Teradata investors come out winners in AT&T buyout offer.Long-term shareholders of Teradata Corp. must have beamed last week. American Telephone & Telegraph Co.'s $520-million buyout offer proved again that, while computer company shares often are volatile, they still can pay off big in the end. Only 13 months ago, Teradata shares traded for $9. Last week AT&T bid $30.25 a share in a stock-for-stock deal. That puts the El Segundo El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and company among the ranks of other promising medium-sized computer companies -- like Seagate Technology (company) Seagate Technology - A major manufacturer of hard disk drives, founded in 1979 as "Shugart Technology" by Alan F. Shugart and Finis Conner. That name is on the original patents for the 5.25" hard disk drive. and VLSI VLSI: see integrated circuit. (1) (Very Large Scale Integration) Between 100,000 and one million transistors on a chip. See SSI, MSI, LSI and ULSI. (2) (VLSI Technology, Inc., Tempe, AZ, www.semiconductors. -- which have recent high-low ranges on the order of 3:1. Teradata's low share price last October coincided with reporting its first quarterly loss in four years. Expenses and staff were cut. Since then, three successive quarters of rising profits and record full-year revenues of $258 million still, however, produced a full-year loss of $2.4 million. Amid mixed results and no earth-shaking product announcements, analysts have attributed Teradata's stock-price jump to its steady pioneering of a technology called parallel processing parallel processing, the concurrent or simultaneous execution of two or more parts of a single computer program, at speeds far exceeding those of a conventional computer. , which strings together microprocessors in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem for big data-crunching jobs. And there was its increasing coziness with AT&T, which has provided 25 percent of Teradata sales, on average, since fiscal 1989. A joint development with AT&T's wholly owned NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers Corp. unit brought the pair together intimately, sharing technology and marketing rights to the fruits. Although NCR holds just a 9.4 percent stake in Teradata, their joint development "is expected to serve as the foundation" for Teradata's future systems, according to company statements. Likewise, NCR expects its future "high-end" general-purpose computer systems to come from the 20-month-old Teradata venture. The merger will give Teradata "access to necessary financial, marketing, distribution and sales resources as well as access to general-purpose computing and communications technologies," said Teradata Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Kenneth W. Simonds. The merger needs approvals of both companies' shareholders and the Securities and Exchange Commission, which should take several months. |
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