Datanetics History (1967–1979)
In March 2016, Meryl Miller provided a copy of his typewritten notes summarising the history of Datanetics from its founding in 1967 through to the sale to ITT in 1979. Meryl himself left in November 1978 to join Duralith (later Lucas Duralith), before retiring in 1991. This document is transcribed below in its original formatting:
Datanetics History
1967
- Incorporated 1967. A team of engineers developing a CRT to enter the fast growing terminal market - were acquired by Dielectric Systems.
1969
- December - scrapped the CRT and decided to enter keyboard market with unique diaphragm type keyboard that was developed as a companion product for the CRT.
1970
- Sales $365K - basically two customers encoded terminal type keyboards.
1971
- Sales $795K.
- Were chosen to build keyboard for Monroe, the Calculator Company's first electronic printing calculator - Model 1200.
1972
- Sales $1.34 Million.
- Majority of sales were calculator keyboards to Monroe and Computer Design Corporation.
- Recognised need to broaden customer base. To do so we needed a discreet unit switch. Started design on DC-50 unit diaphragm switch.
- Licensed Futaba in Japan our technology for the elastic diaphragm switch concept.
1973
- Sales $2.3 Million - 95% Monroe.
- DC-50 unit switch fully introduced. Monroe was our main customer.
- Proxy fight DNC sole surviving company.
- Introduced DC-60 low profile switch designed to meet declining prices for high end calculator market. Mainly for Monroe.
- Qualified as a supplier for N.C.R. (DC-50).
1974
- Sales $2.6 Million - 96% of business was with Monroe.
- Monroe hit hard by recession, placed all orders on hold, except new 1400 calculator.
1975
- Sales $1.3 Million - our plan for 1975 was to survive.
- Lost Monroe business to Japanese.
- N.C.R. and Burroughs France became our largest customers. Customer base was rapidly broadening.
- Decided to build up and sell on the upswing.
1976
- Sales $2.5 Million.
- Customer base broadened rapidly in both DC-50 and DC-60 business.
- Overseas business was growing, picked up Hugin in Sweden as large customer.
- Shipped first keyboards to Apple - May, 1976.
1977
- Sales $4.06 Million.
- Customer base still growing.
- Pressure from shareholders to sell, so they could achieve liquidity, mounted.
- Hugin, in Sweden, number one customer.
- Started design of DC-70 concept late in year, to meet the coming price erosion in the terminal market.
1978
- Sales $4.6 Million.
- Acquisition activity strong - lots of lookers - no buyers.
- Engaged Hambrecht & Quist to handle the acquisition. The acquisition was consuming the top management of the company.
- Unable to adequately finance growth - had serious cash flow problems.
- Business very strong - Customers: Hewlett Packard, Perkin Elmer, Apple Computer, Beckman, T. I., Sycor, and N.C.R.
1979
- Sales $7.2 Million.
- Signed Letter of Agreement with ITT - January 3.
- Bookings soured - cash flow problems were hampering our ability to ship in a timely manner - past dues grew.
- June acquisition complete with ITT.
- Cash flow problem solved.
Source material
For authenticity, Meryl’s original material is also available.
- Datanetics History (1967–1979), Meryl’s scans converted to PDF