Cardinal Technologies
American modem maker that expanded into graphics and PCs.
Cardinal Technologies, Inc., was an American computer company based in Lancaster, Pennsylvania. It focused on making modems for personal computers, along with other peripheral devices.
The company was founded in February 1987 by Harold Krall and seven others who had previously worked at RCA Corporation’s New Products Division in Lancaster. In 1986, General Electric completed its purchase of RCA and sold the New Products Division to Thomson S.A. of France. Krall and his former RCA colleagues negotiated to buy the Lancaster plant, its equipment, and associated liabilities from GE and Thomson for $4 million. They incorporated Cardinal from that plant, aiming to enter the fast-growing personal computer market of the late 1980s—a market GE and RCA had largely overlooked. While they planned to eventually build complete computer systems, they started by manufacturing modems.
Cardinal sold both external modems (in plastic cases that sat beside the computer) and internal ones (installed in expansion slots). Within three years, the company became a major player in the modem field, helped by OEM contracts with big computer brands. By the early 1990s, it also produced graphics cards, keyboards, and monitors. In late 1990, Cardinal introduced its first line of personal computers, the PC 10, an IBM PC compatible based on i386 and i386SX processors, meant to compete with IBM’s PS/1 and Apple’s Macintosh. In 1991, the company partnered with Fujifilm to develop the Cardinal SnapPlus, an expansion card for IBM PCs and compatibles. This card acted as both a character generator and chroma keyer, allowing users to superimpose digital graphics and text over a videotape feed from the computer and record it back to tape. It also let computers import photos from Video Floppy disks taken by early electronic cameras, like those Fujifilm had made in the 1980s and 1990s.
Cardinal turned its first profit in 1990, earning $600,000 on $33 million in sales. From 1991 to 1993, its Lancaster headquarters employed between 200 and 220 people. The company broke even in 1991 and posted a loss in 1992. Its modem business continued to grow, and by 1992 it was the second-largest manufacturer of fax modems in the United States, behind Intel.
Quick Facts
- Industry
- Computer
- Products
- Modems · Sound cards · Computer systems
- Founder
- Harold Krall
- Defunct
- 1997 · 03
- Fate
- Acquired by Hayes Microcomputer Products
- Parent
- Vulcan Inc. (50.35%)
- Num Employees
- 220 (1993, peak)
Facts from the source article.
Lore & Background
Cardinal Technologies was founded in February 1987 by Harold Krall and seven other ex-employees of the RCA Corporation's New Products Division research and development office and factory in Lancaster, Pennsylvania. In 1986, General Electric completed its acquisition of the ailing RCA Corporation, divesting RCA's New Products Division by selling it to Thomson S.A. of France. In 1987, Krall and several colleagues from RCA bartered for the acquisition of the Lancaster plant, its equipment, and associated liabilities from General Electric and Thomson S.A. for $4 million. The colleagues incorporated Cardinal from this plant, planning to manufacture complete computer systems but starting small by manufacturing modems for personal computers.
Cardinal offered both external modems (housed in plastic chassis beside the computer) and internal modems (attached to a computer's internal expansion slot). The company became a major player in the field within three years, helped by OEM contracts with major computer systems brands. By the early 1990s, the company also produced graphics cards, keyboards, and monitors. In late 1990, they introduced their first line of personal computer systems, the PC 10, an IBM PC compatible based on the i386 and i386SX processors, intended to compete with IBM's PS/1 and Apple's Macintosh. In 1991, Cardinal partnered with Fujifilm to develop the Cardinal SnapPlus, an expansion card that acted as both a character generator and chroma keyer for superimposing digital graphical and textual elements over a videotape feed, and allowed computers to import photographs from Video Floppy disks taken by early electronic cameras.
Cardinal turned its first profit in 1990, earning $600,000 on sales of $33 million. Employment at its Lancaster headquarters hovered between 200 and 220 workers from 1991 to 1993. The company broke even in profits in 1991 and posted a loss in 1992. Its stature in the modem arena continued to grow, becoming the second largest manufacturer of fax modems in the United States in 1992, trailing Intel. In September 1993, Paul Allen invested $15 million via his Vulcan company for just under 20 percent of the company. Between February and March 1994, Krall and two other co-founders were ousted from the board, and 31 management and factory employees were laid off after another loss for 1993. In August 1994, Vulcan increased its stake to 50.35 percent after accusing Cardinal of overstating its value. The company thereafter focused only on multimedia sound cards and modems. In March 1997, Hayes Microcomputer Products announced it would acquire Cardinal for an undisclosed sum, shutting down the Lancaster plant and consolidating its assets into Hayes.
Reader's Guide
Cardinal Technologies is notable as a company that emerged from the remnants of RCA's New Products Division after General Electric's acquisition and divestiture of RCA. Founded by ex-RCA employees, it leveraged a former RCA plant to enter the fast-growing personal computer market of the late 1980s. Starting with modems, it quickly became a major player, securing OEM contracts and rising to become the second largest fax modem manufacturer in the United States by 1992. The company diversified into graphics cards, keyboards, monitors, and even complete PC systems (the PC 10) to compete with IBM and Apple. Its partnership with Fujifilm produced the Cardinal SnapPlus, an expansion card for superimposing graphics over video and importing photos from Video Floppy disks. The company's trajectory was altered by investment from Paul Allen's Vulcan in 1993, which led to board ousters, layoffs, and a restructuring that narrowed focus to multimedia sound cards and modems. Ultimately, Cardinal was acquired by Hayes Microcomputer Products in 1997, and its Lancaster plant was shut down. Its legacy lies in its rapid rise in the modem market and its brief foray into PC systems and video capture technology.
Did You Know?
- Cardinal Technologies was founded by Harold Krall and seven other ex-employees of RCA's New Products Division.
- The company acquired its Lancaster plant, equipment, and liabilities from General Electric and Thomson S.A. for $4 million in 1987.
- Paul Allen invested $15 million in Cardinal in September 1993, eventually increasing his stake to 50.35 percent in August 1994.
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