Gores Says Encore Real-Time Business Is Growing

Computergram International, Jan 11, 1999

Gores Technology Group, which completed its acquisition of Encore Computer Corp's real-time business last week (CI No 3,570) says it's been running the business under a management contract with Encore since June 1. It will carry on the development and marketing of real-time systems for military aircraft simulators, utility power stations and rapid transport systems through a new GTG subsidiary, Encore Real Time Computing Inc.

Customers include Boeing, Northrupp Grummen, Lockheed, Raytheon and Consolidated Edison. Michael Oehler, president of the new company, claims that sales increased 20% over the previous six months and that it is now on a profitable track, generating positive net income in recent quarters. Gores typically invests around 20% of revenues in R&D for newly acquired companies. GTG says it's refocused the product line and fast-tracked several software project, and as a result is negotiating several large contracts that will have "significant impact" on sales and profits. It also solidified overseas operations and service capacity. Compro Computer Services Inc becomes its hardware service provider in the US.