|
i � : _ - r `} r , .4 a G t � .�''t ��i�'u'.y�.
<br />E t �' . 1 i�r�.� r� i.ra x.A�'ytsi
<br />. ' �'t 1 h � 5}
<br />' . . . . ' . ' t ` P
<br />� � . � � . � . � . � �� . � � � . � r�i
<br />� � � . � . � � � . � � � . . . � � . - � � � . � ��;.
<br />� . . . � � � . .. .. � � " �i � �.hr
<br />' - � . . . . .. . � . ' . . ' .. � . 'il�
<br />� � .. � � . .. . � . . � - 1 .. : 1 � . � .'f3..
<br />"� . . - . . . . .. ' � � . .. �.y 4:
<br />. :, . . . . . �..' . '.
<br />� � .�1 ' . . .�� ' - �;.,.
<br />, :_ . . .. .. . . . . ':�. . �:
<br />� . . . . . .. � � fi}�
<br />� . .. . � . .. . . . � . . � . � ' �.� �:
<br />. . . . . , . . � . . . . . .'�JT
<br />... . � . . � . � . . . . . . ;f
<br />' � . � . � � . . � � � . S.4 ::
<br />:.' . '. �.' ,: . ' . . . . . . . '
<br />,�^.
<br />� .'. . .. - . . . . . � ... ' ; .
<br />...�:�; , ...�.. �, .. ..... . . . . . . . . . . ... . . ., , '. •. �' I
<br />f,
<br />; ., ;.. . . ... . � ' . .. � . � . . . . . . . .. : .., ,
<br />Z,
<br />. :.� � �. " . ' . - � . . . . . � . : .:.
<br />�r` �r;
<br />,:' �
<br />GontroI Corporation has begun to market E�zct�onic digital coxnputers ior >
<br />;' ' ;:.� au�omatic control in these fields. These computers are manufactured by
<br />` our` Compr�ter Division.
<br />.,
<br />,. � , . . -
<br />., , , : . ..: ,;;
<br />, ,. �., .
<br />' : N'�W.FINANCING A�iER YEAR END ;' ;
<br />`�n ` July 26; :1960, the Company, throi.gh an underwriting syndicate `
<br />' . m�naged by Dean VV�itter & Co., sold 125,�U0 shares of common stock. The `�%�
<br />,.: - _
<br />net proceeds tr� the Company from this underwriti�ig were approximately :
<br />j=- '�4;510;QOO. The proceeds were used to repay outst;�nding bank laans and �
<br />. ihe balance was added to i;he Company's general f.unds and is being used `
<br />�as- workin� ,capital and for other corparate puraoses. Your management �>
<br />�� believed this additional working capitAl ,�ecessa.ry to finance its expanding �
<br />� volume' of business and to provide flexib;lity in its operations. The Com-
<br />pany`has initiated a�ro�ram of leasin� aa well as sellin� its computers
<br />which requires a larger cash investment.
<br />.�
<br />' SP.ERRY .RAND LITIGAi'ION
<br />` A,s �reviously re�orted, legal action war� initiaic� by Sperry Rand
<br />, Corporatipn a�ais�s� Control Data Corporatir,n in the United S�ates Dis- �
<br />'trict Court:in Minneapolis during A.pril, 195F�. The action c�laiged that th�: �;
<br />�� � Connpany was using Sperry Rand trade secrets and seek�� an injunctia�� ��;;
<br />� against said use. The complaint gave only a vngue de�cription of the `'
<br />��f alleged trade secrets. In r.esponse to interrog�tcir��s �ied with the Cc►urt,
<br />5perry Rand furnished a list of se�rets which it believes that the G'om- ,
<br />� p�ny is using or proposes to use.
<br />' At a hearing on August 1, 196Q, Sperry Ran� muved `che Co���rt to
<br />T�� �- is�ue a tempoY•ary injunc�ion, enjoining the Company from (a) usi�_s� five
<br />- specific items aZleged to be t�ade secrets; (b) employin� any mar� per-
<br />sonn�l from Sperry RAnd; and (c) mergi�g with any competitor of 5�►erry
<br />]tand. The court allawed both parties to file briefs, but to date has nat rraled
<br />on the matter.
<br />.A� was st�,ted in our previpus t�nnual re�ort, "the Company is de� .:lo��-
<br />� in� equ?nrnen� which may compete wi�h certain items produced by Spsrry
<br />a
<br />'�° '�and, b�Xt.officers of �he Comgany balieve that thege developments will be ;
<br />� accomp'�ished a� a result of �he te�hnical abilities of the �ompany's engi- '`
<br />t�� r' �.neeririg argani�ation �,z�d not through tihe usa of Sp�rry Rand's alleged
<br />�'�: ; tr�de secret�." This heli�f stili pr�evails. -
<br />'} �+To d�te has U�en set for the trial of the case, although it i� antiei-
<br />' ' pated tha� triRl will b� held some time during the ��vinter of 1960-61.
<br />1 �2 . -
<br />„, �ur��� .
<br />"� While we exp�c� to have increaged compe�ition as mar� comp�nYes '"
<br />R ,. l
<br />enter th� ma�kets we aerve, we face �he fut�xe wi�h optimism. 4ux majar
<br />,' �rr�ar�et��.re�s are continuing� to cxpand as tha-tases of �electironic computers
<br />�; �� int;�ease. {�ur technical sta#� coiltinues to ,gro�w, our st�.les or�anization is
<br />��rpanding, �nd we ar� in a sti•ong �inancial position. These tac�ors add up
<br />f'` to contiz�u�d profitable �row�h far Cr►ntx�ol Data,
<br />,,�
<br />, ; -
<br />y�'.� . . . � � . . .
<br />i: ' ° � .
<br />_ �, �✓
<br />jA� ; ��� r ��,��
<br />n-,;. � . .. . . � . _
<br />��z! i '�� - �. . . . . - ' � - . .
<br />t� � } �� �. ..t � ��� . ,
<br />(�'�' � Y ��e �texii�b�r 1� I 196� �. William �. Narris, Presic�ent t,; �:;
<br />�t � � ,
<br />4 �i - . . . , . . ' . -_
<br />�.��:ti �� it/r )� ��� .. .. . � � . ' ' . . . ' � �'a��-'
<br />i,�� � '!�
<br />.P 5 . . . . . . . � . . . . � � . , . � . ' �, �'
<br />•�a,'� k e . . . � . . . � . � � � . � � . - �-�ri.
<br />r
<br />� �� s _ . . � � . . ,. , . . . . . . .
<br />� �n�
<br />v ,
<br />'i+tQ r �� : _ - � . . � . - c,
<br />��i`�. `�� � � � � �
<br />`�� � y y
<br />'.f.iV41 tA�\ �� 1 �� ' . . . � . ., � -,� Lf;..
<br />�-01 l 2i 1 � I V y � � . � ' � t
<br />+�f t t�i�. � .- ` F lt i • . ' ! ' . �i
<br />� �
<br />� K �
<br />t 1 ' � �
<br />��Z�� n�4i.�t ��l�r��� � � - L� �' � �
<br />�,Ff 41 d �fi � �� � � r i .t � . q . � � � � �� � �
<br />,,. N� j�,.;�y�p1.;,,a��ky�sr.. � r L .-}1. 7 t v..'
<br />�� � ei� ., t ^ �� � � ` - t f Si �. .� . � � �Z"i:s��+ �. 1 � i ��i�'i,�s �.�'i��ai-,� 1... �
<br />3��i.5b��ri�x.4d;��` Na;+�,e�vr,,n. ay 'i. !,�1 � � wal:t ."�. t,...,j S.. , , ,.�, t ,. .. .`� „ . . . .. _ — . —
<br />
|