IBM Corp’s IBM Personal Computer Co is bailing out its server partner, Mountain View, California-based Parallan Computer Inc, putting up $2.5m in funding to pay for an extension of IBM’s exclusive marketing rights, pre-payment of some royalties, the performance by Parallan of development projects and payment for prior development work; it says the payment may enable it to post near break-even results for the 1994 first quarter, but that the royalties based on IBM sales are not currently sufficient to sustain it on a profitable basis, and it is cutting its workforce by 25% this month as part of a restructuirng to cut operating costs.
