Microdyne opens UK channel to DPI.

Networker Microdyne has signed a deal to acquire US print server manufacturer Digital Products Inc (DPI) and estimates the move will bring an additional u2 million sales per year into the UK channel.

DPI, which is currently ranked number three in the fragmented US print server market, does not have a UK channel at present.

Microdyne has announced record profits of $13.2 million for the year ended October 1 1995, up 188 per cent on sales of $170 million. But the company warns that it will post an operating loss for its second quarter of 1996, which ends on March 31.

'The time since the close of fiscal 1995 has been anything but satisfying or smooth,' said chairman Philip Cunningham. The main reason for the loss, said Cunningham, is that Microdyne is shipping less product into distributors in a bid to bring down inventory levels.

It is also seeking to renegotiate its deal with Novell as its main supplier of Ethernet cards. 'Our contract works both ways,' said Peter Mylchreest, Microdyne European manager. 'But we pay them more than they pay us.'

Microdyne has announced the release of its Novell 10/ 100Mbps PCI adaptor for SMP computers.