Corp, San Jose, has given up on its 64-bit minisupercomputers, aborting the development programme for its 6460 processor and putting the rest of the hardware business onto a care-and maintenance basis. Over half the workforce is being laid off as the company cuts back to a software business. It is retaining a software development group in the hope of being able to capitalise on its extensive experience in running multiple operating systems, including its own proprietary Embos software, in a single computing environment. The group will explore converting Elxsi’s operating system software to an industry standard machine that will protect its customers’ investments in application software. A key feature of the Elxsi operating environment is a VMS shell option that gives a familiar look and feel to DEC VAX users. Apart from the software, the company’s activities will be centered on its on-going customer support and maintenance business and manufacturing of additional Model 6000 and 6400 Systems to meet the requirements of existing customers 100 are currently installed. Manufacturing for support of customer needs will be provided by Elxsi’s Singapore-based affiliate, the Tata-Elxsi joint venture among Elxsi, India’s Tata Group of companies and the government of Singapore. Tata-Elxsi maintains an inventory of key components for Elxsi systems and has manufacturing rights for Elxsi products, and manufacturing in San Jose will end. The company’s turnover is currently running at $5m a year and the company, originally rescued when it was bought by Trilogy Ltd, which had cash but no products, has run out of cash again and is seeking additional finance, and also hopes to raise cash from assets no longer needed. Elxsi warns of a substantial net operating loss on $2.8m sales for the June 30 period.
