CompuServe Thread

The follwing information was contained in a FAX dated today (5/5/94), addressed to Canadian Dealers, from NewTek, Incorporated: ————————————————————– NewTek Incorporated May 5, 1994 Dear Friend of the Toaster, I'm sure you're aware of Commodore's recent announcement of their liquidation, as it is an issue of concern to everyone connected with the Video Toaster. Rumors have been rampant for weeks about what would happen, but getting the facts has been a little more difficult. We want you to know that we weren't caught by surprise. Events of the past nine months made it very clear that something would have to change and that Commodore;s liquidation was a possibility. It didn't take a mind reader to see Commodore's troubles. Liquidation certainlly wasn't the only possibility, however. Even as late as last week we were aware that other option were being pursued. While no one could know exactly what would happen, or when, we did know that something would happen and made plans for that eventuality. For reasons that we hope you will understand, we cannot talk about all of these things at the moment. What we can say unequivocally is that we are committed to the Video Toaster and our customers. We are taking the following steps in support of this goal: 1) Development of the Flyer is on schedule for shipment of demo units to dealers in July, and shipment to end users early fall. Of course, the Flyer provides capabilities highly sought after by the existing Toaster user base. 2) We are monitoring product availability in the channel and will provide you with all the information we can gather. As this point, is appears there are Amiga 4000's worldwide to meet demand for the next several months. 3) We will continue to market the Video Toaster and the Video Toaster Flyer as always. 4) We are investigating an Amiga refurbishment program. 5) We are continuing our ongoing Toaster development program. We realize that there are still a number of questions left unanswered, but now that as answers become available, we will pass the information on to you. A great deal of exciting development continues in Topeka and I believe you will be happy with the news coming from here as the year progresses. Sincerely, <Signature> Tim Jenison President ——————————————————————– Wednesday May 4, 1994 The Topeka Capital-Journal COMPUTER MAKER TO LIQUIDATE JENISON: LIQUIDATION NOT LIKELY TO AFFECT NEWTEK The parent company that makes the computer NewTek's Video Toaster runs on filed for liquidation in the Supreme Court of the Bahamas. But Tim Jenison, president of the Topeka based NewTek, said he's "cautiously optimistic" about the Amiga's future. "The biggest problem we have to deal with is people who think this is the end of the line for the Amiga," he said. "We basically are trying to reassure people that NewTek is not going away, the (Video) Flyer is on schedule and there are many other products in the pipeline which are not affected." Commodore International Ltd. announced late Friday that it planned to transfer its assets to "unidentified trustees" and has placed its major subsidiary, Commodore Electronics Ltd. into voluntary liquidation, according to the Associated Press. The company said it was in the initial phase of an orderly voluntary liquidation of both companies, which are incorporated in the Bahamas, by the Supreme Court of the Bahamas. Calls to Commodore Monday and Tuesday weren't returned. According to a fax sent by Creative Equipment International President Alex Amor to CEI dealers, the Commodore liquidation "won't affect the wholly owned subsidiaries, which include Commodore Business Machines (USA), Commodore Business Machines LTD (Canada), Commodore/Amiga (UK), Commodore Germany, etc." CEI is a Miami company which handles the majority of AMiga distribution in North America. The fax also said "CEI currently has sufficient Amiga inventory to meet expected demand until maufacturing resumes." In a phone interview Tuesday, Amor said the Amiga is a "long way from being dead." There's a user base of 7 million computers in the world, and the demand for the computers has gotten even stronger following Commodore's announcement. CEI is very interested in obtaining the manufacturing license for the Amiga, Armor said, adding that CEI could start manufacturing the product within a 60-day time frame once the license was obtained. He also said NewTek shouldn't be affected – there's a 120-day supply of Amigas on the market. "Ever since Commodore bought the Amiga back in 1987, most people think they've mismanaged it into the ground," Jenison said. "Almost any Amiga user could have told you 1700 ways they could have done it better. There's no love lost between the Amiga community and Commodore management." "Now it's just a matter of seeing which company or companies get the computer, get control of the technology. There are many players out there that have been waiting for this moment, a consortium of interested parties." Jenison wouldn't elaborate on NewTek's role, but said, "we're definately part of the stew." Jenison acknowledged there are at least three companies actively pursuing the Amiga, not so much for the computer itself, but for its chip set, for use in a kind of super cable box to connect with the information superhighway. The Amiga's basic technology is fully compatible with standard video signals. It's well-proven and de-bugged, and there's also a large group of experienced programmers, all of which make it a natural vehicle for the information superhighway, Jenison said. The Toaster takes of the lion's share of AMiga production, Jenison said, but he doesn't think another company will buy up that part of Commodore, and leave NewTek hanging. Although it's still early, Jenison said he believes there will be multiple technology licenses available from the trustees. Linda Windler, owner of Thoroughbred Computers in Topeka, also said she believes the Amiga still has a future. In addition to being the authorized AMiga dealer in Topeka, Thoroughbred Computers also sells IBM-compatible computers and manufactures software for them. "It's a good enough machine and particularly with the video market, someone's going to want it." Windler said. "When they liquidate, they're getting rid of everything of value." There was a shortage of Amiga monitors, but Jenison said that's been remedied. However, Y/C Plus, another Topeka company, has developed a $99 adapter, the YCP-GA, which allows the user to use other monitors, including television sets, in some cases, said Larry Heilman, president. The new adapters will be ready to ship in two weeks. Y/C Plus develops, manufactures and distributes video enhancement products, including equipment fo the Video Toaster. Paul Montgomery, Jenison's former partner and now president of PLAY, a San Francisco multimedia company, said, "It's a sad thing. The Amiga was the first computer to do multimedia, desktop video and stereo sound, right out of the box." He declined to speculate on hojw the move would affect NewTek. PLAY also includes five other former NewTek employees, plus some newcomers. ——————————————————————- the Service Management Group, Inc. May 2, 1994 The Service Management Group, Inc., a Maryland Corporation, today released the following statement: "Because of our close ties with Commodroe Business Machines, we feel the following information is important to our current customers and owners of Commodore equipment throughout the United Staes. The Service Management Group is not, and never has been, a part of Commodore Business Machines and is not affected by any Commodore decision regarding their status as a going concern. As of today, the SMG has no specific information that was not contained in the Commodore press release last week." "The Service Management Group is still doing business as usual. The SMG believes that its existing contract with Commodore remains in force and we will continue to be the sole authorized distributor for dealer support, service parts and warranty fufillment. We continue to sell parts and provide service for Commodore Products." "The SMG ProCare program remains in full effect. All SMG ProCare customers should be aware that we have an adequate supply of parts to provide support for all ProCare customers." "We are attempting to contact the Commodore trustees mentioned in the Commodore press release. Any long term questions about product warranty, parts availibility and plans for Commodore's future can only be answered by the trustees." "Questions regarding parts purchaes, availibility, depot repairs or help desk should be directed to the SMG Exten, PA office at (610) 363-4000. Questions about SMG ProCare contract availibility, dealer support or other coverage concerns should be direct to the SMG Columbia, MD office at (410) 992-9975." "Any questions regarding Commodore should be directed to Commodore." Paul Bielski, President the Service Management Group, Inc. ———————————————————————— The saga (has this actually qualified for official "saga" status yet?) continues… Trent/ReAnimators