Mylex Corp has confirmed that it is to close down its Network Power & Light thin client division (CI No 3,460). The Fremont, California-based RAID controller company, which yesterday reported a net loss of $1.4m for its second quarter, on net sales of $26.9m, announced a 7% reduction in its workforce affecting 27 people earlier this month (CI No 3,450), and subsequently decided to close the NP&L division, affecting another 20 jobs. NP&L was formed in 1996 to develop thin-client software for use in low- cost network file servers. But, said Mylex president and CEO Al Montross, recent market changes, specifically improvements in PC server manageability and a precipitous drop in retail prices, would have required the company to incur substantial additional development expenses to be competitive in this market. He said that Mylex now wanted to focus on its core RAID controller business in order to make its near-term profitability goals. Sales for the quarter were up 19% compared with the same period last year, but higher than anticipated litigation expenses and the settlement of a claim against the company led to the larger than expected loss. Net loss for the six months was $4.0m, compared with a $4.2m net loss during the first six months of 1997.
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