All American signs NexGen

Electronic News, June 12, 1995 by Bernard Levine

MIAMI -- All American here has been signed as the first industrial distributor for NexGen, and has begun carrying the Milpitas, Calif. firm's Pentium-rival Nx586 micro-processor and other products.

All American said last week it has entered into a non-exclusive distribution agreement with NexGen to distribute its line of high-performance processor products, allowing the distributor to offer x86 products for the first time. "We are very excited about it," noted Bruce M. Goldberg, All American president/COO. "We have products available and already have sold quite a bit."

The deal is a "milestone" for All American, Mr. Goldberg added. "We are proud to be the first industrial distributor to carry NexGen products. To date we have not been able to offer our customers x86 microprocessor products, thus this opportunity represents a major milestone for All American. We believe that NexGen is the first company to provide mainstream PC manufacturers and users with 5th generation power and full x86 binary software compatibility at a lower chip and system cost than Pentium processors and Pentium based systems.

"Industry analysts generally estimate that one-third of the worldwide semiconductor output is consumed by PC and PC-related products. Thus, this opportunity with NexGen could open significant new marketplaces for All American. We also expect that this will create opportunities for our company to attract additional suppliers that make products that support the microprocessor functions."

At NexGen, Dana Krelle, VP of sales and marketing, said that to serve the "expanding marketplace," it now "makes sense to add industrial distribution channels." NexGen also sells product through several companies "that distribute motherboards and bare systems. Some also operate as VARs," Mr. Krelle said. They include Aquarius in Germany, as well as U.S.-based Fountain Technology, Pony International and American Digicom.

Asked if other industrial distributors might be added, he replied that is "possible," but "there are no definite plans. We are very happy with All American, a high quality organization, with national coverage and a high quality sales force. We are very, very pleased to have them on board with us."

NexGen's president/CEO, S. Atiq Raza, claimed the firm "is the only company in the world that presently has available a microprocessor that provides compatible performance to similarly configured systems based on Intel's most advanced processor, the Pentium. We are excited to have All American as our first industrial distributor. All American has proven distribution capabilities and, with their OEM sales expertise, 20 offices in the U.S. and salespeople across North and Latin America, we expect that All American will assist NexGen in reaching a substantially expanded base of customers that could utilize our quality products."

And All American is expanding to support NexGen, according to Mr. Goldberg. "We are putting in a lot of resources to support this line, including a telemarketing group specifically for NexGen," although All American may later add products from other suppliers for the telemarketing group. "We are also hiring people in each of the major MPU markets specifically for supporting NexGen," and "we are having training of our entire sales force across the country. We will expand our Technical Sales Engineer program, looking for a director for TSE (to take national responsibility)."

Meanwhile, All American also said last week it has commenced a public offering of 4,550,000 shares of its common stock (excluding the over-allotment option) at a price of $1.875 per share. The offering is expected to close on June 15, 1995. Copies of the prospectus relating to the offering may be obtained by contacting Lew Lieberbaum & Co., Inc.

The net proceeds of the offering of approximately $7,250,000 will be used initially to reduce the company's line of credit pending its use for continued expansion of the company, including opening new sales offices, inventory diversification and general working capital.