HAPPY 20Th ANNIVERSARY
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HAPPY 20th ANNIVERSARY A newspaper for Memorex people everywhere Volume 18 #2 February 1981 "Pioneers" recall the early days The pioneers of today's Memorex Cor- poration were skilled, determined and resourceful people who joined forces to undertake an exciting and demanding task. Eric Daniel was Memorex's original director of research, and is now manager of Consumer Products Group Research and Development. He managed the Magnetic and Chemical Technology Center from its inception in 1978 until his promotion this year to his current position. Daniel is one of two employees who have the title of Memorex Fellow, the highest distinction the company can bestow upon technical personnel. "The early years of the company were very exciting," according to Daniel. "Everyone was involved with everything then—the group was so small." Memorex was "like a small family at the start," Carl A. Anderson said. Anderson, a certified public account- ant who was Memorex's first controller, retired from the company in 1974, but continues to serve Memorex as a part- time consultant. In its earliest days, Memorex occupied temporary office space in a building on Scott Boulevard in Santa Clara, and over Fifteen Memorex pioneers assembled in front of this early company facility for a group photograph in 1961. The prototype a furniture store in Mountain View. While for Memorex's first precision tape coating line was built in this building in Mountain View while the company's first awaiting development of its first plant at plant was being built in Santa Clara. 1180 Shulman Ave. (later renamed Memorex Drive) in Santa Clara, Memorex occupied temporary quarters at 2000 El Memorex marks 20 years of excellence Camino Real, Mountain View. Memorex employees around the world expertise in a new product field, the it is interesting to note that the company It was in the building at 2000 El Camino will celebrate the company's 20th design and manufacture of disc packs. did not even enter that field until 1970, that the company built its prototype corporate birthday Feb. 9. Memorex's first disc packs were nearly a full decade after the founding of magnetic tape coating line. The juxta- position of that early coating line and the The two-decade milestone in the introduced in 1967, the first year in which the corporation. That year, Memorex office space in those close quarters had company's history will be celebrated with discs outdistanced computer tape in introduced MRX, its first high-fidelity some memorable results, Anderson special observances and programs dollar sales volume. audio tape for cassette and open-reel recalled. throughout 1981, according to C.W. Memorex's enterprise in disc pack recorders. "We all had red dust on our shoes from Spangle, chairman and chief executive technology was one of several factors In November, 1970, Memorex began officer. which spurred the company's first entry using the "shattering glass" advertising the magnetic coating material," he said, Memorex, now a worldwide, high- into the equipment manufacturing field. campaign which remains basically un- "but nobody minded." technology information storage and Another factor was the company's need changed to this day. Ella Fitzgerald, the Continued on page 4 communications company, was founded for a disc drive to serve as a super- "first lady of jazz," first appeared as a in a leased garage in Mountain View, accurate testing device to detect the spokesperson for Memorex in 1973. California, in 1961. The founders- slightest flaws in our media. The innova- Those advertisements helped make Laurence L. Spitters, Arnold T. Challman, tive drive designed to fit the bill was Memorex a "household word." Memorex reduces Donald F. Eldridge and W. Lawrence marketed shortly thereafter to OEM Memorex decided to enter the Noon —had resigned during the previous customers as the Model 610. In 1969 the international marketplace in 1964, quite quarterly loss December from Ampex Corporation in Model 630 was marketed to IBM 360 early in the company's history. When one Redwood City, California. users. considers the scope and significance of For the first time in its twenty-year history, The four founders were dedicated to It was not long before the company was Memorex's international operations Memorex Corporation recorded revenues the pursuit of excellence—a concept as heavily involved in peripherals as in today, the importance of that decision is in excess of $200 million for one quarter, which continues as the core of the media. Memorex could exercise far more readily evident. The initial thrust abroad reporting revenues of $208.2 million in company's philosophy today. When they control over its destiny in the marketplace was a modest one. At first, the company the fourth quarter of 1980. established the company to produce because it manufactured its own media, exported products directly from Califor- This record revenue notwithstanding, precision magnetic tape, they named it heads, test equipment, mechanical nia. The first Memorex employee to work the company reported a net loss of $2.8 "Memorex," a contraction of the words assemblies and plastic components. It overseas operated out of his home in million (48 cents per share) for the "memory" and "excellence." could also react quickly to potential England. He secured the first European quarter. Memorex started with only 24 shortages and production bottlenecks, customers for Memorex magnetic tape— C.W. Spangle, chairman and chief employees in addition to the four allowing the company to anticipate and the British Broadcasting System and ICL, executive officer, said, "While the founders. Less than two years after manage change. a major computer manufacturer in company reported a loss, the fourth incorporation, the company built its first The manufacturing of disc drives Europe—in 1965. quarter results do reflect the second plant at 1180 Shulman Ave. in Santa provided the foundation upon which Memorex, unlike many American consecutive quarter of improved Clara, California. That street, then Memorex built several other, major companies which do business outside of performance. surrounded by the hayfields of an area equipment businesses. the United States, relies heavily on host- "We have made substantial progress in destined to become known as "Silicon In 1969, Memorex entered the country nationals to lead and carry out its asset management," he continued. "Most Valley," was later renamed Memorex computer subsystems market with the international operations. In fact, fewer encouraging was the approximately $20 Drive. That same year, Memorex 1600 Computer-Output-Microfilm printer than 50 of the 2500 people employed by million reduction in gross inventories and introduced its first precision magnetic system, and began manufacturing data Memorex outside the United States are approximately $6 million increase in tape for computer use. communications equipment on a large U.S. citizens. cash, net of new borrowings," during the Having mastered the exacting pro- scale, starting with the Model 1270 Today, the company has production quarter. cesses involved in producing precision communications terminal control unit. facilities abroad in Liege, Belgium; in This was Memorex's first positive magnetic computer, instrumentation and While Memorex is best known to the Clondalkin, Republic of Ireland; Nogales, quarterly cash flow from operations since video tapes, Memorex began to apply its general public for its consumer products, Continued on page 4 late 1977. Computer Media Group forms new organization Memorex's Computer Media Group has CMG sales Rookie of the Year in 1979. formed a Field Training and Marketing Peterson joined Memorex as a sales Programs Department under the direction representative but was most recently of Jim Coccara. Coccara will report to manager of Sales Development and Harry Fekkes, vice president of CMG Training. Marketing. Stroebel also comes from the CMG Coccara started with Memorex as a sales force, beginning as a sales sales representative in the Los Angeles representative and recently promoted to region, and was most recently region senior account representative. He was manager for CMG End-user/Distributor recently named 1980 CMG Salesperson organization. In 1979, he was named of the Year. CMG national sales Manager of the Year. Joining Coccara in the new department will be Jim McLeaster, Fred Peterson and Charter members of the Memorex Speechmasters hold their second meeting at the Bob Stroebel, who will serve as Field Education Center in Building W. Toastmaster of the day Dan Scott, supervising Training and Marketing Programs senior auditor, Corporate Audit, acknowledges a comment from the table during managers for the central, western and Table Topics. The group is generating a lot of interest among employees. eastern areas respectively. McLeaster joined Memorex as a senior Speechmasters sharpen account representative and was named communication skills Mercantile slashes Toastmasters International is enjoying a members are called upon, they need not prices during sale surge of interest in the Santa Clara Valley know the facts on a particular issue. They The Memorex Activities Group (MAG) recently, and Memorex employees can invent statistics. "It's not what you're Mercantile is reducing its employee interested in building better communi- saying, but how well it's organized and discount prices even lower in a special cation skills are forming a charter group, brought across," says Mateas. sale through February 24. the "Memorex Speechmasters." The Memorex Speechmasters will be As an example, 45-minute MRX3 Toastmasters International is a meeting every Monday at noon at the cassettes which sell in stores for $2.99 nonprofit, educational organization, with Educational Center in Building W are usually $2.10 through the MAG 4,000 clubs around the world. It provides Memorex Drive, with the exception of mercantile, but for this special sale they Mody discovers members with a professionally designed March 2 and 9, when they will meet in the are just $1.55 each.