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Archive Unit Will Put Focus on Software : Computers: Costa Mesa company’s new division is called a turning point. Employees will remain in their current workplaces in Orange County, Michigan and Florida.

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TIMES STAFF WRITER

In a shift that emphasizes computer software over hardware, Archive Corp. has formed a division to develop computer programs for the data-storage market, the company said Wednesday.

The division will combine the software development organizations from its different operating divisions, Chairman D. Howard Lewis said in a statement. The unit will be based in Lake Mary, Fla., where the company already has a subsidiary, Maynard Electronics. It will employ 100 people, none of them new hires.

“This is a significant turning point for the company,” said Thomas Gavin, vice president of investor relations. “One clear advantage this gives us is that customers will have the option of buying software only.”

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Archive, based in Costa Mesa, makes tape drives that back up data stored on computers in case the original material is destroyed. Lately, the company has introduced several software products that make its equipment easier to use. Gavin said that the software is typically more profitable than the company’s hardware, but he would not say how much it contributes to Archive’s annual earnings.

Analyst Steve DeLuca at Cruttenden & Co., an investment bank in Irvine, said: “There is a trend of companies going toward software to make profits and set themselves apart.”

Gavin said two industry giants have established relationships with Archive. Novell Inc., a Utah-based maker of software for networking operating systems, has selected Archive to produce storage software for its NetWare product line. And Microsoft Corp. in Washington has included Archive’s backup software in its upcoming Windows NT operating system software.

Gavin said that although the division will be based in Florida, the employees will remain in their current workplaces in Orange County, Michigan and Florida. He said there are no plans to consolidate them in Florida.

The division will be run by Robert Wight, vice president and general manager, who most recently directed the software development group at Maynard in Florida.

Archive’s far-flung software units were previously integrated into the different divisions that make product lines for specific markets ranging from minicomputer products to personal computers.

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