Origin Stories

How did a small and steady manufacturer of electronics instruments become one of the sensations of the micro-computer industry? Kay said he thought of getting into computers a decade ago when his main business, supplying instruments to the government and prime contractors, was fading and the minicomputer field was growing 35 percent a year. Keeping his head above water-NLS lost a half million dollars in 1973-'74, a big bundle for a small company-prevented Kay from making a move into the new field. They did begin a series of moves that led to their being in good position to produce the KAYPRO. The first was to switch their product and market from the expensive military-industrial instruments to very small, inexpensive ones for the broader market. The second came when Kay got the computer itch again about five years ago and hired back a fellow MIT graduate and former employee to explore how they might start producing computers. His analysis showed they could probably make them, but would have trouble selling them. So instead they opted for a new, compact instrument that would use a micro-processor chip on which they would pack more measuring capability than segment missing (San Diego Magazine, May 1983)