With the demise of Axil Computers Inc imminent (CI No 3,437), you’d be forgiven for thinking this might be causing Data General Corp a few headaches. One of the bright spots in Data General Corp’s otherwise bleak third quarter was the performance and its Windows NT business, especially the eight-way AV8600 servers; they’re re-badged Axil […]
With the demise of Axil Computers Inc imminent (CI No 3,437), you’d be forgiven for thinking this might be causing Data General Corp a few headaches. One of the bright spots in Data General Corp’s otherwise bleak third quarter was the performance and its Windows NT business, especially the eight-way AV8600 servers; they’re re-badged Axil systems. However, the end of Axil doesn’t mean the end of the AV8600. DG says its original agreement with the Concord, Massachusetts-based Hyundai Electronics America Inc unit gives it the right to Axil’s intellectual property, including the Crossbar interconnect that’s supposed to be doubling in capacity to 16-way, as well as manufacturing rights. With the other Crossbar coalition partner, Hewlett-Packard Co also evaluating Intel Corp’s Corollary/Profusion interconnect, does anybody care about Axil’s fate? The company itself sure doesn’t seem to give a hoot. What there is of a management team left doesn’t want to reveal itself, and what remained of a team covering the retreat including VP marketing Bob Neilson, appears to have departed. Axil’s fate was sealed by the Asian financial crisis. Korean parent Hyundai’s Computer Systems Group has been folded into the chaebol’s Information Technology Division, and PC production is being phased out both in its home markets and in the US. An Axil spokesperson told us the company doesn’t want questions from anyone, including customers, and hung up.
Meantime, the 14% decline in Data General Corp’s third quarter product revenue to $254m (CI No 3,459) is attributed largely to the decline in sales of its Clariion storage products. Many OEMs, says Merrill Lynch & Co’s Steve Milunovich, have yet to ship DG’s FC5000 fibre channel storage and the two-month old RAID 5 fibre controller the in volume. Sales to its biggest Clariion OEM Hewlett-Packard Co were off 40%. AViiON server sales were flat year-over-year at $134m. The 70% fall-off in sales of Motorola 88000-based systems was veiled, he says, by a 40% growth in Intel servers, including a doubling of Windows NT revenue. Eight-way 8600 NT servers – see above – reportedly sold well. However, as we said yesterday, ccNUMA revenue was disappointing, increasing just $1m sequentially to $18m. Sales of the proprietary MV servers were down 70% while services and PC revenue was flat. The brokerage thinks DG’s coffers could be refilled depending on the outcome of DG’s lawsuit against IBM accusing use of DG technology in the AS/400. It thinks a fourth quarter profit unlikely and AViiON sales will continue along the horizontal line.