Kaypro Drops 4 Models in a ‘Streamlining’ Move

In a product consolidation move designed to generate “improved products with lower prices,” Kaypro Corp. on Monday said it will stop producing four models of its computers in an effort to “streamline ordering, production and shipping.”

Kaypro also added a hard-disk version of its 16-bit Kaypro PC to “round out its line of IBM-compatible desk-top business computers.”

“They’re getting out of everything but the IBM PC XT-compatible market,” said Michael Murphy, editor of the San Francisco-based California Technology Stock Letter. “They’re doing what I’d be doing if I were them.”

Last month Kaypro reported a $2.5-million net loss and a 44% drop in revenues to $15.5 million for the first quarter ended Nov. 29. The company reported a $15.5-million loss for the fiscal year ended Aug. 31.

The Solana Beach computer manufacturer has stopped manufacturing its eight-bit Kaypro 1 model but will continue to manufacture the Kaypro 2X, another eight-bit computer, which will be the company’s only eight-bit offering.

Kaypro will consolidate its IBM PC AT compatible 286i line by dropping two of the four versions it introduced last February. The consolidation will “give Kaypro customers a solid line of computers ready to run today’s memory-hungry software,” company officials said.

The 286i consolidation was forced by Kaypro’s failure to win scarce space on dealer’s shelves, Murphy indicated.

“They’re up against Compaq, Leading Edge and Epsom; it’s a price-competitive game, and everybody’s playing it,” Murphy said.