NETWORK COMPUTING DEVICES, INC.

NETWORK COMPUTING DEVICES, INC.

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Company Overview
Network Computing Devices Inc is an American company which is engaged in developing and production of thin client, a client software that conveys input and output between the user and the remote server. It was established in 1987 by Mike Harrigan, Doug Klein, Ed Basart, Dave Cornelius, Martin Eberhard and Kevin Martin. The company’s corporate headquarters is located in Portland, Oregon.
NCD’s X Protocol products provides high resolution images of data and graphics over a network connection. The company also supports a wide range of network protocols including Token-Ring, a local area network technology and DECnet, a suite of network protocols that connect two minicomputers.
Business Summary
Network Computing Devices, Inc. (with its consolidated subsidiaries, NCD) provides thin client hardware and software delivering simultaneous, high-performance access to all of the information on enterprise intranets and the Internet from thin client, UNIX and personal computer (PC) desktops. The Company’s hardware product lines include the NCD NC900 network computers. On the software side, the Company offers the NCD ThinPATH family of client and server software, developed to enhance the connectivity, management and features of the NCD thin clients, as well as PCs, in accessing information and applications on Windows servers.
Description and history
Network Computing Devices, Inc. (with its consolidated subsidiaries, NCD), incorporated in February 1988 and reincorporated in October 1998, provides thin client hardware and software delivering simultaneous, high-performance access to all of the information on enterprise intranets and the Internet from thin client, UNIX and personal computer (PC) desktops. The Company’s hardware product lines include the NCD NC900 network computers. On the software side, the Company offers the NCD ThinPATH family of client and server software, developed to enhance the connectivity, management and features of the NCD thin clients, as well as PCs, in accessing information and applications on Windows servers.

On March 26, 2002, NCD disposed of its ThinSTAR Windows-based terminal product line to Neoware Systems, Inc. (Neoware) in accordance with an Asset Purchase Agreement between NCD and Neoware. The assets disposed of consisted principally of customer records, the ThinSTAR trademark and other intellectual property, as well as contract rights used in the business of designing, developing, manufacturing, distributing and selling the Windows-based terminals marketed under the ThinSTAR brand name. The ThinSTAR product line will continue to be available from NCD in Europe, the Middle East and Africa (EMEA) under an original equipment manufacturer (OEM) agreement with Neoware. NCD will continue to sell the ThinSTAR product line in the EMEA until such time that Neoware exercises its option to acquire additional assets relating to NCD’s European operations. NCD will also continue to provide worldwide service and support for the ThinSTAR product line.

Software Products

The Company offers the NCD ThinPATH family of client-based and server-based software products that deliver capabilities that are important to enterprises deploying the emerging server-based computing model. The series of software modules allows Windows-based terminals and PCs to emulate virtually any desktop device so that they can access any server on the network, regardless of its operating system. This software is designed to make centralized management and support of the network easier, and to permit support of local printers and other peripheral devices on Windows-based terminals and PCs without adding protocol software to Microsoft’s terminal services.

The Company’s NCD NC900 products run NCD NCBridge, which runs on the WindRiver VXWorks operating system. The NCD NC900 incorporates extensive enhancements to the basic X server software to improve performance, system manageability and robustness.

NCD PC-Xware is software for Windows PCs that provides connectivity to X Windows applications running on UNIX host systems. The Company offers versions of NCD PC-Xware for the full range of Microsoft Windows corporate desktops.

On March 27, 2002, the Company announced its newest software product, NCD ThinPATH PC client software, which is designed to manage PCs as thin clients. The dedicated user interface makes it simple for users to access applications, but it also protects the PC from unapproved desktop changes. NCD ThinPATH PC is intended to provide a cost-effective migration strategy for using existing PCs as a transition toward server-based computing with applications that are available from Microsoft Terminal Services, Citrix MetaFrame or a Web server.

Hardware Products

Historically, the Company has offered a broad line of thin client products to provide businesses and other enterprises with an open systems approach to network computing based on its Network Computing Architecture. Its thin client devices included NCD ThinSTAR Windows-based terminals and NCD NC900 network computers.

The Company’s thin client products are desktop devices that are used to access information and applications residing on computer servers in a local area network or wide area network. The thin clients were initially introduced to access UNIX applications; later the software was added to allow these same devices to access mainframes and other non-UNIX servers. With the growing popularity of Windows environments, the Company introduced the NCD ThinSTAR Windows-based terminals and NCD ThinPATH software to optimize access to networked Windows NT servers. Although the Company sold this product line to Neoware, it is continuing to sell these products in the EMEA pursuant to an OEM agreement with Neoware.

The Company’s NCD NC900 is a high-performance network computer that is targeted at customers that want browser access to the network or that have requirements to access X11 applications on UNIX servers. In June 2000, the Company introduced the NC900 to be a replacement and upgrade for its earlier X terminal and NC products. This product is intended to consolidate and simplify the Company’s NC product offering while providing improved performance to the user. The NCD NC900 is based on powerful MIPS processors.

Service and Support

NCD maintains in-house repair facilities and provides telephone and e-mail access to its technical support staff. The Company’s worldwide technical support engineers not only provide assistance in diagnosing problems, but also work closely with customers to address system integration issues and to assist customers in increasing the efficiency and productivity of their systems. The Company provides system-level software support at no charge to the customer through its factory-based technical maintenance organization and field system engineers, and also offers software update services that allow customers to purchase subsequent releases of its software products. GM3, a European service organization, provides repair services for the Company’s European customers. Cybersource, an Australian service organization, provides certain repair services for the Company’s Australian customers.

The NCD PC-Xware software products face direct competition from several software companies that offer similar products, including Hummingbird Communications, Ltd., a Canadian company; Visionware, a subsidiary of The Santa Cruz Operation, Inc.; NetManage, Inc., and Walker, Ritchie, Quinn, a privately held company. The NCD NC900 family of products face direct competition from PCs that run a local X server such as those from Hummingbird Communications, Ltd.

Established by Mike Harrigan, Doug Klein, Ed Basart, Dave Cornelius, Martin Eberhard and Kevin Martin

Business Line
Engaged in developing and production of thin client, a client software that conveys input and output between the user and the remote server
Subsidiary

Advisor
BDO SEIDMAN
IPO date
6/1992
US SIC Code
3575
Company Address
10795, SW Cascade Boulevard

City province or state postal code
97223, PORTLAND, OR
Phone: +1 503 431 8600
Fax: +1 503 639 2003
Country address: UNITED STATES OF AMERICA
Website url: www.ncd.com