TANDBERG STORAGE ASA

TANDBERG STORAGE ASA

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Company Overview
Tandberg Storage ASA, with its registered head office at N-0411 Oslo, Norway, is an active publicly quoted company that is primarily engaged in the development and manufacturing of advanced data storage products. The group was established as an independent company in 2003, and was formerly a part of Tandberg Data ASA.
Tandberg Storage is a leader in advanced tape drive design and manufacturing, focusing on effective, low cost design solutions and high product reliability. The group offers high quality tape drives compatible with other systems, and also delivers solutions based on development of SLR tape drives to Tandberg Data ASA.
Tandberg Storage ASA’s strategy is to develop cost efficient and attractive data storage products based on accepted technological standards, to combine high quality, high performance, and short time-to-market with competitive pricing and effective solutions for customers, to sell their products through big, multinational OEM Partners, and produced by partners that uphold rigorous quality standards and competitive prices.
Business Summary
Tandberg Storage ASA is a company engaged in the development, production and sale of hardware for data storage products. The Company’s operations are primarily focused on development of tape drives within the Linear Tape Open (LTO) standard. The product range includes readable and writable tape stations and cassettes, which are marketed towards two key sectors: midrange and corporate. The Company has entered into a cooperation agreement with Lafe Peripherals International Ltd. in China for the production of LTO tape drives. LTO2 (second-generation Linear Tape Open) were released in September 2005. Tandberg Storage ASA is the result of the demerger of Tandberg Data ASA and has a 93.5% interest in its subsidiary, O-Mass AS, which develops read- and write-compatible technology for tape drives. The Company is headquartered in Oslo, Norway.
Description and history
Tandberg Storage ASA is a company engaged in the development, production and sale of hardware for data storage products. The Company’s operations are primarily focused on development of tape drives within the Linear Tape Open (LTO) standard. The product range includes readable and writable tape stations and cassettes, which are marketed towards two key sectors: midrange and corporate. The Company has entered into a cooperation agreement with Lafe Peripherals International Ltd. in China for the production of LTO tape drives. LTO2 (second-generation Linear Tape Open) were released in September 2005. Tandberg Storage ASA is the result of the demerger of Tandberg Data ASA and has a 93.5% interest in its subsidiary, O-Mass AS, which develops read- and write-compatible technology for tape drives. The Company is headquartered in Oslo, Norway.

History

Tandberg Storage ASA is global company, focused on development and manufacturing of advanced data storage products, based on the LTO standard. Tandberg Storage ASA was established as an independent Company on 22 May 2003. Tandberg Storage’s operations had previously been an integrated part of Tandberg Data which de-merged as per 1 October 2003. Tandberg Storage is building on the extensive technological development that has been conducted in Tandberg Data ASA and Tandberg Radio Factory the last 30 years. The main reason behind the de-merger was to allow the two companies to follow different R&D paths in storage technologies. Tandberg Storage would focus solely on R&D activities around advanced tape-drive technologies, while Tandberg Data would focus on R&D of complete storage and automation systems. The initial assets of Tandberg Storage were 37 employees from the R&D department of Tandberg Data as well as a 93.5% stake in O-mass AS. Tandberg Storage has been traded on the Oslo Stock Exchange since 2 October 2003.

When the company began its operation in October 2003 it was with a clear goal of developing a reliable, low cost LTO2 drive within a half height form factor. The underlying technology was partly developed prior to the start-up time; however, all the main building blocks for this tape drive had to be developed from scratch. A major portion of this development program relates to the mechanical development. Since LTO is a new type of tape cartridge originally introduced as late as in year 2000, it was necessary to design a complete new drive mechanism, focusing on reliability, low cost and compact form factor. The basic design concept was created fairly rapidly and demonstrated late December 2003; however, it was not until late June 2004 that the first complete prototype was available for testing. This included the complete drive mechanism as well as the electronics with the four new special design electronic circuits (ASICs) and some basic firmware (software to control operation).

The R&D group then fine-tuned the mechanism, the electronics and the firmware during the second half of 2004. A massive test program was initiated in October 2004. Verification testing with the LTO committee began in December 2004 and continued until 11 March 2005 when the committee announced that TST’s LTO2 drive had passed all necessary tests and was approved.

During the second half of 2005 the company spent a lot of resources on production, quality and yield improvements as well as cost reduction programs to ensure that the drive remained competitive in the market. At the same time, development on special interfaces (ADI and SAS) began. This work continued into 2006, with the ADI (Automation) Interface launched summer 2006. The SAS interface development has continued during second half of 2006 and a series of SAS drives are now undergoing final testing. In addition, an LTO1 version of the drive was developed and introduced to the market in Q1 2006.

The company began development work on a half height LTO3 drive second half 2005, focusing on the design of four new ASICs as well as improvements to special areas of the mechanical design. This work has continued during 2006 with all the new ASICs received during second half of 2006. New mechanical tooling was also developed during this period.

Today, the Company is based in Oslo with all administrative and R&D functions under the same roof. Of the 55 employees, 46 are directly involved in R&D, making the administration very lean. The production of tape-drives is outsourced to the Chinese manufacturer, Lafи Peripherals International, while Tandberg Data is responsible for all sales.

In Bankruptcy
Both Tandberg Data ASA and Tandberg Storage ASA have filed for bankruptcy in the Norwegian courts on Friday, April 24, 2009. Tandberg Data subsidiaries; Tandberg Data Corporation in the US, Tandberg Data Japan, Tandberg Data Singapore, and Tandberg Data in Europe will continue operation without interruption. Tandberg Data has been unsuccessful in repaying a lapsed loan from Cyrus Capital. As a result Cyrus Capital had no other option other than to enforce their pledges of their loan. As Tandberg Data did not have sufficient capital to repay the loan, it had no alternative than to file for bankruptcy for the holding company, Tandberg Data ASA and Tandberg Storage ASA.

As a result of the bankruptcy of Tandberg Data ASA, Cyrus Capital will acquire the assets of this company, including accounts receivables and inventory. Cyrus will be the biggest shareholder in the new company, TAD Holdings AS, which will act and own all the existing Tandberg Data subsidiaries and assets.

The shares in Tandberg Storage ASA delisted from listing on Oslo Bors with effective on 5 May 2009.

Was established as an independent company and was formerly a part of Tandberg Data ASA

Business Line
Engaged in the development and manufacturing of advanced data storage products
Subsidiary

Advisor
PRICEWATERHOUSECOOPERS AS
IPO date
10/2/2003
US SIC Code
3695
Company Address
Philip Pedersens Vei 1

City province or state postal code
1366, LYSAKER
Phone: +47 23 70 60 00
Fax: +47 23 70 60 01
Country address: NORWAY
Website url: www.tandbergstorage.com