Trilogy agreed in principle to merge with ELXSI.

Under terms of the agreement, the Cupertino, Calif.-based company would issue about 38 million shares of common stock to holders of ELXSI, a privately owned company that develops and makes large computer systems for the engineering and scientific market sectors. As a result, ELXSI holders would own just under one-half of the combined companies. A Trilogy spokesman said the merged company would probably be called Trilogy, with ELXSI operating as a subsidiary.