Article Abstract:
Cray Inc. ended a five year-year legal dispute with NEC of Japan, which had resulted in antidumping duties that kept advanced Japanese machines of the U.S. Cray agreed to drop the charges in exchange for NEC investing $25 million Cray and giving Cray the exclusive rights to market NEC machines in the U.S. Critics of antidumping laws argue that the case of Cray shows that prohibiting competitive imports hurts innovation in the U.S.
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Article Abstract:
NCR Corp is involved in a law suit with Cleveland Electric Illuminating Co concerning a contract to computerize Electric's emergency dispatching system. Electric's lawsuit, filed in December and claiming $2 million in damages, claims that the system was liable to crash at any time and was eventually taken out of service after two years. The damages sought are for the cost of the original system and the cost of the new system that had to be installed from Digital Equipment Corp. Computer analysts say that these sorts of litigations are unusual because computer companies can usually make the systems perform satisfactorily and have carefully worded warranties written into the contracts. NCR has since stopped marketing the system, although it does continue to service existing customers.
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Article Abstract:
Silicon Graphics acquires Cray Research for a combined $739.2 million in stock and cash options, strengthening the company's position in the high-end workstation market. Silicon Graphics will now generate nearly $4 billion in annual revenue with the acquisition, third only to Sun Microsystems and HP in the competitive workstation market. The acquisition improves Silicon Graphics' leverage in the commercial marketplace and increases the company's market share for computers costing over $100,000 to 50%. Analysts suggest that Cray had little alternative but to sell to the highest bidder, since the company's margins, as well as those of the entire supercomputer industry, have been steadily shrinking for years. Company officials predict the deal will be completed by Apr 1996.
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