NEC SIGNS SUPERCOMPUTER DISTRIBUTORSHIP PACT WITH CRAY.
The main contents of the distribution agreement are as follow:
1. The agreement gives Cray exclusive rights to distribute the NEC SX-5 Series and successor vector supercomputers in North America and non- exclusive rights in the rest of the world. Cray will resell these supercomputers as one of its product lines exclusively in the US, Canada and Mexico. After confirming that it is permissible under applicable antitrust laws and regulations, Cray will sell NEC's high performance supercomputers in Europe and other areas under the non-exclusive right.
2. NEC and Cray will cooperate to promote sales activities for SX-5 Series and its successor models.
3. In order to strengthen the relationship between the two companies in the field of supercomputers, NEC will invest $US25million in Cray's non-voting preferred stock.
In order to facilitate performance of this agreement, it is necessary to revoke dumping duties to Japanese vector supercomputers in the US and revocation of these dumping duties is a condition for effectuation of this agreement.
NEC announced its first SX Series supercomputer in 1983. The SX-5 Series, which is the current and primary model under this agreement, is the fourth generation product developed by NEC. Its peak vector processing speed is 5 TeraFlops (five trillion floating point operations per second) and it is the world's fastest vector supercomputer for commercial use.
The original Cray Research Inc. (CRI), founded by Seymour Cray, was a pioneering company in high performance computing. CRI was sold to Silicon Graphics Inc. (SGI) in February 1996; then acquired by Tera Computer Company in April 2000. Tera changed its name to Cray Inc. Cray will sell the vector supercomputer SV1 and SX-5 Series systems as well as other current Cray products.
Cray has in depth experience in marketing supercomputers worldwide. This agreement will combine NEC's technology with Cray's sales and support infrastructure. Cray will now be able to respond to customers requiring high-end vector supercomputers by filling an important gap in their product line. NEC expects to expand its sales through Cray's sales channel.
Since the sales rights will be transferred exclusively to Cray, NEC's current sales and support organizations, HNSX Supercomputers Inc., will be transferred over to Cray in the next 12 months.
For more information, call +44 (0)20 7853 5900 or E.mail: firstname.lastname@example.org.
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|Title Annotation:||Company Business and Marketing|
|Comment:||NEC SIGNS SUPERCOMPUTER DISTRIBUTORSHIP PACT WITH CRAY.(Company Business and Marketing)|
|Date:||Apr 1, 2001|
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