Kaypro KC1

Kaypro Corp. said yesterday it has clinched a $3.6 million contract for 8,000 low-end personal computers from a Minneapolis cable television shopping channel reputed to be one of the country's largest.

Company executives said previously that the order from Cable Value Network was the second largest in Kaypro's history.

Stars To Go Video Centers, a manufacturer of video rental systems, ordered $20 million of custom computers back in 1986 for use in STG's point of sale system, said senior vice president and chief financial officer Joseph Marcell earlier. But Kaypro delivered only $18 million worth after Stars To Go went bankrupt. Kaypro later reserved $2.1 million worth after being told that payment for systems delivered would be delayed. STG started making $25,000 monthly payments earlier this year, said Marcello.

Marcello characterized the contract with CVN, which sells hundreds of products far below suggested retail, as "the most significant thing to happen to Kaypro in terms of sales in years."

CVN ordered the MC-10, formerly called KC-1. Introduced only a few months ago, the MC-10 is a low-end personal computer with dual floppy disk drives and an 8088 microprocessing chip, said a company spokesman. It retails at $895 and has been likened by the company to the Kaypro II, the basic low-cost computer that built Kaypro's reputation in 1982.

The MC-10 is XT-compatible, and Marcello earlier quoted a report from CVN dated July 17 evaluating Kaypro's model as "14 times faster than the XT machine."

"Shipments of our MC-10 personal computer system to CVN will begin in about two weeks," said Andrew Kay, chairman and CEO. "CVN expects to begin its Kaypro sales program on its network of cable stations later this month."

Marcello indicated previously that CVN might also be interested in the KC-2, an AT-compatible machine with single hard disk drive retailing for $1,088.
(Lorain Parsons, San Diego Daily Transcript, Unknown Date)