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Computer peripherals industry

Network Computing Devices Acquires Tektronix's Network Displays Unit

Strategic Insights

— 1 min read

Network Computing Devices Inc. has completed the acquisition of the Network Displays business unit of Tektronix Inc. in a move that will enable NCD to "restore profitability" and become the leading producer of thin client hardware and software. The acquisition is expected to add approximately 40% more revenue to NCD's annualized basis without significant increases in direct cost, overhead, or technical support. With the acquisition, NCD solidifies its position as the No. 1 company in the thin client field, with the broadest product line in the industry, and is poised to meet the demand forecast by industry analysts for thin client solutions.

Key Takeaways:

  • NCD has acquired Tektronix's Network Displays business unit in a move to restore profitability and expand its product line.
  • The acquisition is expected to add approximately 40% more revenue to NCD's annualized basis without significant increases in direct cost, overhead, or technical support.
  • NCD is now the undisputed leader in the thin client field with the broadest product line in the industry.
  • The combined technical team and solid financial position will enable NCD to accelerate development of its thin client hardware and software offerings.
  • NCD's Installed base of over 1 million thin clients and over 3 billion hours of operation demonstrates its established position in the market.
  • The acquisition is a forward-looking move that positions NCD to meet the demand forecast by industry analysts for thin client solutions.
  • NCD's product offerings include the NCD ThinSTAR Windows-based Terminals, NCD Explora family of thin clients, and NCD ThinClient software for implementing thin client computing to a variety of enterprise desktops.
  • Robert G. Gilbertson, NCD's president and CEO, expects a continuation of recent quarter-over-quarter revenue growth in NCD's Windows-based terminals and other thin client lines.

Statistics:

  • Over 1 million thin clients installed by NCD, with over 3 billion hours of operation.
  • 40% more revenue expected from the acquisition, on an annualized basis.
  • 1 million+ thin clients sold by NCD prior to the acquisition of Tektronix's Network Displays business unit.
  • 3 billion+ hours of operation for NCD's installed base of thin clients.
  • NCD has a solid financial position with established revenue growth in recent quarters.

Sources:

  • Business Wire, January 4, 1999
  • Network Computing Devices Inc. press release
  • Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended

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