen a computer company excel this quickly in a long time.'' During the year ended last Aug. 31, Kaypro earned after-tax profits of $12.9 million on sales of $75.5 mllion. Not bad for a family-controlled concern that only two years ago was producing oscilloscopes for the aerospace industry and losses for the 64-year-old Mr. Kay under the dry corporate name of Non Linear Systems Inc. (Mr. Kay, his wife Mary, and his two sons, Allan and David, all hold executive positions at Kaypro).

But as usual in such situations, success breeds competition. In this case the competition is formidable: Big Blue, or, as the company is more formally known, the International Business Machines Corporation. I.B.M. does not yet make a portable but its dive into the personal computer pool has doused every competitor in the vicinity, including Kaypro. Many customers, particularly first-time computer users and owners of small businesses, weigh the virtues of the $3,500 and up I.B.M. Personal Computer against those of the far cheaper Kaypro models before putting their money down.

In short order, the I.B.M. PC has set the standards for this segment of the industry, both in terms of hardware and software. Potential customers know that the giant company based in Armonk, N.Y., will be around to service their machines in the future; they are not so positive about the longevity of the Kaypros of this world. So any competitor wishing to stay afloat has to make computers that accept programs written for I.B.M. machines. Kaypro's ability to respond to the I.B.M. challenge, while fending off computer piranhas of its own size, will decide whether the Kays can stay on the fast track.

To meet the challenge, most small manufacturers of personal computers have come out with machines that not only employ the same internal operating system as the I.B.M. computer - and so can handle the same programs - but they also resemble the I.B.M. entries in physical appearance. These clones include such portable makers as Hyperion, Compaq, and Otrona, are selling well.. Dataquest, a California-based market research firm, estimates that 60 percent of all new programs being written for personal computers are in the language understood by I.B.M. machines.

Kaypro is following I.B.M.'s lead with its inner-workings, if not its external look. Just last month, the company signed a deal with Microsoft Inc. to use the internal operating system the latter developed for the I.B.M. PC. Kaypro has implanted that system upon an electronic board that can be inserted into its machines at the factory. By pressing a switch, customers can move back and forth between the I.B.M. system and the Kaypro system. Kaypro is installing this board in one-third of its new units. Customers who want the I.B.M. dimension can add $400 to the price of the basic machine.

Alexander D. Stein, a senior computer industry analyst at Dataquest, says that Kaypro's decision to build the I.B.M.-compatible machine was ''a critical move for Kaypro and they know it.'' David A. Kay, the 38-year- old second son of the founder and vice president for marketing and planning at Kaypro, concedes as much. ''Our strategy has been to be the market leader among low-cost, full-featured, personal computers,'' he says. ''That means we must have the ability to provide a unit with the standard operating system of the time, so that thousands of programs on dealer shelves can be used with our machine. It appears that MS-DOS - the I.B.M. operating system - will overtake the CP/M, that we use, as the dominant operating system.''

The Kays believe that the board gives them a powerful selling point with those of their customers - primarily owners of small businesses, professionals, journalists, and engineers in need of a computer at home - who might otherwise lean to I.B.M. because of the giant company's reputation. But at least one outsider has his doubts. ''Kaypro has got to come up with an I.B.M. 'workalike,' '' says Ezra Shapiro, who recently left Kaypro to become West Coast editor of Byte magazine. '' I do not consider the new machine to be a viable solution.''

Still, not all Kaypro's customers need or want the complete range of I.B.M. programs. Besides, the Kaypro has a number of other compelling selling points. The portability appeals to some people. And the price is right. The Kaypro IV, with the electronic board included, sells for $2,195. For that the buyer gets the keyboard, screen, 64K of working memory and 800K of disk memory storage capacity, in one neat package. An I.B.M. Personal Computer packing the same computing power and memory capacity retails for nearly twice as much.

Kaypro is traveling in fancy company, considering its recent past. Three years ago, Andrew Kay was chairman and chief executive of a company in desperate need of a new product to keep it alive. Mr. Kay, a graduate of the Massachusetts Institute of Technology, founded Non Linear Systems back in 1953. The company was built around the digital voltmeter, an instrument invented by Mr. Kay to measure the strength and direction of DC electrical strength. For nearly 20 years, Non Linear Systems flourished as a small maker of electronic test equipment used primarily in the defense industry.

But by the early 1970's, with the end of the Apollo space program and the decline of the aerospace business in general, Non Linear's business atrophied. For eight years, the company floundered. As the losses mounted, Mr. Kay searched for a new product to prop up flagging sales.

Then, as so often happens in business, a personal experience of the founder sparked an idea for a new product. One day in 1978, Mr. Kay noticed that his son-in-law, an architect, was having trouble moving his Apple computer. Realizing that the Apple was too big and unwieldy to tote around, Mr. Kay wondered whether a portable computer might be built that would do the same job. He set out to see.

Early in 1979, Mr. Kay hired William C. McDonald, an M.I.T. classmate who lived in Boston but had a hankering for a warmer climate and a new challenge. Financed by about $1.5 million in seed money obtained through second mortgages on Mr. Kay's home and his other real estate holdings around Solana Beach, Mr. McDonald and a team of Non Linear researchers set out to parlay their knowledge of electronic test equipment into a computer.

In mid-1981, with its portable computer still in design stage, Non Linear suffered what seemed a crushing blow: Adam Osborne introduced his portable computer. The briefcase- sized Osborne I machine was an immediate hit, capturing virtually all of the then-embryonic portable computer business.

But there's an old saying about how to spot the pioneers: They are the ones with the arrows in their backs. And that is what happened to Mr. Osborne. For although the Osborne sold well to curiosity seekers and computer aficionados, it gave the competition a target to shoot at. Several other computer companies took the Osborne apart, talked up its faults to the public, and brought out their own improved versions. Non Linear, now called Kaypro, was one of these competitors.

The Kaypro I did not pass muster, but a second effort, the Kaypro II, matched the Osborne in concept and price - for $1,795 customers got the computer, keyboard and memory all in a single, portable package - and boasted some critical advantages.

The Kaypro viewing screen was more than twice the size of the Osborne screen, which many users considered too small for everyday use. And while both machines included word-processing programs, the Kaypro could handle a full 80 characters in a line of text for editing, whereas the Osborne machine was limited to roughly 40 characters. Finally the Kaypro memory devices could hold twice as much data as the Osborne's.

Apparently, these differences mattered. Computer analysts note that consumers began deserting the Osborne for the Kaypro II, once the latter came to market in June 1982. While Osborne's collapse can be attributed to numerous causes, many analysts agree that Kaypro played a key role in its demise. ''Osborne identified a need - the need for portability in computers,'' says Mr. Cayne of Gartner ''Kaypro took Osborne's idea and did it better.''

The success of the Kaypro II, along with Osborne's demise, largely accounts for the jump in Kaypro sales from $5.5 million in the fiscal year 1982 to $75 million this year. But it does not explain the company's ability to undersell the competition and still transform a $468,000 loss into a $12.9 million net profit.

Part of Kaypro's success formula, analysts say, lies in the fact that its machines are made almost entirely from standard components that have fallen dramatically in price. The disk drive, now widely available, is the same drive used on the I.B.M. Personal Computer. And labor costs, particularly when compared to those prevailing in Silicon Valley, 500 miles to the north, are low. (On the other hand, the workers do get all the citrus drinks and avocado salad they can eat for a dollar a day from the company's dining room.)

Another money-saving approach was Mr. Kay's decision to line up his own network of independent dealers, some 900 of them in major markets at last count, and so avoid distributors who take a part of the manufacturers' profit. Kaypro executives do have to handle more distribution details as a result, but Mr. Kay says that his financing needs are sharply reduced because his dealers pay cash on delivery 85 percent of the time.

Part of the cost economies at Kaypro stem from the lean management style of the Kay family. Although the company went public last August, the Kays continue to hold more than 85 percent of the stock and make virtually all operating decisions. The older son, Allan M. Kay, aged 39, handles most of the administrative duties at headquarters. Only recently, did the Kays hire the company's first mid- level managers - a controller and manufacturing manager. ''

Even the company's executive offices and manufacturing facility here - a series of slim, barracks-like buildings perched atop a bluff overlooking some of the most spectacular ocean view in the West - are spartan. And none of the Kays receive a salary of more than $41,000 a year. The one exception to this familial frugality is older son David, who favors expensive suits and stylish autos.

Now that sales are approaching $100 million and the company is expanding overseas - it has sales offices in the Netherlands, West Germany and France that currently do $10 million in annual business - some industry experts believe that the Kays must bring in more professional managers. Says Mr. Shapiro of Byte magazine: ''When the company was a small instrument maker with 50 or 60 people, control to the level the Kays have was fine. But when you have 500 to 700 people and you're a multimillion-dollar organization it is very constricting,''

The Kays counter the criticism by asserting that they are professional managers. They will need to be. For I.B.M. is not their only serious challenger. Hyperion, Compaq, and several other companies make competitive portables. And, according to computer industry analysts, consumer interest is turning from hefty portables like the Kaypros to 8 1/2-inch by 11-inch lightweight computers that can fit in an attache case. (see box.)

Computerwoche
Preisänderung bei Kaypro
03.02.1984

FRANKFURT (VWD) - Mit Wirkung vom 1. Januar 1984 hat Kaypro die Preise ihrer in der Bundesrepublik Deutschland vertriebenen Produkte geändert. Bedingt durch höhere Fertigungsquoten im Werk Solana Beach konnte der Preis des Kaypro 4 um 450 Mark auf 6448 Mark gesenkt werden. Der Preis des Kaypro 10 mußte wegen des gestiegenen Dollarkurses von 9689 Mark auf 10.098 Mark angehoben werden. Keine Preisveränderung gibt es beim Kaypro II. Er kostet weiterhin 5448 Mark.

New York Times BUSINESS
Kaypro and Mitsui
Feb. 28, 1984

The Kaypro Corporation said it had entered into a preliminary agreement with Mitsui & Company to market a new Mitsui computer on the Kaypro label. The manufacturer of portable computers said the Japanese model was a ''high end'' addition to the Kaypro line and said it would be priced close to the International Business Machines Corporation's Personal Computer. The company said that in three or four months it would also begin shipping a transportable, I.B.M.-compatible computer.

Computerwoche
16.03.1984

Um 300 auf 1295 Dollar reduziert Kaypro Corp. laut VWD den Richtpreis für den Personal Computer Kaypro 2. Wie das Unternehmen mitteilt, gilt das Angebot vom 5. bis zum 31. März. Das Unternehmen will mit der Maßnahme das US-Verteilernetz mit 1200 Händlern unterstützen und die Verbraucher zum Erwerb des Rechners anregen.

Computerwoche
Kaypro Europe: Drei Tragbare
06.04.1984

Die tragbaren Personal Computer II, 4 und 10 der Kaypro GmbH, Frankfurt, werden in deutschsprachiger Version mit der dazugehörigen deutschen Software (Textverarbeitung, relationales Datenbanksystem, Tabellenkalkulation, Betriebssystem und englisches M-Basic) angeboten. Die drei Geräte verfügen über einen Z80-Mikroprozessor, einen Arbeitsspeicher von 64 KB Kapazität und einen Bildschirm mit 23 Zentimeter Diagonale, der 24 Zeilen zu 80 Anschlägen abbildet.

Im Modell II sind zwei Disketten-Laufwerke für Disketten mit je 191 KB Speicherkapazität eingebaut, im Kaypro 4 zwei Floppy-Disk-Stationen mit je 395 KB. Der Mikro Modell 10 war der erste tragbare Personal Computer mit eingebauter 10-Megabyte Winchester-Festplatte und einem Disketten-Laufwerk mit 395 KB.

Information: Kaypro Europe Rossmarkt 15, 6000 Frankfurt Halle 4, Stand 1001.

Computerwoche
Über normales Telefonkabel:
Kaynet vernetzt bis zu 60 Kaypro-Mikros
11.05.1984

FRANKFURT (pi) - "Kaynet", das von der Kaypro Corp. entwickelte lokale Vernetzungskonzept, kann bis zu 60 Kaypro-Mikrocomputer miteinander verbinden.

Nach Angaben des Frankfurter Kaypro-Büros werden die Informationen zwischen den Rechnern über ein normales, bis zu 330 Meter langes Telefonkabel geleitet. Durch eine spezielle Programmierung gebe es innerhalb des Netzes keine Unterbrechung, wenn eines der Geräte ausfallen sollte.

Jeder Kaypro-Computer arbeite im LAN in erster Linie als unabhängiger Rechner. Wenn der Benutzer sich ins Netz einschalte, könne er zum Beispiel kurze Mitteilungen an eine oder alle anderen Stationen machen und den oder die Empfänger über einen "Piepton" benachrichtigen. Längere Mitteilungen werden mit Hilfe eines Übermittlungsbefehls weitergeleitet und automatisch auf den Disketten der Endgeräte gespeichert. Vertrauliche Mitteilungen lassen sich laut Kaypro durch die Verwendung von Schlüsselworten schützen.

Informationen: Kaypro Europe, Informationsbüro Deutschland, Roßmarkt 15, Capim Center, 6000 Frankfurt/Main 1, Tel.: 06 11/1 34 41 23.

Computerwoche
Mit Uhr und Kalender
27.07.1984

FRANKFURT (pi) - Veränderungen nahm die Kaypro GmbH, Frankfurt am mittleren Modell ihrer tragbaren Mikrocomputer vor.

Bei gleichbleibender Preisempfehlung von etwa 6500 Mark wird der Kaypro 4/84 ab sofort mit grafikfähigem Antireflex-Bildschirm ausgeliefert. Er ermöglicht Business-Grafik im 1000 x 160-Punkt-Raster, inverse Darstellung, reduzierte Leuchtstärke, Blinken und programmunabhängige Unterstreichungen.

Anstelle der bisher eingebauten Standard-Diskettenlaufwerke werden im neuen Kaypro jetzt die moderneren Slimline-Laufwerke mit halber Bauhöhe verwendet.

Der neue Portable besitzt einen Arbeitsspeicher von 64 KB und zwei Speicher-/Leseeinheiten für Disketten von je 394 KB. Die Bildschirmdialoge sind wie bei den anderen Kaypro-Modellen in die deutsche Sprache übersetzt, ebenso die am meisten benötigten Dienstprogramme. Das im Lieferumfang enthaltene Softwarepaket umfaßt nach Herstellerangaben Programme für Textverarbeitung (Wordstar und Wordplus), dBase II, Mailmerge, Supercalc sowie die Programmiersprache Basic.

Informationen: Kaypro-Deutschland GmbH, Rossmarkt 15, 6000 Frankfurt 1
Tel.: 06 11/134 4123.

Computerwoche
Kaypro engagiert sich auf dem Schweizer Markt
24.08.1984

ZÜRICH (sg) - Den Schweizer Markt will Kaypro jetzt mit einer Tochtergesellschaft angehen. Innerhalb von drei Monaten wurden 300 Systeme installiert. Die Kaypro (Suisse) AG erachtet eigener Aussage zufolge eines gesamtschweizerischen Verkaufsnetzes als eine ihrer Hauptaufgaben.

Die von Kaypro angebotenen Computer lassen sich mit vielen Erweiterungen von Drittlieferanten, wie Druckern, Plottern, Harddisks und Kommunikationseinrichtungen bestücken. Grundpreis inbegriffen sind Software-Standardpakete wie Term, Supercalc, Wordstar, Dbase II, M-, S- und C-Basic.

New York Times BUSINESS
KAYPRO PARTS MAY BE MISSING
By Eric N. Berg, Sept. 13, 1984

The Kaypro Corporation said yesterday that it is investigating the possibility that millions of dollars in computer parts are missing from a circus tent and big trucks where Kaypro stored them.

As accountants sought to determine if the loss was a bookkeeping error, speculation mounted that many parts had been stolen.

Kaypro, based in Solana Beach, Calif., outside San Diego, is the maker of the Kaypro II - a $1,295 portable personal computer that last year was one of the nation's top-selling machines. The Kaypro II has been so successful, in fact, that Kaypro was forced to stockpile parts for it and other models in trucks, in bags strewn on its lawn and under a giant, billowing circus tent on a bluff overlooking the Pacific Ocean.

Security, Accounting Called Lax

But security and accounting for the parts has been lax, people close to Kaypro say. Now, according to an analyst who asked not to be identified, a preliminary review of inventory by Kaypro's auditors, Peat Marwick, is indicating huge shortfalls of chips, screens, disk drives, circuit boards and other components for Kaypro computers.

Although the accountants' work is not finished, reports circulating in the computer industry suggested that Kaypro's loss could approach $6 million. As of June 30, Kaypro's inventory totaled about $60 million, according to the company.

The Peat Marwick partner in charge of the case would not answer calls.

''Nobody knows how much the loss is because Kaypro's accounting is so bad,'' said Kenneth T. Lim, an industry analyst at Dataquest, a San Jose, Calif., market researcher.

Late yesterday, Kaypro was reluctant to discuss in detail its apparent loss. In a statement, the company said it lacked sufficient information to assess damage. But responding to news reports of an impending write- down of several million dollars, the company said, ''Although there is the possibility that the amount of the loss, if any, when determined could prove less than this amount, it is possible that it may reach or exceed such levels.''

It was not immediately clear what part of the apparent loss could be attributed to theft and what part to bookkeeping problems. Kaypro has not filed any theft reports with the local sheriff.

Previous Thefts Hinted

In particular, Andrew Kay, Kaypro's chairman and founder, has hinted to reporters in the past that people have taken parts and computers from the company's manufacturing plant without authorization. A secretary at the company said Mr. Kay was not available yesterday.

But David Kay, who is Andrew Kay's son and Kaypro's vice president for marketing, said in a telephone interview that the tent, which contained boxes of tiny electronic parts, was ''not very secure; all it takes is a pocket knife to cut it.'' A company spokesman noted, however, that the entire Kaypro complex is surrounded by a fence and is guarded around the clock.

A good deal of Kaypro's inventory problems may be related to faulty accounting, however.

Sources close to the company said yesterday that Kaypro may have failed to note all its defective parts. The result would be that the company would include on its books components that had been discarded.

Kaypro has also suffered from a large number of problems in the hard disk memory system of its Kaypro 10 model. Dealers are supposed to return faulty memory devices to Kaypro for credit but have not always done so. Kaypro, aware of that, may have been counting as returned parts that were not returned, these sources said.

Suits Possible

Kaypro could face stockholder or Government suits, if it can be shown that the company violated generally accepted accounting principles.

The apparent losses are part of broader problems at Kaypro. Although the company's 26-pound Kaypro II continues to be popular, helping push Kaypro's sales from $5 million in 1982, to an estimated $100 million in the year ended Aug. 31, revenue growth has fallen off recently. The company has also been shaken by management turmoil.

Moreover, Kaypro, a hot new issue last year in the over-the-counter market, has since fallen from Wall Street's grace. Its stock price has dropped from an initial bid of 10, to 3 7/8 yesterday.

New York Times BUSINESS
Kaypro Is Sued
Sept. 19, 1984

A class-action lawsuit has been filed against the Kaypro Corporation, a manufacturer of microcomputers, by a stockholder, George Franklin of New York. The lawsuit names as defendants certain members of the Kay family, who own about 86 percent of the company's stock, according to last year's proxy statement, and Prudential-Bache Securities Inc. The suit charges that the prospectus for the offer of Kaypro stock contained untrue statements, that the defendants inflated earnings by overstating inventory and that they listed figures that resulted in the stock price being artificially inflated. Kaypro said the corporation ''believes there is no substance'' to the charges.

Computerwoche
Kaypro zentralisiert Europa-Aktivitäten
30.11.1984

FRANKFURT (CW) - Das zuvor größtenteils in nationale Vertriebsapparate gegliederte Europageschäft hat der amerikanische Arbeitsplatzcomputerhersteller Kaypro jetzt zentralisiert.

Unter dem Label des neuen Europamanagers Georg E. Hühne sollen im Rahmen der Reorganisation auch die Voraussetzungen für eine hundertprozentige Qualitätskontrolle vor der Auslieferung in die jeweiligen Länder geschaffen worden sein.

Neben den unter einer zentralen Leitung zusammengefaßten Bereiche Montage, Support, Rechnungswesen, Qualitäts- und Ersatzteilwesen sieht das neue Konzept innerhalb der einzelnen Länder Vertriebsstützpunkte vor.

Mit der Umstrukturierung der vertriebsunterstützenden Maßnahmen für die Europaaktivitäten sollen - so das Unternehmen weiter - Kostenersparnisse auf diesem Sektor erzielt werden. Für die Abnehmer hingegen liege der Vorteil in erster Linie darin, daß im Zuge einer länderspezifischen Qualitätskontrolle Software und Handbücher in der eigenen Landessprache vorlägen.

New York Times BUSINESS
KAYPRO, AMID LAYOFFS, ISSUING NEW COMPUTER
Feb. 25, 1985

The Kaypro Corporation plans to introduce a new computer today that is compatible with the PC-AT computer being sold by the International Business Machines Corporation.

The computer is likely to be the first of several AT-compatible machines coming out this year. It could provide a boost for Kaypro, which has seen sales of its main product, a low- priced portable computer, dwindle.

But the festive mood accompanying today's introduction will be slightly marred by news that the company laid off about 30 people last week. This prompted renewed conjecture about the financial health of the Solana Beach, Calif., company.

In addition to the layoffs, Kaypro is considering a cut in its advertising budget, according to one official. And some accessory products, such as a new printer, which were expected to be shown to dealers today, have been indefinitely tabled.

One laid-off employee, Winn Schwartau, who was director of market development, said he had been told that cash constraints were forcing the company to cut back on developing future marketing plans.

Research Is Said to Continue

But Kaypro officials said the layoffs reflect normal belt-tightening and a shifting of marketing and sales strategies and do not reflect a cash flow problem. Research on new products is continuing, they said.

''There is no crisis here,'' said John Hentrich, assistant to the company's president. He said that Kaypro had repaid its bank debt, leaving virtually no debt and that its accounts payable had dropped since the end of the fiscal year last Aug. 31, when they totaled about $9 million.

Kaypro prospered in 1983 and early 1984 by selling the Kaypro 2, a low- priced portable computer. But it can process only eight bits of information at a time, and sales have slowed.

The company took a $10 million write-down of inventory last year, resulting in a slight loss for the year. For the first quarter of the current fiscal year, the company reported net income of $73,000, compared with $2.8 million a year earlier. Revenues in the quarter, ended Nov. 30, fell to $25.2 million, from $29.2 million.

Analysts have said the company could face major troubles unless it finds a successor for the Kaypro 2, now being sold as the Kaypro 2X.

Kaypro bases its hopes on the new AT-compatible machine as well as an I.B.M.-compatible briefcase-size computer expected next summer.

New Model's Specifications

The new AT-compatible machine, which will not be portable, will sell for $4,550. It has 512,000 characters of internal memory and two floppy disk drives capable of storing 1.2 million characters of information each.

An I.B.M. machine with the same features lists for $5,785, according to David Kay, Kaypro's vice president of marketing and new product development. The new machine will be called the Kaypro 286i, after the Intel Corporation's 80286 microprocessor, which is used in the Kaypro product.

But the new marketing strategy has risks. It is not quite clear that the AT, which was introduced by I.B.M. last August and can be used by several people at the same time, will be as successful as I.B.M.'s less powerful but less expensive original PC. That could mean the market for compatible machines will be smaller.

Moreover, selling I.B.M. clones and competing on price is dangerous, because I.B.M. has huge economies of scale. Some manufacturers of I.B.M.-compatible personal computers have already gone out of business.

Los Angeles Times
Kaypro Corp. Facility Opens in Solana Beach
L.A. TIMES ARCHIVES, JUNE 16, 1985 12 AM PT

The $2.4-million, 62,000-square-foot computerized material handling facility for Kaypro Corp. in Solana Beach has been completed, according to Dunphy Construction Co., the contractor.

The structure was designed by Janice Kay, principal in Batter Kay Associates, AIA, and the daughter of Andrew Kay, president of Kaypro, a personal computer firm.

New York Times
Article 107428, July 9, 1985
$6.2 Million Kaypro Loss

The Kaypro Corporation, citing inventory valuation changes, reported yesterday that it had a loss of $6.2 million in the third fiscal quarter of 1985 in contrast to earnings of $3.2 million, or 9 cents a share, in the corresponding three months a year earlier.

Sales shrank 48.1 percent, to $16.7 million, from $32.2 million.

Kaypro, a microcomputer systems company based in Solana Beach, Calif., said that results in the latest quarter ended May 31 included reserves and write-downs of $9.8 million, or $5.4 million after taxes.

Andrew Kay, chairman and president of Kaypro, said that ''after a careful review of our changing product lines, changing market conditions and changing industry sales trends, the company has determined that this is an appropriate time to reduce the value ascribed to certain inventory components for financial reporting purposes.''

Computerwoche
Kaypro 2000 jetzt auch in BRD verfügbar
09.08.1985

MÜNCHEN (CW) - Der IBM-kompatible "Kaypro 2000" ist nunmehr auch in Deutschland erhältlich. Das 16-Bit-Gerät im Aktenorder-Format ist mit einem Arbeitsspeicher von 256 KB (ausbaufähig bis auf 768 KB) und einem 3,5-Zoll-Diskettenlaufwerk mit einer Speicherkapazität von 720 KB (formatiert) ausgestattet. Der LCD-Bildschirm zeigt 25 Zeilen zu je 80 Zeichen, seine grafische Auflösung umfaßt laut Kaypro 200 x 640 Punkte. Der Kaypro 2000 soll fünf Kilogramm wiegen und rund 6800 Mark kosten.

Los Angeles Times
Kaypro cut prices on its business computers.
L.A. TIMES ARCHIVES, OCT. 9, 1985 12 AM PT

Responding to price cuts by other computer makers, the San Diego-based firm slashed the cost of its business line by 18% to 20%. Kaypro manufactures personal and business microcomputers. The company said it is lopping $600 off the price of its Kaypro 6e, a hard-disk portable that is compatible with the IBM PC XT. The new price is $2,695. The price of the Kaypro 162e was cut by $500 to $1,995, while the cost of the Kaypro 2X, which features dual disk drives and a modem, was dropped by $300 to $1,295.

Los Angeles Times
Kaypro introduced a desk-top business computer.
L.A. TIMES ARCHIVES, OCT. 14, 1985 12 AM PT

The Solana Beach, Calif.-based firm’s computer is a desk-top, MS-DOS-based microcomputer that is compatible with the IBM PC and PC XT. The heart of the system is an Intel 8088 microprocessor housed on the central processor board. Kaypro priced the complete computer system at $1,595.

Los Angeles Times
David Kay Succeeds His Father as President of Kaypro Corp.
BY GREG JOHNSON, OCT. 15, 1985 12 AM PT

SOLANA BEACH — David Kay was named Monday as president of Solana Beach-based Kaypro Corp., replacing his father, Andrew. The elder Kay had been president since 1952, when he founded the company, then known as Non-Linear Systems. Andrew Kay will continue as Kaypro chairman.

David Kay, 40, had been vice president of marketing and new product development since 1980.

“The transition won’t be all that dramatic,” David Kay said. “The company will have more of a marketing orientation, but my father will continue to be very active in the company. He is by no means going to be taking time off.”

Kaypro reported a $6.2-million loss and revenues that fell 48% to $16.7 million for the third quarter ended May 31.

Kaypro recently announced across-the-board price cuts aimed at restoring sales, which have been slipping for more than a year. David Kay said the company’s new Kaypro PC, an IBM XT-compatible desktop model, will help restore the company to its role as “the price/performance leader” in the microcomputer market.

New York Times BUSINESS PEOPLE
Kaypro President Succeeded by Son
By Todd S. Purdum, Oct. 15, 1985

The Kaypro Corporation, the California computer maker, said yesterday that its founder, Andrew F. Kay, would step down as president and be replaced by his son David.

The elder Mr. Kay, 65 years old, will remain chairman of the company, which he founded in 1952. But analysts said the promotion of David A. Kay, who has been Kaypro's vice president for marketing and product development and was instrumental in its move into computers, formalizes his active management role at a time when the company is battling a sales slump and is also facing losses brought on by inventory problems.

''I've been really involved in a lot of the operations previous to this time, and this really kind of makes it official,'' said David Kay in a telephone interview. ''My father is feeling he'd like to work more on the overall picture than in the day-to-day operations he's been so intimately involved with.''

Although the company does not use the title of chief executive, Mr. Kay, 40, said his father would continue to fill that function for the time being.

Kaypro also promoted John J. Hentrich, 35, its vice president for finance and its general counsel, to the new post of executive vice president. In that role he will continue to be responsible for financial matters, but will also assume some operating responsibiltiies, Mr. Kay said.

Since the strong success of its early portable computer, the Kaypro II, in 1982, the company has faced problems as its sales sagged in the hotly competitive microcomputer market. It has had difficulities in introducing a new line of machines compatible with computers made by the International Business Machines Corporation.

In addition, Kaypro has had to take charges related to missing or obsolete inventories, and for the nine months ended May 31, it reported a loss of $6.1 million in contrast to net income of $10 million in the period a year earlier. Sales dropped to $60.6 million, from $97.3 million, and the company has said it expected to report a loss for its fiscal year ended in August.

But Mr. Kay, who joined the company in 1980 after a career as a contractor, said he was confident that Kaypro's new I.B.M.-compatible machines would be a success.

Mr. Kay, a graduate of the University of California at San Diego with a degree in mathematics, is married and has three children.

Los Angeles Times
SEC Query Downplayed by Kaypro : Officials Admit Being Questioned
BY GREG JOHNSON, NOV. 12, 1985 12 AM PT

SAN DIEGO — Investigators from the Securities and Exchange Commission questioned Kaypro Corp. executives last summer, the company confirmed Monday.

Both company and SEC officials refused to discuss details of the inquiry, however, and would not comment on whether it sparked a formal investigation.

“The SEC has not physically been at Kaypro (but) they had a conversation with us,” according to Kaypro controller Robert Gorski, who downplayed the conversations and suggested that the federal agency often contacts “any public company with documents on file with (it).” The SEC’s interest in Kaypro was disclosed Sunday in the San Diego Union.

SEC interest in the Solana Beach-based computer manufacturer may have been sparked by six lawsuits by shareholders that allege that Kaypro violated federal and state securities laws during a $40-million offering in August, 1983, according to sources familiar with the company.

Lawsuit Allegations

The lawsuits allege that Kaypro’s offering prospectus contained “misrepresentations and material omissions” that misled investors about the value of Kaypro’s stock, which began trading at $10 but soon dropped to less than $5. It closed Monday at $1.50, down 25 cents.

“We’re in discovery and we’ve got our class certification,” said San Diego attorney William Lerach, who filed lawsuits on behalf of some Kaypro shareholders last year.

Lerach said he was unaware of any SEC involvement in the case.

Los Angeles Times
Settlement Is Reported in Lawsuit Against Kaypro
BY GREG JOHNSON, NOV. 18, 1986 12 AM PT

SOLANA BEACH — Kaypro is expected to announce a settlement today to a class action suit that accused company officers of fraudulently inflating the company’s revenue and earnings predictions before a $40-million initial public offering in August, 1983.

The suit, filed in U.S. District Court in San Diego, alleges that Kaypro “projected the image of a technologically advanced, well-managed, and highly successful growth company” when it in fact was anticipating “essentially flat earnings from the past year.”

When Kaypro went public on Aug. 25, 1983, it sold 4 million shares of common stock for $10 per share. The stock subsequently tumbled to about $1.50 per share and only last week rose to $2 per share, when the company announced it had returned to profitability.

The class action suit claims that bad management practices kept Kaypro from using the public offering to finance the development and marketing of its future business. Kaypro also suffered from increased inventory that piled up when the company was unable to sell its existing products.

On Monday, neither Kaypro nor attorneys for the various plaintiffs’ groups would discuss the anticipated settlement.

In past Securities and Exchange Commission filings, Kaypro declined to estimate its liability and did not discuss whether its insurance would cover a settlement.

The class action suit also names Prudential-Bache Securities, which was the lead underwriter in Kaypro’s offering, and Peat, Marwick, Mitchell & Co., which served as Kaypro’s auditor. Attorneys representing those firms were not available for comment Monday.

Last week, Kaypro announced a return to profitability with a net profit of $944,226 and revenue that jumped 53% to $22.7 million for the fourth quarter ended Aug. 29. Kaypro suffered a $9.4-million loss during the same quarter a year ago.

Kaypro also reported a $38,925 net profit and revenue that rose 3% to $77.9 million for the year ended Aug. 29. The company reported a $15.5-million net loss during fiscal 1985.

Los Angeles Times
Kaypro Settles Holders’ Suit on Stock Sale
BY GREG JOHNSON, NOV. 19, 1986 12 AM PT

Kaypro has reached an agreement to pay shareholders $9.3 million and settle a class-action suit that accused company officials of fraudulently inflating earnings projections before an initial public stock offering in August, 1983, it was announced Tuesday.

The settlement will be largely paid for by Kaypro’s insurance carrier and “will not have any significant impact” on the company, Kaypro Controller Robert Gorski said Tuesday.

The Solana Beach, Calif.-based computer manufacturer acknowledged no wrongdoing in the settlement, which still needs the approval of a federal judge in San Diego. That process is expected to take several months.

Kaypro’s auditors are expected to reissue “unqualified” reports for the company’s 1984, 1985 and 1986 fiscal reports. Peat, Marwick, Mitchell & Co. has been issuing qualified reports on Kaypro because of uncertainty about the company’s potential liability.

“Kaypro is pleased with the outcome of the settlement negotiations,” Chairman Andrew F. Kay said.

“It’s an excellent settlement figure for the plaintiffs, and Kaypro has ended its contingent liability,” said William Lerach, attorney for the plaintiffs.

Koreaner drücken auf die Preise bei Personal Computern
Comdex: Aussteller und Händler im 386-Fieber
21.11.1986

Einige Clone-Anbieter haben offenbar keine Zeit versäumt, sich einem "Standard" zu verschreiben, der noch längst nicht festgelegt ist - am IBM-Stand fand das Thema 80386-Prozessor offiziell jedenfalls nicht statt. So will Kaypro demnächst seine Supermikros mit dem leistungsstarken Chip ausrüsten. Die neuen 32-Bit-Systeme mit 1 MB RAM und hoher Speicherplattenkapazität sollen aufwärtskompatibel zu den gegenwärtigen Produktlinien des Herstellers sein. "Wir möchten der Anlaufpunkt werden für Netzwerkanwender, die alles aus einer Hand wollen", erklärt Kaypro-President David Kay. Mit dem neuen Desktop-Fileserver liefert das Unternehmen auch LAN-Software.

Los Angeles Times
Kaypro Corp. Reports $1.3-Million Earnings
BY GREG JOHNSON, JAN. 8, 1987 12 AM PT

Kaypro Corp. reported $1.3 million in net earnings for the first quarter ended Nov. 28, contrasted with a $2.5-million net loss during the same quarter a year ago. However, the return to profitability included a $515,000 income tax carry-forward.

Revenue increased 113% to $29.9 million.

The Solana Beach-based personal computer manufacturer credited its improved performance to growing consumer acceptance of its 16-bit, personal computer product line. Kaypro also signed an agreement to provide personal computers to Amway Corp.

TECHMONITOR
KAYPRO TERMINATES AGREEMENT WITH AMWAY
By CBR Staff Writer 09 Feb 1987

Kaypro Corp won’t be seeing its Personalikes being hawked door-to-door like household cleaning products after all: it has terminated the agreement with Amway Corp signed only at the end of last year (CI No 604).

TECHMONITOR
EXTRA! EXTRA! KAYPRO VENTURA+WORDSTAR PUBLISHER IS $8,500
By CBR Staff Writer 26 Feb 1987

Kaypro Corp has joined the desktop publishing systems fray with the arrestingly-named Extra! Extra! system, which the Solana Beach, California Personalike maker claims to be the market’s first complete turnkey desktop publishing system, containing all necessary components from one manufacturer for $8,495. That buys the Kaypro 286i Model C AT-alike with 640Kb RAM and 30Mb Winchester, EGA graphics and monochrome monitor, the 300 dot-per-inch Kaypro Page Printer II, the PH B an assortment of downloadable fonts, three-button mouse and all interface cabling. On the software front it includes Ventura Desktop Publishing software, WordStar 4.0, form generation software, MS-DOS 3.2, GWBasic, MailMerge, CorrectStar and paint software. Extra! Extra! can combine text from several word processors, and graphics from Lotus 1-2-3, AutoCAD, GEM, scanned photographs, all ASCII files, and self-generated art, into high quality documents for master reproduction. Options include a combined digital image scanner and OCR reader. US deliveries start on April 1.

TECHMONITOR
ENHANCEMENTS FROM KAYPRO
By CBR Staff Writer 09 Mar 1987

Kaypro Corp has added a run-length-limited controller as standard on its PC-10 Personalike to give it 30Mb of storage, renaming it the PC-30; and the 286i Model C will now come with 40Mb disk – and Kaypro is offering 50% off on mice bought with Kaypro PC, 286i or 386.

Computerwoche
386-Premiere bei Kaypro
27.03.1987

Das Paradepferd auf dem Kaypro-Stand war ein neuer PC mit 80386-Prozessor. Die wahlweise mit 16 oder sechs Megahertz getaktete Maschine kostet in der Grundkonfiguration mit 512 KB RAM und einem 5,25-Zoll-Diskettenlaufwerk mit 1,2 MB Speicherkapazität knapp 11 000 Mark. Festplattensysteme werden mit Kapazitäten von 40 bis 330 MB angeboten.

Neu in der Kaypro-ProduktpaIette ist der Laserdrucker Page Printer I. Er kostet mit 128 KB RAM rund 8000 Mark, eine Aufrüstung auf 1,3 MB ist optional. Der Page Printer I druckt acht Seiten pro Minute. In der Standardausführung sind vier Schriftarten vorhanden. Das Gerät emuliert IBMs Proprinter sowie Diabolo 630.

Los Angeles Times
Kaypro Corp., the Solana Beach-based computer manufacturer,...
L.A. TIMES ARCHIVES, APRIL 7, 1987 12 AM PT

Kaypro Corp., the Solana Beach-based computer manufacturer, reported only a slight increase in net income but a 41% jump in sales for its second quarter ended Feb. 27.

The company posted net income of $852,000 on sales of $28.9 million over the recently ended quarter, versus net income of $788,000 on sales of $20.4 million over the comparable quarter a year ago. This year’s second-quarter profit included a tax loss carry-forward credit of $343,000.

On a year-to-date basis, Kaypro net income stands at $2.1 million compared with a net loss of $1.7 million over the same six months last year. This year’s profit includes a tax loss carry-forward credit of $858,000. Year-to-date sales stand at $58.8 million, up 71% from the $34.5 million in sales reported a year ago.

Los Angeles Times
Kaypro Sees Little Threat in New IBM Line
L.A. TIMES ARCHIVES, APRIL 17, 1987 12 AM PT

Kaypro Corp. executives told shareholders at the company’s annual meeting Thursday that International Business Machines Corp.'s new line of personal computers introduced April 2 pose little threat to Kaypro’s line of IBM-compatible “clone” personal computers.

IBM’s decision to maintain an “open architecture” for its new computers and the fact that the new disk operating system software being developed for the IBM machines by Microsoft will be available in similar versions to the PC market at large mean there is little chance that Kaypro will be frozen out, John Hentrich, Kaypro executive vice president, said after the meeting.

Kaypro President David Kay said chances are good that Kaypro’s third-quarter revenues will exceed those of the second quarter during which the company sold $28.9 million in computers. Asked about the company’s relatively low-profit margins--Kaypro earned $852,000 or 2 cents per share during the second quarter--Hentrich said Kaypro is trying to reduce overhead through improved manufacturing efficiencies.

The company also introduced a video display add-in board that enhances resolution of Kaypro’s color graphics.

TECHMONITOR
KAYPRO ADDS THE 2000+
By CBR Staff Writer 04 Jun 1987

Kaypro also added the 2000+, with a revolutionary LCD screen technology that makes it twice as readable as previous such screens: it has a high contrast, supertwist backlit display with full EGA capability as standard and also includes connector for an external EGA, CGA or MDA monitor and will be available in two models – the first, out mid-July, has two 720Kb 3.5 floppies and 768Kb memory and the second, out in August, will have a 10Mb hard disk drive; both have a built-in rechargeable battery pack that can run for six hours come with comes with an assortment of bundled software, including WordStar 4.0, CorrectStar, Polywindows, MailMerge, GW-Basic, and MS-DOS – but the company forgot to give prices.

TECHMONITOR
KAYPRO CUTS PRICES
By CBR Staff Writer 04 Jun 1987

KayPro Corp, Solana Beach, California, has cut prices on its KayPro 386 line of 80386 machines, on the Extra! Extra! complete desktop publishing system, the KayPro 16E and the 162E: the KayPro 386 Models A and E are cut by $500 with the Model A, 512Kb and 1.2Mb capacity floppy drive, will go for $4,495 while the 40Mb and 130Mb model Es will be $5,795 and $8,095 respectively; the KayPro Extra! Extra! complete turnkey desktop publishing system, also falls $500 to $7,995 while the KayPro 16E transportable, IBM Personalike with 768Kb and 20Mb now goes for $1,595, while the dual floppy KayPro 162E is $1,395.

Los Angeles Times
Kaypro reported a loss of $803,619 for...
L.A. TIMES ARCHIVES
JULY 15, 1987 12 AM PT

Kaypro reported a loss of $803,619 for its third quarter despite a 27% increase in sales. The Solana Beach computer maker said part of the loss related to the reversal of a credit for tax-loss carryforwards, which increased the loss for the quarter by $322,000. The company cited several reasons for reduced profitability, including an increase in promotional and advertising expenses, the opening of new sales and service offices and a reduction in the net prices of computer models sold.

TECHMONITOR
KAYPRO INTRODUCES “SLOT TECHNOLOGY” ATALIKE
By CBR Staff Writer 05 Nov 1987

Kaypro Corp, Solana Beach, California has another machine that incorporates what it calls its Slot Technology, designed for easy upgrade. The 80286-based Kaypro 286 sells for $2,995, including a mono monitor, 40Mb hard disk, EGA adaptor, 12MHz processor switchable down to 6MHz, and five slots. It is also bundled with MicroPro’s WordStar Professional Release 4.0, SpeedStor, and Word Finder, and Microsoft’s GW-Basic and MS-DOS 3.21.

TECHMONITOR
KAYPRO ABANDONS THE Z80-BASED COMPUTER LINE
By CBR Staff Writer 17 Nov 1987

Kaypro Corp has abandoned the original Z80-based transportable computer line on which its fortunes were built: it says that it has sold in excess of $250m of the family, but is having to take a write-off on discontinuation of the line – see Company Results, page three; the machines will still be supported.

Los Angeles Times
Kaypro to Bow Out of ‘Transportable’ PCs; Loss Posted
BY CHRIS KRAUL, NOV. 18, 1987 12 AM PT
SAN DIEGO COUNTY BUSINESS EDITOR

SOLANA BEACH — Hit by shrinking margins and increased competition, personal computer manufacturer Kaypro Corp. announced a $10.9-million fourth-quarter loss and said it is discontinuing the “transportable” line of PCs that made it famous in the early 1980s.

Along with now-defunct Osborne Computer Corp., Kaypro popularized personal computers that were light enough to be carried from one site to another. The market success of the 26-pound Kaypro II, introduced in 1982, helped boost Kaypro’s 1984 sales to $119.6 million, a high point that Kaypro has been unable to reach since.

The company has since revamped its product line, replacing the transportable computers with a line of IBM-compatible desk-top PCs and a laptop computer called the Kaypro 2000.

Peter Teige, a computer industry analyst with Dataquest Inc. of San Jose, said Kaypro has suffered along with other manufacturers from the ever-increasing number of computer vendors, particularly those from Asian countries where manufacturing costs are lower. U.S. computer unit sales may grow to 8.7 million in 1987, up 20% from last year, but profit margins are under pressure, Teige said.

“Even though there are 350 significant vendors in the market, and more keep coming in, there is quite a bit of shakeout going on in the IBM-compatible market,” Teige said. Dataquest estimates that Kaypro will sell about 88,000 computers this year, a 1.2% market share, Teige said.

Growing Competition

Kaypro’s transportable, or “luggable,” computers have also been hit by competition from the growing array of powerful laptop computers that weigh 15 pounds or less, said Joe Ann Stahel, vice president of Store Board Inc., a Dallas firm that tracks computer retail sales.

Kaypro’s quarterly loss, which brought its full-year deficit to $9.6 million, reflects $7.6 million in special charges in addition to a $3.3-million operating loss. Most of the charges were inventory reserves and write-downs related to the discontinuance of the transportable computer line and to correcting “manufacturing inefficiencies” in switching over production to the Kaypro 2000 laptop model.

The company also set aside a $2.1-million reserve for an overdue account receivable the company said it may not be able to collect. Controller Robert Gorski declined to identify the customer. The company also suffered from the quarter’s lower-than-expected revenue of $20.5 million, down from $22.7 million in the same three-month period last year.

Shareholder Equity Down

Kaypro’s losses have reduced its shareholders’ equity to $15 million, but Gorski said the company is in no danger of running short of capital. Kaypro plans to reduce overhead by trimming the number of its available computer models to lower the cost of product support. (The company said it will continue to offer technical support and spare parts for the transportable line.)

No layoffs are planned, but Gorski said the company is in the process of reducing advertising, promotion and inventory costs.

Kaypro revenue for fiscal 1987 was $105.6 million, up from $77.9 million in 1986. This year’s losses contrast with fourth-quarter 1986 net income of $944,000 and fiscal 1986 net income of $39,000.

AP NEWS
Kaypro Quits Portable Computer Business
November 18, 1987

SOLANA BEACH, Calif. (AP) _ Kaypro Corp., plagued by sluggish sales, said Tuesday it is abandoning its five-year-old line of portable computers and will focus its attention on a smaller group of IBM-compatible computers.

″With the elimination of Kaypro’s transportable line of computers, the company can focus its sales and marketing efforts on a smaller group of mainstream technoloygy computers,″ the company said, referring to its machines that are compatible with the International Business Machine XT and AT models.

The company’s chairman, Andrew Kay, said the decision was ″difficult,″ but the action came as little suprise.

Analysts say Kaypro’s portable had steadily lost market share because it failed to keep pace with changes in the fast-moving industry.

Kaypro, founded as an electronics company 34 years ago, announced its decision as it reported losses of $10.9 million for the fourth quarter and $9.6 million for its fiscal year ended Aug. 28.

In 1986, the company showed a profit of $944,000 for the fourth quarter and $39,000 for the year.

Besides writedowns related to abandoning its portable-computer lines, Kaypro said the deficit for the most recent quarter included a $2.1 million loss reserve because a large customer had been unable to pay for goods it already has received.

Kaypro didn’t identify the customer, but said the customer is seeking to financially restructure itself and has promised to pay Kaypro early next year if the restructuring succeeds.

In addition, the company said it was establishing unspecified loss reserves for components of its laptop computer, the Kaypro 2000+, which was introduced in August. The components have been ″rendered unusable by design and technical improvements,″ the company said.

Kaypro’s sales also were off for the three months ended Aug. 28, dropping 9.7 percent to $20.5 million from $22.7 million. For the year, sales were up 35.6 percent to $105.6 million from $77.9 million.

The company said $7.6 million of the quarterly deficit was caused by the writedowns and loss reserves. The company posted a $3.3 million operating loss because revenues lagged behind costs.

TECHMONITOR
KAYPRO SETS PS/2 FOR JUNE
By CBR Staff Writer 28 Jan 1988

Determined to secure the kudos from braving the wrath of IBM, Kaypro Corp, Solana Beach, California says it will an 80286-based PS/2-compatible with a Micro Channel Architecture bus by June and claims that it will have a licence from IBM for the proprietary PS/2 technology. Kaypro also said that it had a letter of intent from the Wayne arm of Dresser Industries Inc for point of sale systems based on its PC-20 and PC-286 boxes, with ships startthis quarter. Wayne will sell the customised systems on to petrol stations for management control applications; no value was revealed.

Computerwoche
Langerwarteter PS2-Clone kommt von Außenseiter:
Kaypro testet IBMs Prozeßlust
11.03.1988

SOLANA BEACH (IDG) - Allen Warnungen aus dem Hause IBM zum Trotz will Kaypro einen PS/2-kompatiblen Rechner mit Mikrokanal auf den Markt bringen.

Kaypro, einst einer der führenden Anbieter in der CP/M-Welt, hat auf dem Sektor IBM-kompatibler Maschinen nur bescheidene Erfolge zu verzeichnen. Aus diesem Grund baue das Unternehmen auf ein Comeback, indem es sich an den PS/2-Zug anhänge, erklärte President David Kay. Ende Mai will er mit der Auslieferung eines derartigen Systems beginnen. Woher er seine Technologie - Chipsets und Bios-Know-how - bezieht, mochte er allerdings nicht bekanntgeben. Auch über technische Details des Produktes schwieg er sich aus. So ist derzeit nicht bekannt, gegen welches PS/2-Modell die Kaypro-Maschine positioniert sein wird.

Hinsichtlich der von IBM mit einiger Sicherheit zu erwartenden Maßnahmen bis hin zu einer Klage zeigte Kay sich jedoch optimistisch. "Wir sind sehr zuversichtlich, was die Lizenzierung des geistigen Eigentums der Beteiligten angeht", meinte er. Die volle PS/2-Kompatibilität sieht er als notwendig an, um strategische IBM-Software nutzen zu können, wie OS/2 Extended Edition mit ihrer maßgeschneiderten Datenbank und Kommunikationsroutinen.

Los Angeles Times
Kaypro Says It May Lay Off 100 Workers
BY CHRIS KRAUL, APRIL 14, 1988 12 AM PT

Blaming a shortage of semiconductors that has slowed production of its personal computers by up to 30% in recent weeks, Kaypro Corp. said Wednesday that it may lay off 100 workers this week.

A company spokeswoman said 38 employees had been let go as of Wednesday. More employees will be given pink slips today and Friday, she said, with the total depending on whether certain workers will accept shorter work weeks or “job sharing” arrangements.

Cutting 100 jobs would mean a 23% reduction from the 429 workers at the Solana Beach-based manufacturer as of April 8, the spokeswoman said. Before this week, the company had laid off an additional 100 workers since Aug. 31.

Both the company’s Executive Vice President John Hentrich and Controller Robert Gorski resigned from the company in recent weeks. Replacements have not been named.

At Kaypro’s annual meeting last month, company officials said the shortage and higher prices of 256K dynamic random access memory (DRAM) computer chips will have a “dramatic” negative impact on the company’s financial results for the quarter ending May 31 unless the shortage is alleviated.

Also at the shareholders meeting, Kaypro President David Kay said delays in chip shipments had caused a “10% to 30% reduction in all lines” of Kaypro computers shipped over recent weeks.

Kaypro reported a $2.2-million loss on $19.5 million sales for the quarter ended Feb. 26. Second-quarter sales were 32% less than for the same period a year ago. The company blamed engineering and production problems and price discounting for the unfavorable results.

TECHMONITOR
KAYPRO HITS TROUBLE DEVELOPING PS/2 CLONE
By CBR Staff Writer 24 Apr 1988

There’s trouble in the Solana Beach paradise, Microbytes reports: seems that Kaypro Corp has hit trouble developing its PS/2 clone and has had to fall back on its existing line of MS-DOS machines, forcing it to lay off 150 of its employees; the new machine, code-named Spear, is held up by a lack of a key chip according to president David Kay, but he is confident of having something to demonstrate at the Comdex show in Atlanta next month.

TECHMONITOR
KAYPRO CHAIRMAN EXPLAINS LOSS WITH CHIP SHORTAGE
By CBR Staff Writer 17 May 1988

The shortage of memory chips is getting to be intolerable KayPro Corp chairman Andrew Kay told USA Today, adding that the $616,000 KayPro lost in its most recent quarter could have been wiped out if chip supplies were increased and prices dropped: USA Today adds that Sun Microsystems Inc is having to send employees around the world to seek out scarce commodity memories, and the shortage is now expected to extend at least until early 1989.

TECHMONITOR
KAYPRO SLICES ANOTHER 35 JOBS
By CBR Staff Writer 06 Sep 1988

KayPro Corp, which had insisted that it would bring out a Micro Channel architecture machine this month, has had to slice another35 jobs, 10%, off its rolls because sales are down and the chip shortage hasn’t helped: the Solana Beach, California company now has 310 employees, just half the 1984 complement; and as for the Micro Channel machine, well, it will only come out if there seems to be a market there, and judging by Dell Computer Corp’s on-off- off ships of its own PS/2-compatible, in the US, no-one’s interested in PS/2 clones.

Los Angeles Times
President David Kay Resigns at Financially Shaky Kaypro
BY CHRIS KRAUL, OCT. 1, 1988 12 AM PT
SAN DIEGO COUNTY BUSINESS EDITOR

SAN DIEGO — Beset by financial losses and pressured by its principal lender to repay as much as $8.5 million in overdue loans, Kaypro Corp. announced Friday that its president, David Kay, has resigned.

Kay, 43, is the son of Kaypro founder, chairman and chief executive Andrew Kay and has been with the Solana Beach-based personal computer company since 1980. In an interview, Kay said his departure was entirely voluntary.

“I was not forced out or asked to leave. The timing just seems to be right. I have a lot of ideas,” Kay said, adding that he as yet has no specific business plans.

No permanent replacement was named for Kay. His father will take over as president on an interim basis, company spokesman Joseph Marcello said. Kay also is giving up his seat on Kaypro’s board, whose three remaining directors are his father, his mother, Mary, and his brother, Allan.

Marcello and John Hentrich, who recently returned to Kaypro as vice president in charge of sales and marketing, are putting together a new strategy for Kaypro, Kay said Friday.

Kay’s resignation comes at a time when the company is attempting to renegotiate loans that are overdue to Commonwealth Financial Corp. of Walnut Creek. Commonwealth President William F. Plein said Friday that Kaypro was given a two-week extension, until Oct. 14, to come up with a plan for repaying the line-of-credit debt. Company sources said the debt is from $7.5 million to $8.5 million.

Plein refused to speculate on what Commonwealth will do to try to collect its loans if Kaypro fails to come up with an acceptable plan.

Kaypro’s cash has been critically low in recent quarters, forcing Andrew Kay recently to lend the company $2.3 million from his personal funds for working capital.

The company has lost nearly $30 million over the last four years. Citing production difficulties, delays in new products and the higher cost of dynamic random access memory semiconductors, Kaypro reported a loss of $4.4 million on sales of $58.9 million for the nine months ending May 27.

For the fiscal year ending August, 1987, Kaypro reported a loss of $9.6 million on sales of $105.6 million.

Layoffs Scheduled

The company has put much of the blame for this year’s losses on the increased cost of the DRAMs used in Kaypro machines from an average $3 per chip to $12. While the cost has added significantly to Kaypro’s production expenses--there are an average of 36 DRAMs in most Kaypro PCs--Kaypro has been forced to hold the line on wholesale prices for competitive reasons.

To cut costs, Kaypro announced in August that it was laying off 35 workers. The layoffs were only the most recent in a series of cuts; Kaypro’s current payroll of 300 is down from 526 employees a year ago.

Last month, the company also delayed the introduction of two computer products: a laptop model and a clone of one of IBM’s Personal Systems/2 personal computers.

An innovator in the early 1980s in the production of “transportable” personal computers that used the CP/M computer operating system, Kaypro’s sales zoomed to $119.6 million in 1984 from $5.5 million in 1982. But the company fell on hard times as the IBM PC and its clones equipped with the MS-DOS operating system came to dominate the personal computer market.

Kaypro finally introduced a family of IBM-compatible machines in early 1986 and has been trying to regain its market position ever since. According to a June survey by InfoCorp, a Cupertino market research firm, two of Kaypro’s IBM-compatible lines, the PC and the 286 combined, accounted for 3% of all PCs sold at independent retail outlets.

TECHMONITOR
DAVID KAY RESIGNS AS PRESIDENT AND DIRECTOR
By CBR Staff Writer 03 Oct 1988

David Kay, son of Kaypro Corp founder and chairman Andrew Kay, has resigned as president and a director to pursue personal interests.

Computerwoche
18.11.1988

David Kay, President des am Markt weit zurückgefallenen amerikanischen PC-Unternehmens Kaypro, hat sich aus dem Geschäft zurückgezogen. Ein Nachfolger wurde noch nicht benannt.

Los Angeles Times
Kaypro Posts $7.1-Million Loss in 4th Quarter; Sales Plunge
BY CHRIS KRAUL, DEC. 3, 1988 12 AM PT

The financial blood-letting continued at Kaypro Corp., with the battered Solana Beach-based personal computer manufacturer reporting a $7.1-million loss for the fourth quarter ended Sept. 2.

The loss, which compared to a $10.9 million loss in the same quarter last year, came on sales of $13.3 million, a sharp reduction from the $20.5 million in sales reported for the year-before period.

Kaypro blamed the loss on reduced unit sales, a drop in customized computer sales and lower margins caused by the higher cost of dynamic random access memory (DRAM) chips. The company also disclosed in a filing with federal regulators that it made a $1.1-million provision, a charge on earnings, in the fourth quarter “as a result of product decisions rendering various component parts obsolete.”

For the full year ended Sept. 2, Kaypro lost $11.5 million on sales of $72.2 million, compared to a loss of $9.6 million on reduced sales of $105.6 million for the previous fiscal year.

The troubled computer company also disclosed in the filing that it was forced to borrow $500,000 more in the fourth quarter from chairman Andrew Kay for working capital, bringing the total borrowed from Kay over the last year to $2.8 million. Kaypro’s steady losses over the last two years have reduced its shareholder equity to a tenuous $3.2 million.

Kaypro’s 11-acre manufacturing and executive facility in Solana Beach, which is owned by Andrew Kay and leased to the company, is in the process of being sold, spokesman David Lawson said. Kay will lend part of the proceeds to Kaypro for working capital and to help refinance the company’s overdue $8-million debt to Commonwealth Financial Corp. of Walnut Creek.

To reduce costs, Kaypro laid off 35 workers in September, lowering the payroll to about 300 workers, Lawson said Friday. The total contrasts with Kaypro’s 526 employees as of Oct. 1, 1987. Kaypro President David Kay, son of chairman Andrew Kay, resigned in September. No more layoffs are now planned, Lawson said.

Los Angeles Times
Jan. 27, 1989 12 AM PT

Kaypro, a Solana Beach-based personal computer manufacturer, reported a first-quarter profit of $2.6 million on reduced sales of $9.3 million, contrasted with a loss of $615,677 on sales of $22.5 million during the comparable quarter for the previous year.

The company attributed the profit to a gain of non-recurring $3.5 million from a “barter transaction” involving the bulk sale of obsolete inventory that had been fully reserved on the company’s books. In exchange, Kaypro will receive discounts on goods and services. Kaypro will also receive a “contingent” amount of cash.

Kaypro said in a release that it has reduced its overhead by cutting payroll to 238 employees from 577 as of October, 1987. Kaypro is also attempting to restructure its debt and to reach an agreement with a major U. S corporation for the distribution of Kaypro products “via a closed distribution channel.”

Los Angeles Times
Kaypro Corp. has revised its first-quarter earnings...
L.A. TIMES ARCHIVES, FEB. 3, 1989 12 AM PT

Kaypro Corp. has revised its first-quarter earnings report. As a result, the firm is reporting a net loss of $904,926, contrasted with the previously reported earnings of $2.6 million. The revised figure compares to a net loss of $615,677 during the year-ago quarter. The Solano Beach-based computer company said an item that had been reported as $3.2 million in net other income had been restated as a net other expense of $290,517.

TECHMONITOR
KAYPRO LAUNCHES HIGH COUPON, FULL FEATURED 80286-BASED LAP-TOP IN UK
By CBR Staff Writer 12 Mar 1989

Less-than-confident seems to be the only way to describe Kaypro Computers Ltd’s launch of its latest high-end lap-top computer at the Which Computer? Show this year. The Barking, Essex subsidiary of the Solana Beach company is adopting a policy of wait and see as far as sales of the Kaypro 2020 are concerned, and this is hardly surprising considering that its price tag of UKP2,800 is over twice that of its predecessor, in the Kaypro lap top 2000 range, the 2000 Plus, which is being phased out. The new machine features an 80C286 processor running at 12MHz, 1Mb of memory, a 20Mb fixed disk drive and a 1.44Mb, 3.5 floppy disk drive. Serial and parallel 5.25 floppy drive and monitor ports have been included. It comes with an Extended Graphics Adaptor, and backlit liquid crystal display. On the software front, Microsoft Works is bundled with MS-DOS. Additional extras have pumped up the price; they include a detachable keyboard and a multi-voltage charger unit for round-the-world usage. The Kaypro 2020 will be available to interested laps this month. This is not all the company has to offer though: it also released details of forthcoming models in its 286 and 386 desktop series. The Kaypro 286/20 will have a 20MHz 80286 processor, 1Mb memory, 5.25 1.2Mb floppy drive and 40Mb or 80Mb hard disk options. The Kaypro 386/25 will offer the same drives, but use a 25MHz 80386 with 2Mb of memory. Both are to have a standard 225W power supply, although the company is working on a small chassis version of the 286/20, with a power supply of 150W. Software details are sketchy, but it seems likely that the 286/20 will support MS-DOS Version 3.3 and Basic, whilst the 386/25 is expected to come with MS-DOS 4.0. The computers are expected to be available here in April or May, but pricing on them has yet to be decided. In the US, Kaypro Corp looks likely to run into trouble with Micro I Inc, the San Francisco company that launched an 80386 based box with 30Mb disk for $2,000 just before Christmas (CI No 1,080) because Kaypro is calling a new low-end small footprint machine the Micro I. The machine uses a NEC V20-based 8088 compatible board from Faraday Electronics and comes in at $1,050 with 512Kb. The thing measures just 12 by 12 by 2.5, and can have either a small CRT display or a liquid crystal diode display. The processor is rated at 9.54MHz but can be slowed to 7.15MHz or 4.77MHz. It comes with two 3.5 720Kb floppies, RS232 and one slot as standard.

Los Angeles Times
Kaypro Restructures Debt: Troubled personal computer manufacturer...
L.A. TIMES ARCHIVES, MARCH 31, 1989 12 AM PT

Kaypro Restructures Debt: Troubled personal computer manufacturer Kaypro Corp. said it had restructured its debt with proceeds from the sale of its Solana Beach headquarters building and manufacturing plant. Kaypro, which reported an $11.5-million loss last year, paid off a delinquent loan from Commonwealth Financial Corp. of Walnut Creek but is still negotiating other refinancing.

TECHMONITOR
KAYPRO CORP FACES LAWSUITS FROM ESTATE AGENT, MICROSOFT CORP
By CBR Staff Writer, 11 Apr 1989

Struggling Kaypro Corp is now beset by legal problems to add to its commercial woes, and Microbytes Daily reports that just days after the Solana Beach, California company completed a sale and lease-back transaction on its main premises, a Los Angeles property company has obtained a court order freezing funds in four bank accounts assigned to Kaypro and its chairman, Andrew Kay. After an ex parte hearing last week, a San Diego Superior Court Judge signed a temporary restraining order to prevent Kaypro and Kay from dispersing funds that may be owed to the Los Angeles estate agent, DMC Financial Corp. The judge’s order affects two accounts each at Sanwa Bank and Southwest Bank and restricts up to $1m of Kaypro’s funds – $250,000 in each account, according to DMC president Desmond Kramer. The lawsuit stems from Kaypro’s efforts to met its capital famine by the sale and leaseback deal on its Solana Beach property. DMC claims that it contracted with Kaypro via a consultant to present possible buyers to Kay, and if a deal resulted, DMC was to receive a commission of 3% of its value. DMC says it made the introduction to Kaypro of Los Angeles-based Signature Group, the firm that paid $6m for the premises two weeks ago. But DMC says Kay led it to believe that Kaypro was not pursuing the Signature Group offer and instead wanted DMC to arrange a loan, and that he learned of completion of the sale and leaseback only from news reports – and that when he telephoned to collect, Kay denied any agreement to pay DMC a commission. A hearing on the dispute has been set for Wednesday next week. The suit filed against Kaypro also asks for punitive damages of $300,000, but DMC says that it just wants to get its commission on the deal and its legal costs. DR-DOS But that is not the only day Kaypro faces in court: Microsoft Corp has filed a suit in US District Court demanding payment of nearly $1m, including about $748,000 in royalties, minimum commitments and other fees under 1985 and 1988 licence agreements, and has notified Kaypro that the it is no longer licensed to use, copy, market or ship any Microsoft products, in particular, MS-DOS, Works and Windows. The 1988 agreement, which covers Microsoft Works and Windows, was terminated on March 24, while the 1985 agreement was cancelled on February 22, according to the court documents. Kaypro says that as soon as it received the letters from Microsoft, it immediately complied, and is now using Monterey, California-based Digital Research’s compatible alternative, DR-DOS – saying that it finds it much superior to MS-DOS. More importantly, it costs Kaypro only $5 a copy where it was having to pay $25 a time to use MS-DOS. Kaypro says it believes that Microsoft has overstated the amount that it owes, suggesting that the figure is more like $150,000. They have grossly exaggerated the situation. We are very upset with them and we might countersue them, said a Kaypro spokesman.

TECHMONITOR
KAYPRO OFFERS CONFIGURED 80286-BASED KC-2 AT $2,000 IN THE US
By CBR Staff Writer 31 Jul 1989

Kaypro Corp, Solana Beach, California reckons it is going back to its roots with launch of the KC-2, a $2,000 12MHz zero-wait-state 80286 machine. It is a complete floppy disk system with 640Kb memory expandable to 4Mb on the motherboard or through using six of the eight expansion slots. The price includes 1.2Mb 5.25 floppy disk drive; AT-style, 101-key keyboard; 12 monochrome monitor with video card and the DR DOS 3.41 MS-DOS-compatible operating system from Digital Research Inc. It carries a one-year limited warranty.

TECHMONITOR
KAYPRO HAS BIG ORDER FROM THE CABLE VALUE NETWORK
By CBR Staff Writer 07 Sep 1989

Struggling Solana Beach, California micromaker Kaypro Corp has something to cheer in the shape of a multimillion-dollar order for 8,000 MC-10 micros from the Cable Value Network, a Minneapolis-based cable television shopping channel.

TECHMONITOR
KAYPRO’S COMPUTERS IN THE KC LINE EQUIPPED WITH DR-DOS
By CBR Staff Writer 21 Sep 1989

Kaypro also announced that it has been equipping all computers in its new KC line with the DR-DOS operating system from Digital Research Inc at no extra charge: the line includes the KC-1, a complete 8088 microcomputer at $800; the KC-2 80286 box at $1,200; and the KC-3.

TECHMONITOR
KAYPRO SELLS KAYPRO AUSTRALIA TO EYMONT COMPUTERS
By CBR Staff Writer 01 Oct 1989

Kaypro Corp, Solana Beach, California has sold Kaypro Australia to Sydney-based Eymont Computers Pty Ltd: since 1984, Eymont Computers has owned and operated a multimillion-dollar computer dealership known as Discware in downtown Sydney, and has been one of 150 authorised dealers selling Kaypros in Oz; terms were not disclosed, but Voytek Eymont, owner of Eymont Computers, sold his computer dealership in order to become an importer and distributor of Kaypro products, and the sale includes the name Kaypro Australia and a warehouse and office facility in the Kirrawee suburb of Sydney; the new company will establish a Kaypro Technical Services division to provide service and repair for Kaypro and other makes of microcomputer.

TECHMONITOR
DAVID KAY RETURNS AS PRESIDENT OF KAYPRO CORP
By CBR Staff Writer, 06 Feb 1990

Return of the Prodigal Son: David Kay is back as president and chief executive of Solana Beach-based Kaypro Corp after 18 months of consulting: his dad, Andrew Kay will retain the title of chairman

Los Angeles Times
Troubled Kaypro Reports Annual Loss of $19.2 Million
BY GREG JOHNSON, FEB. 20, 1990 12 AM PT

Kaypro: The financially troubled Solana Beach computer manufacturer reported a $19.2-million net loss and total revenue of $21.8 million for the year ended Aug. 31. During the fiscal year ended Aug. 31, 1988, Kaypro reported an $11.5-million net loss and $72 million in revenue.

Kaypro reported that shareholder equity slipped from a positive $3.2 million to a negative $16 million. Assets dwindled from $19.6 million on Aug. 31, 1988, to $3.9 million last Aug. 31.

Andrew Kay, Kaypro’s founder and chairman, Friday blamed the loss and drop in revenue on “sluggish market conditions, adverse publicity and the company’s receipt of a large number of intermittently defective integrated circuit chips.”

Kaypro on Monday announced that David Kay, who rejoined the company just two weeks ago as president and chief executive officer, was turning those duties over to a business consultant from New England.

David Kay, Andrew’s son, is turning day-to-day management of the company over to Roy Y. Salisbury, managing director of FCSGroup, which a Kaypro spokeswoman described in a press release as a “business consulting and management service firm.”

Kay initiated the management change because it was time for the firm to “assemble a new management team, one with a proven track record in financial and administrative restructuring,” according to the spokeswoman.

Andrew Kay, former president and chief executive officer, will continue as Kaypro’s chairman of the board. On Feb. 6, David Kay returned to Kaypro after what the company spokeswoman described as an “18-month hiatus during which time he served as an independent consultant.”

Los Angeles Times
Kaypro Optimistic About Its Future; Analysts Not So Sure : Computers: The troubled company’s new president will oversee a major restructuring, including possible layoffs and a shift in production to Holland.
BY KIM KOWSKY, FEB. 22, 1990 12 AM PT

Kaypro Corp. has high expectations for a newly appointed president who will oversee a major restructuring of the personal computer manufacturer. But market analysts Wednesday questioned whether the beleaguered company can turn a profit in the industry’s current slowdown.

Kaypro on Friday announced a $19.3-million net loss for the year ended Aug. 31, contrasted with with a net loss of $11.4 million for the same period the year before. Year-end sales plunged to $21.8 million, from $72.2 million in 1988.

“It is unlikely, in their present financial condition, that they can really make any move,” said George Thompson, assistant editor and market analyst for Datapro Research in Delran, N.J. “What I see them needing is a massive infusion of capital, but performance has been so bad to date that not many people would be willing to purchase their stock.”

The appointment Monday of Roy Salisbury, 33, as president marks the first time in 33 years that control of the company founded by Andrew Kay has fallen into the hands of a non-family member.

The post was previously held by David Kay, who served as president a mere two weeks before appointing Salisbury. David Kay had resigned from the company 18 months earlier to work as an independent consultant before his brief return.

Salisbury, a former management consultant with little experience in the microcomputer industry, said he hopes to revive the faltering company by attracting badly needed capital from outside investors. Kaypro’s cash problems have already forced the company to seek extended payment terms from its suppliers.

“I believe, to be successful, we’re going to have to hit some sales levels we haven’t hit in a while,” Salisbury said. “It’s going to be tough, but we’re going to give all our key competitors a run for (their) money. There’s no doubt Kaypro was once a leader in the industry, and we’re going to bring it back there.”

In the past three years, Kaypro’s market share plunged from 6% to less than 1% of what is now a $50-billion industry, Thompson said. Regular layoffs over the past few years have left the company with fewer than 60 employees, down from a peak in better days of about 750.

With IBM, Apple Computer and Compaq Computer Corp. now holding 50% of the personal-computer market, Kaypro is one of an estimated 450 smaller firms clamoring for the remaining share, Thompson said.

Kaypro “just became generally eclipsed by quicker-growing vendors like Compaq,” Thompson said. “New companies were able to come in with newer, more technologically advanced product lines, and they didn’t have to worry about servicing older product lines.”

Those 450 vendors face an industrywide sales slump in the personal-computer market, according to Stella Kelly, an industry analyst at InfoCorp, a Santa Clara-based market research firm that tracks the industry. Last August, InfoCorp revised its growth estimates to a more conservative 12% for the coming year, Kelly said.

“The market in 1989 did not grow to the extent we originally anticipated earlier in the year,” Kelly said. “The market is simply more mature than it was in the early 1980s.”

Indeed, even market leader Apple has been hit with slower sales. On Wednesday, Apple announced it was laying off 400 workers, or 3% of its work force, to bring growth in line with the slower market.

Before joining Kaypro, Salisbury was managing director of Massachusetts-based FCSGroup, which he described as a business consulting and management service firm whose clients included some computer companies. His previous business experience included setting up a logging company and two travel agencies.

Although he has a limited background in the computer industry and expects to rely on computer experts for some aspects of the job, Salisbury said he brings “finance and administrative skills to restructure Kaypro as a corporation.”

Salisbury’s strategic plan may include layoffs at the already lean company. He also suggested that Kaypro will increase sales through dealership incentives.

To further cut costs, Kaypro will shift more of its production to a wholly owned subsidiary in Holland, Salisbury said. At the same time, the company is intent on expanding into Eastern European and Latin American markets, he said.

Although Kaypro has not been able to secure directors and officers insurance--which protects executives and board members against lawsuits--Salisbury said he is confident he will be able to fill three top management posts with qualified outsiders.

Although Kaypro has tried to keep pace with the never-ending wave of technological advances--it recently introduced a state-of-the-art computer featuring a quicker microprocessor--analysts wonder if the company will remain afloat.

“If they really want to stay in business and are committed to turning the company around, they have to do something dramatic,” Thompson said. “They need to rebuild all the presence, brand recognition, they’ve lost in the last three years. There’s some value in a name.

“But, in a crowded market, it’s going to take not only good products but telling people that they exist,” Thompson said. “The deck is stacked against them at this point.”

Kaypro has traded at about $.125 in recent months. Its stock traded at $10 when the company went public in 1983.

UPI ARCHIVES MARCH 2, 1990
Kaypro files for bankruptcy

SOLANA BEACH, Calif. -- Troubled computer maker Kaypro Corp., hit by slowdowns in the personal computer business, said Friday it has filed for Chapter 11 bankrupcty protection from creditors.

Kaypro had lost more than $30 million in the last two years as sales plunged from $72.2 million in 1988 to $21.8 million last year. Kaypro, which operates on a September-August fiscal year, did not release its 1989 final results until Feb. 16 and has not yet reported first-quarter 1990 results.

Roanoke Times
San Diego, SATURDAY, March 3, 1990
KAYPRO CORP. SEEKS PROTECTION

Kaypro Corp., once synonymous with portable personal computers but hobbled in recent years by a long skein of misfortunes, has filed for protection under Chapter 11 of the federal bankruptcy code.

The company, which will continue to operate and sell computers, is a victim of highly competitive market conditions, faulty components that led to costly warranty repairs, and ongoing management problems. Its bankruptcy filing comes only two weeks after it named management consultant Roy Y. Salisbury as chief executive.

Buoyed by its once-popular portable Kaypro personal computer, sales of the company, based in nearby Solana Beach, skyrocketed to $119.6 million in 1984 from $5.5 million in 1982. But it has since been buffeted severely. Last month, it announced a 1989 loss of $19.4 million on sales of $21.8 million, losses that brought its accumulated deficit in recent years to $44.1 million.

Sales of the Kaypro portable computer, which was based on the now-outdated CPM operating system, began to erode in the mid 1980s with the rising predominance of the DOS operating system incorporated in International Business Machines personal computers and their clones. Kaypro replaced it with new models that sold well for awhile but failed to make a profit.

New York Times COMPANY NEWS
Kaypro Files For Bankruptcy
Reuters, March 3, 1990

The Kaypro Corporation, whose all-in-one personal computer was once characterized as the Volkswagen Beetle of the high-tech industry, filed today for Chapter 11 bankruptcy protection. The company established a market niche in the early days of personal computers with a reliable low-priced machine that included a screen, computer and software in a semi-portable unit. Its sales soared from $5 million in 1982 to $119 million two years later, but 1984 proved to be the peak year for Kaypro.

Los Angeles Times
Troubled Kaypro Corp., which filed for Chapter...
L.A. TIMES ARCHIVES, MARCH 14, 1990 12 AM PT

Troubled Kaypro Corp., which filed for Chapter 11 bankruptcy protection two weeks ago, has appointed two consultants as part of its management team. The pair, David W. Leigh and Charles W. Clark, are principals with FCSGroup, a business management and corporate strategy consulting firm.

TECHMONITOR
KAYPRO MOVES BUILDING …
By CBR Staff Writer 11 Jun 1990

Kaypro Corp, operating under Chapter 11 bankruptcy protection, is vacating its sprawling five building complex in Solana Beach, California and has moved all manufacturing, administration and sales to a single 17,000 square foot building in Carlsbad, California; the Non Linear Systems subsidiary – that was the original name of the whole company, will keep a 4,000 square foot facility in Solana Beach for the time being; the Solana Beach site was sold to a property company in 1989 to raise money to reduce Kaypro’s debt; the retail discount store will also move to the new leased Carlsbad headquarters soon.

Los Angeles Times
Auditors, Appalled at Kaypro Records, Disclaim Responsibility for Report : DIEGO COUNTY
BY CHRIS KRAUL, JUNE 19, 1990 12 AM PT

SAN DIEGO-Kaypro’s financial records for its 1989 fiscal year were so poorly kept that its outside auditors have disclaimed responsibility for their report, Kaypro’s management said in an 8-K statement filed Monday with the Securities and Exchange Commission.

The lack of adequate accounting records was just one of a laundry list of woes catalogued in the SEC filing by Kaypro management, which is locked in a fight for control of the company with Andrew Kay, the company’s founder and largest shareholder. Kaypro filed for protection under Chapter 11 of the U.S. bankruptcy code on March 1.

In the filing, Kaypro chief executive Roy Salisbury also claimed that the company and Kay are being investigated for possible violations by the Securities and Exchange Commission, the Internal Revenue Service and the San Diego County Sheriff’s Department. Once traded over the counter, the company’s shares have been delisted by NASDAQ.

Kay, who was terminated as an employee of the company on April 2 but remains board chairman, could not be reached for comment at his Del Mar home on Monday.

The statement’s filing came two days before a hearing scheduled before U.S. Bankruptcy Judge James W. Meyers at which the judge is expected to choose a fifth Kaypro board member or trustee to help manage the troubled company. Both Kay and Kaypro management have proposed their own board nominees, Salisbury said.

The Kaypro board is currently made up of Kay, his wife Mary, Salisbury and Mark Seaver. Salisbury and Seaver, who is vice president of operations, are part of a “work-out team” hired by Kay in February to resurrect the floundering personal computer company. The Kays and the Salisbury-led management team have since become bitter enemies.

Once a leading manufacturer of portable and desktop personal computers, Kaypro has in recent months suspended manufacturing, laid off all but 10 of its employees and moved its offices from Kaypro’s leased Solana Beach plant to a facility in Carlsbad.

Despite the company’s problems, Kaypro has a “viable future” if it can successfully deploy its remaining assets, which Salisbury said are its brand-name recognition, its $50 million in tax loss carryforwards, a kind of tax credit, and its status as a public company.

In the 8-K filing, Kaypro also said that the SEC has requested documents pertaining to its 1988 and 1989 fiscal years. In an interview, Salisbury said that Kaypro is being investigated by the San Diego County Sheriff’s Department fraud and forgery unit in connection with $365,000 in allegedly bad checks written by Kaypro.

In addition, Kaypro owes the IRS about $1 million in unpaid employee withholding taxes, Salisbury said.

TECHMONITOR
BANKRUPT KAYPRO CORP IS NOT PRO KAY AS IT FIGHTS FOUNDER ANDREW KAY FOR CONTROL
By CBR Staff Writer 19 Jun 1990

Kaypro Corp may be little more than a corpse these days, but a bitter battle is being fought over the bones of the one high-flying personal computer manufacturer between the new management and the company’s founder, way back in 1953, Andrew Kay. The new management, led by president Roy Salisbury has fired Kay as an employee of the company, although he remains non-executive chairman and a director. The current situation is that all employees have been laid off because there is no cash to pay them, but some are staying on in the hope that something will turn up. Meantime in a filing with the US Securities & Exchange Commission, Salisbury reports that on March 28, 1990, company bankruptcy counsel received a three-item memo from the Office of the US Trustee, which asked for specific assurances that the Kay family was not and would not be involved in daily operations of the company and that they had not and would not remove assets from the premises after the filing of the company’s Chapter 11 petition, and that failure to comply could be cause for the trustees office to move for conversion from a Chapter 11 proceeding to a Chapter 7 liquidation. The new team has tried to comply but complains that in trying to get company cars back from the Kay family, a struggle for control of the company has erupted, with Andrew Kay attempting to remove the new management from control of the company. The new team believes that Kay has taken steps to undermine the success of the recovery plan, allegedly attempting to subvert negotiations with vendors, and has attempted to gain control of Kaypro Europe BV, an important corporate asset. Kay, it says, is now attempting to depose current management by calling a meeting to approve the appointment of a fifth board member sympathetic to him for today. The current management reckons the notice is defective and that any actions of the board taken at such meeting will be without legal force or effect. The team says that while it believes that the company can be successfully restructured under its plan, but only so long as Kay and other family members have no involvement whatsoever in the operations of the company.

Trustee to oversee the activities

To bring an end to the current infighting and to implement its goal, management has requested the appointment of a trustee to oversee the activities of whoever manages the company. But it has other things to worry about: it has also had a request for documents from the enforcement branch of the Los Angeles Regional Office of the US Securities and Exchange Commission seeking financial and corporate records of the company for the years ended September 1989 and 1988 because it is concerned with the accounting methods and policies employed by the former management. The new team believes that previous management’s practices and policies with respect to accounting matters for the years in question could be viewed by the Commission as constituting criminal violations of the federal securities laws. The new management has been unable to complete the company’s annual report due to its unfamiliarity with the operations for the year ended September 1989 and the auditors have said that they are unable to express an opinion as to the company’s financial statements for that year because of serious deficiencies in the accounting records, lack of audited statements for the foreign subsidiary and inability independently to confirm certain company accounts payable, accounts receivable and notes payable. As a result of all this, Kaypro has lost its NASDAQ listing. Furthermore, it warns shareholders and anyone that might be interested in buying the shares that there are, in all likelihood, no current records that accurately reflect the company’s financial condition in conformity with generally accepted accounting principles and that a result, management believes that anyone that currently buys or sells Kaypro’s securities are, to the extent that they rely on currently existing financial reports in connection with such purchases or sales, not in possession of reliable financial information on which to base them.

Financial Review
TECHNOLOGY RIDE SWAMPED BY REALITY
By JULIE PITTA, Jun 22, 1990 – 10.00am

Imagine that you are going back in time to 1984, when technology stocks were hot, and you come across a particularly glamorous stock with this story to go with it. The company is a pioneer in the manufacture of personal computers and one of the first to give away software with its machines. The California headquarters is near the ocean, and the hip managers sometimes hold meetings in the surf.

Sales have zoomed from $US 5 million to $120 million in just two years. The founder is a brilliant engineer with progressive ideas about how to motivate his workers. The press treats him to laudatory reviews featuring his family --he has got his father, two sons, wife and brother working at the company.

That story describes Kaypro Corp, and Wall Street so loved it that it put a market valuation of $US 382.6 million on the company. Kaypro is now bankrupt and its market valuation is $2.3 million. The story of how and why it failed is instructive, not only for managers, but for investors in glamor stocks.

One of the warning signs was that profits were always elusive. Investors valued the company at up to five times sales, ignoring the fact that it enjoyed only two profitable years of its nine in the PC business. Since 1986, when Kaypro last made money, losses have piled up to the tune of $US 41 million.

What went wrong with this once promising computer maker? Some analysts blame nepotism -- "too many Kays and not enough pros" -- but that is only part of the answer. The truth is, the bizarre dynamics of the Kay family kept the company from focusing on its main business.

Kaypro began in 1953 as Non-Linear Systems. It was founded by Andrew Kay, now 71, a brilliant if highly eccentric general sciences graduate of Massachusetts Institute of Technology. Kay invented the digital voltmeter and started Non-Linear to market the device to the aerospace industry. He had grown up in New Jersey, but moved to southern California in 1947 to run his profitable little business in electronic test and measurement equipment.

When personal computers appeared late in the 1970s, Kay became fascinated by them and decided to build his own. In the frontier days of the early 1980s, the Kaypro 2 became an overnight hit. The rugged little machine was inexpensive and reliable.

In an industry that celebrates the unconventional, Kaypro earned a reputation for eccentricity. Headquarters resembled a Californian grade school, in a tiny suburb of San Diego, only a mile from the beach. Kay favored the building because it created a healthy environment, allowing ocean breezes and natural sunlight to filter into the offices.

Some of Kaypro's employees were avid surfers and they conducted staff meetings in the ocean. "I wouldn't say the company was run from the water, but we got a lot done in those meetings," one former manager says. "We'd talk when we were sitting on boards waiting for a wave." Kaypro offered employees a free health bar with freshly squeezed carrot, orange and apple juices.

To manage all the growth, Kay turned to his own family. The critical role of marketing vice-president went to his son David, now 44, who spent the 1960s dropping in and out of schools before getting a mathematics degree from the University of California at San Diego. His qualifications included spending time surfing in Hawaii and selling windmills. Other family members on the payroll included Andrew Kay's eldest son, Allan, 46, who was given the fancy title of vice-president of administration; his wife, Mary, 71, who was Kaypro's secretary; Kay's brother Stephen, 69, who still runs the company's print shop; and father Frank, 94, who looks after maintenance.

But family squabbles frequently got in the way of business. Marketing man David Kay found it impossible to rein in his over-optimistic father and cut back on inventories. In 1984 Kaypro had millions of dollars worth of parts it could not use, so the Kays erected a circus tent to serve as a makeshift warehouse to accommodate the glut. But the tent was virtually impossible to guard and components worth several million dollars disappeared that year.

Even though Kaypro had parts to build enough computers to last six months(most computer companies today rarely keep more than half that on hand), Andrew Kay kept on buying more parts. David stopped arguing and went into action. He moved his desk to the loading dock and sent truck drivers away before they could unload their shipments.

Kaypro was so busy coping with its frenzied operations that there was no time for planning. As a result, the company failed to recognise the need to introduce a computer that was compatible with IBM's popular PC family.

When Kaypro woke up in 1985 and brought out a competitive IBM clooe, it was too late. The Kaypro portable was designed around an obsolete operating system called CP/M.

The squabbling between father and son increased. David Kay was named president in 1985, but his father remained very much in charge. "I was the president, but it was strictly a title," David Kay acknowledges today. Andrew Kay had been an authoritarian father. When David was an adolescent, he was discouraged from listening to rock and was constantly pushed to improve his vocabulary after an aptitude test showed up this weakness. Andrew Kay is still obsessed with vocabulary-improvement schemes that his company might market one day.

It seemed as if every decision turned into a fight between the two men. Andrew Kay thought that sales were slowing because computers shipped from headquarters took too long to reach Kaypro's dealers. To shorten the distance to dealers, Andrew wanted to open warehouses around the country. David fought the concept, but his father would not listen until it was tried and had failed.

As the situation became more desperate, the old man's ideas became still more odd. He wanted to augment dealers with Kaypro-owned retail stores and a direct sales force, both costly solutions the company could not afford. He doubled Kaypro's sales force to 42 in 1987. He hired mostly members of the Church of Latter Day Saints recruited by elder son Allan, who earlier had left the Unitarian Church to become a Mormon. When David asked his father to explain, he would say: "You can trust the Mormons. Howard Hughes did it."

"We had a communication problem," says Andrew Kay, who has seen most of his$US100-million paper fortune vanish and who is the largest unsecured creditor in Kaypro's bankruptcy case. "I used to talk to David a lot when he was young. But when we worked together, he didn't talk to me. To him, my questions seemed like threats. We weren't getting along at all."

David Kay sees things differently. "I had no control over what was happening," he says. At the end of 1988, David Kay quit the company to become a consultant.

In March this year the Kays brought in an outsider to handle the reconstruction, but there is not much left to rebuild. David quit a marketing job at Bluebird Systems, a small San Diego software company where he had worked for a month, about that time to advise his father. He now spends much of his time trying to convince lenders that Kaypro has a future. "I feel obligated to do what I can to bring it back," he says.

Its parking lot is empty and the offices are like a ghost town, but Andrew Kay, the founder, remains an optimist. "The seas will be calmer, the holes will be plugged, and it will be full steam ahead." He is quite an idealist and quite an ideas man. But investors are better off with a manager whose feet are firmly on the ground.

TECHMONITOR
KAY FAMILY WINS BACK CONTROL OF KAYPRO
By CBR Staff Writer 24 Jun 1990

Kaypro Corp founder Andrew Kay won the day in the battle for control of the bankrupt personal computer manufacturer, succeeding in getting the management team led by Roy Salisbury brought in only in February to turn the company around – ousted, after taking control of the board. The US Bankruptcy Court in San Diego approved the changes. The board determined that the financial progress of the company was absolutely dismal in the period that Salisbury was in charge, said Kay. Ben Fisher has been appointed president and chief executive of Kaypro: he has been an employee of the company since the 1950s, and was instrumental in turning around Kaypro’s parent company, Non-Linear Systems, during the aerospace industry slowdown in the early 1970s according to Kay. Kaypro Europe will now also take direction from the new Kaypro board. Salisbury and his partner will continue as directors, and Salisbury says that he is fully prepared to co-operate with Kaypro’s new management. Nevertheless, he says, he believes that the Kays will never give up control, and therefore the end of Kaypro as a viable corporate entity is inevitable.

TECHMONITOR
KAYPRO PERSUADED US BANKRUPTCY JUDGE JAMES MEYERS THAT A CHAPTER 7 LIQUIDATION FILING WAS UNWARRANTED
By CBR Staff Writer, 11 Oct 1990

KayPro Corp managed to persuade US Bankruptcy Judge James Meyers that it has done enough under its new management to make a Chapter 7 liquidation filing unwarranted, and he dismissed a motion to liquidate the company: Kaypro reported gross sales of $821,000 and a net operating profit of $63,000 for August, the first profitable month in nearly seven years, and the sales figures more than doubled July sales of $406,000, while June sales totalled $84,000; Kaypro is preparing its formal plan of reorganisation, which it plans to present to the bankruptcy court on January 31.

Loa Angeles Times, Dec.4, 1991
Kaypro President Soule Resigns

Kaypro Corp.’s president and chief executive, Geoffrey W. Soule, has resigned after trying for more than 15 months to revive the ailing San Diego-based computer firm, a company official said. Soule, who took charge of the firm in August, 1990, and one of the company’s four board members, Mark Seaver, resigned last week, Kaypro Chairman Andrew Kay said The company has not officially announced the changes yet, but Kay confirmed that the pair resigned last Wednesday, effective the same day. Kay gave few reasons for the resignations but said Soule will continue working as vice president of marketing for Kaypro, which is operating under bankruptcy court protection The president’s position “is up in the air right now” and hasn’t been filled, said Kay, adding that he is running the company’s day-to-day operations now.

San Diego Union-Tribune
Computer pioneer Andrew Kay dies at 95
MIKE FREEMAN, SEPT. 3, 2014

Andrew Kay, an early San Diego technology entrepreneur who founded Kaypro Corp. computers in the early 1980s, died last week in North County. He was 95.

A relentlessly curious learner and inventor, Kay gained prominence not only as an early computer pioneer but also for his novel management techniques.

He noticed that workers at the end of a production line – those who could see the fruits of the labor – were more productive than those at the beginning. So he broke the assembly line at one of his companies into teams. Psychologist Abraham Maslow – who studied human motivation – spent a summer with Kay observing his techniques.

Maslow later wrote a book on the topic and gave Kay credit for contributing to his theories. Kay “had a very wide spectrum of interests,” said longtime friend and fellow MIT engineering graduate Joe Marcello, 86. “One thing that is taken lightly by many people but is very significant is his contribution to Maslow’s theory of management. That transformed the way American manufacturers ran their businesses in the ‘60s and ‘70s.”

The son of Russian [correct is: Poland] immigrants, Kay grew up in New Jersey and graduated from MIT in 1940 with an engineering degree. He came to California to work at the Jet Propulsion Laboratory in Pasadena before moving to San Diego County in 1949 to join Bill Jack Scientific Engineering.

In 1952, he invented the digital volt meter to precisely measure electrical current. A year later he founded Non-Linear Systems to make the devices, which were first sold to the military and then later sold to commercial customers.

“I think he was one of the founders of digital technology because the digital volt meter was the first device that actually read out in electronic digits,” said his son, David Kay. “He had a long run building those instruments, from 1952 until Kaypro.”

Kay got into the computer business when he saw that the machines on the market were not as complex as his digital volt meters. He ended up running one of the hottest companies in the computer business for a time.

Founded in 1982, Kaypro Corp. made a portable computer. It battled rival Osborne Computer Corp – which introduced its product a year earlier with a tiny 5-inch screen – in the fledgling market for computers that people could take with them, precursors to today’s laptops.

“Kaypro with the Kaypro II — the first really commercially available version — took that basic idea of a portable computer and put a 9-inch screen in it,” said David Greelish, an Atlanta-based computer historian. “That made it way more usable. So he borrowed a lot of the ideas of the Osborne, but I think he made a much better computer. It had a solid metal case. It was really rugged.”

Kaypro focused on selling to independent electronics stores and saw sales soar to $120 million in just two years. The company went public. By the mid-1980s, it was the third largest computer seller behind Apple and IBM, and Kaypro employed nearly 700 workers in Solana Beach.

But Kaypro missed a key technology landmark when it was late to adopt Microsoft’s MS-DOS operating system, which became the de-facto industry standard. By 1990, Kaypro filed for bankruptcy.

In a 2005 interview with U-T San Diego, Kay said he regretted that Kaypro investors lost money. He said that he lost much of his fortune when the company’s stock collapsed. He invested millions of his own money trying to save the company.

But when Kaypro failed, it wasn’t in Kay’s nature to fret about it. He founded a new company, Kay Computers. Based in Solana Beach, the small company made specialized, rugged PCs for clients around San Diego. Kay led the firm into his 90s, coming into the office every day, making sales calls.

“He was very resilient,” said David Kay. “That is something I learned from him. Set your priorities. Don’t look back. Just move forward. Take what happened and learn from it. Don’t dwell on it.”

Kay Computers was active until 2010, when health problems forced Kay to give up the business.

He was inducted into the Computer Museum of America Hall of Fame in 1998. He was an active member of the MIT Club of San Diego, and was well known in the region’s technology circles.

Outside of business, Kay served as a trustee on the San Dieguito School Board from 1955 to 1970. He also was a board member of the Johnson O’Connor Research Foundation, which is involved in educational projects. Kay also was a founding member of the Del Mar Rotary Club.

An open memorial service will be held Saturday at 10 a.m. at Rancho Santa Fe Village Church.

Washington Post
Andrew Kay, inventor who developed the Kaypro II compact computer, dies at 95
Steve Chawkins, September 14, 2014

Andrew Kay, an inventor who pioneered the use of compact computers in the 1980s with Kaypro II, died Aug. 28 at an assisted living home in Vista, Calif. He was 95.

His son, David Kay, confirmed the death. The cause was not disclosed.

The Kaypro II weighed in at a mere 26 pounds, which is elephantine by today’s standards but was a technological breakthrough at the time. It was a favorite of early computer aficionados and briefly made Mr. Kay a high-tech titan. By 1990, he had filed for bankruptcy protection.

Mr. Kay was a charismatic inventor who scoffed at traditional management techniques and gave his factory workers and sales staff an unusual degree of freedom. He grew up speaking an Eastern European dialect called Lemko, believed in the power of an improved vocabulary and always encouraged employees to build their word skills.

Inspired by the human potential movement of the 1960s, he took frequent trips to the Esalen retreat center in Northern California and tried to apply some of the movement’s precepts at work.

Kaypro founder Andrew Kay, left, and his son David in 1984. (Los Angeles Times) At his company’s facility in Solana Beach, Calif., he junked the time clocks. Salespeople were not forced to produce detailed expense reports but were trusted to spend their monthly expense allowances wisely.

Assembly-line workers were paid as much as 25 percent more than minimum wage. After Mr. Kay noticed that the workers who put the final touches on a product at the end of the line seemed a lot happier than the ones at the start, he developed self-governing teams of six to nine employees who did it all.

“We regard management as basically an affair of teaching and training, not one of directing and controlling,” he told an interviewer. “We control the process, not the people.”

While the team idea is commonplace now, it was so innovative at the time that the renowned psychologist Abraham Maslow spent a summer in Mr. Kay’s plant, which he chronicled in his 1965 book, “Eupsychian Management.” “Eupsychian” was a Maslow coinage meaning human-centered.

The company, then called Non-Linear Systems, produced digital voltmeters that Mr. Kay invented in 1953. They were said to be the first electronic test instruments to use a digital display instead of the less precise readings afforded by a needle on a dial.

In the 1970s, Non-Linear was battered by competition from large companies and cuts in the aerospace industry. Drawn to the burgeoning personal computer industry, Mr. Kay, with his son David, designed the all-in-one Kaypro, a compact unit meant to compete with the standard set-up of separate devices connected by a tangle of cables.

Among the Kaypro’s first users was a young Pizza Hut marketing executive who signed on to an early Internet service from his apartment in Wichita.

“I remember it being frustrating,” Steve Case told Time magazine in 1997, “but there was something magical about the notion of sitting in Wichita and talking to people from all over the world.” Case went on to found AOL.

John Francis Kopischiansky was born Jan. 22, 1919, in Akron, Ohio, and grew up in Clifton, N.J. His parents emigrated from a region in what is now Poland. He graduated from the Massachusetts Institute of Technology in 1940 and worked for a defense company during World War II.

He moved to the Jet Propulsion Laboratory in 1949 and changed his name to Andrew Kay. He started Non-Linear in 1952.

After the company morphed into Kaypro, it underwent a tremendous growth surge, with revenue peaking at $125 million in 1983.

Kaypro outlasted some of its competitors, but it failed after Kay refused to ship manufacturing overseas, said David Kay, who was head of marketing before leaving the company in 1988.

Andrew Kay’s father, Fyodor Kopischiansky, worked for him as a maintenance supervisor until he was 98, when the Kaypro plant closed.

Mr. Kay continued in the computer business well into his 80s, supervising a few employees who built custom desktops for businesses in San Diego.

Mary Marble Kay, his wife of 56 years, died in 1996.

Survivors include four children; 14 grandchildren; and 26 great-grandchildren.

1. (↑) The Oregonian (Portland, Oregon), Apr 26, 1982, page 47

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--> Go to Part 1 : Versions
--> Go to Part 2 : Hardware
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--> Go to Part 4 : Formatting a Hard Disk
--> Go to Part 5 : USER areas
--> Go to Part 6 : MASMENU - Master Menu
--> Go to Part 7 : Terminal
--> Go to Part 8 : KayPLUS ROM
--> Go to Part 9 : Advent TurboROM
--> Go to Part 10: Multicopy Plu*Perfect
--> Go to Part 11: The Kay Family & Company
--> Go to Part 12: Kaypro Design Views
--> Go to Part 13: Micro Cornucopia
--> Go to Part 14: Repairing a Kaypro II
--> Go to Part 15: Kaypro Collections
--> Go to Part 16: Kaypro General
--> Go to Part 17: Kaypro Robie
--> Go to Part 18: MFM-Emulators
--> Go to Part 19: Roadrunner ROM
--> Go to Part 20: Software
--> Go to Part 21: FAQ
--> Go to Part 22: Kaypro Virtual
--> Go to Part 23: Formatting a Floppy Disk
--> Go to Part 24: ROM, EPROM
--> Go to Part 25: Kaycomp