MEMOREX

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THE COMPUTER HISTORY MUSEUM

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NEWSLETTER FOR EMPLOY

MAUGUST, 1966 Volume 3 No. 8

MEMOREX OFFERS DEBENTURES

"Whitie" Henderson

NEW SALESMENTwo men were recently added to thegrowing list of Memorex field salesengineers. They are, S.P. "Whitie"Henderson and Bill Beavers.

"Whitie" works out of the Western

Regional Office in Los Angeles,traveling in Southern Californiaand Arizona.

He attended Santa Monica CityCollege and resides in PacificPalisades, California, with hiswife Kathleen, son Dana, and daughter Heidi.

Bill Beavers is a sales engineerserving customers out of a newMemorex office in Birmingham,Alabama.

A graduate of West Virginia University in Mechanical Engineering, Billwas most recently employed by Consolidated Electrodynamics Corporation. He was a district salesand service manager of CEC dataprocessing equipment and later aproduct sales manager.

••'

Bill Beavers

COMPUTER TAPEINTRODUCED

A new ultra-durable computer tapeis being introduced this month tothe data processing community,through the combined efforts ofmany hundreds of Memorex employees.

Designated MRX-III, a third generation computer tape, this Memorexproduct has under gone extensivetesting within the plant and in thefield. The results show MRX-III to

be three to five times as durable

as the leading competitive tape.

It is expected that MRX-III premium tape will appeal foremost tothe critical users—those who re

quire extra long life and a toughertape for more punishing applications

In the Memorex Development andEngineering Laboratories, as wellas Product Evaluation Labs, thousands of machine hours proved MRX-III durability (wearability) usingall types of tape transports. Also,more than 50 major users put MRX-IIIto the test, often in the most adverse conditions, only to verifyour findings.

(Continued on page 5)

Memorex Corporation has offered$12,000,000 of 5% Convertible Subordinated Debentures to the public,along with a secondary offering of95,150 shares of Common Stock ($1par value).

Blyth and Co., Inc. and Smith, Barneyand Co., Inc. are co-managers of theoffering. The Debentures will bedue August 1, 1986, and are convertible into the Company's Common Stockat the rate of 13.8889 shares for

each $1,000 of Debentures.

Convertible Debentures are bonds,which may be converted into CommonStock at the option of the holderany time between the date of purchase and the maturity date.

The Debentures were issued as a means

of financing company expansion. Asthe size of the Company increases,it needs more working capital. Thebuilding program now in progress,and expected to be completed by theend of this year, will enable Memorexto double its installed manufacturingcapacity of mid-1965.

The total cost of these additions

will be approximately $8 million, ofwhich more than $3 million has al

ready been spent. Approximately$6 million of the net proceeds fromthe sale of Debentures will be

applied to the repayment of bankloans obtained to finance the

expansion program. The balance ofthe proceeds will be used to complete the rest of the expansionprogram.

The 95,150 shares of Common Stockwere offered by several Memorexstockholders. None of the proceedsfrom the sale of stock went to the

Company.

..

ESSAY EXPLORES SIGNIFICANCEOF LABOR DAY HOLIDAY

Labor Days come and go so routinely. Not much thought, if any, is givento their true significance. Our lives would be meaningless and our labor,sweat and tears would be reduced to mere drudgery should our lifetime ofwork lose its meaning.

Such a waste is almost inconceivable.

For many, labor has a strong materialistic flavor attached to it.us the means to squeeze a little pleasure out of life.

It gives

While not denying the legitimacy and hence the right to enjoy life, weshould draw our attention to the obverse side of the coin and elevate

ourselves to a greater intellectual, philosophical level. We constantlysearch for something to make life bearable and give us the dignity werequire.

This is precisely the keyword for which we are searching—DIGNITY,this dignity is within easy grasp.

Well,

In this vast universe of ours, we are perforced to recognize an All-Intelligent, All-Powerful Being directing this mighty work. Yet man,insignificant, were it not for his intelligence, can take part in thisGrand Operation in an active way and find dignity in life by co-operatingwith this Author of Nature.

This is almost too much to say; it is almost unbelievable. Because of Him,who has provided the raw materials, we can innovate things, repair them,clean them, or manipulate them for the benefit of man.

We can plan or formulate, cut down and raise, shape and form thoughts andthings into patterns of ever increasing complexity, usefulness andbeauty.

Thus, we co-operate and complement the work of this creation. Herein liesthe dignity of the labor of man - this very intimate relationship betweenAuthor and man.

On another plane, to complement the material aspects of labor, our workshould extend to include a quality of mercy and tenderness for allliving things—in a solicitous, personal way.

This intellectual participation will raise the position of dignityclearly above that of material fulfillment. As a result, this will leadto the creation of a new joy, which is the fruit of labor.

When properly nurtured, this joy allows the family to stay together,knitted in love, understanding and tenderness, both for parents andchildren, whose education and labors in turn, prepare them to savor andperpetuate this joy for the generations to come.

By Sal LoGatto

CROWDED ROADSCAUSE ACCIDENTS

When you take to the highways thisLabor Day weekend please rememberto drive carefully. Remember thatmany of the nearly 50,000 Americanswho lost their lives in traffic

accidents last year died during theholiday.

Seat belts do save lives, so don'tforget to buckle up. INTERCOM andyour fellow Memorex employees would

like to see you return to work inone piece.

INTERCOMGary WilliamsEDITOR

STAFF:

Sara Millar

Nima Luttrell

Roger CookGeorgene Gottlieb

Barbara Jones

PRECISION SELLSMEMOREX TAPESFOR BIG JOBS

All of the boxes that leave Memorex

containing our products are distinguished by the words which appearon the side of each one—"Memorex

Precision Magnetic Tape."

The Memorex tapes within the boxesare distinguished from other tapesby the care that goes into makingthem and by the jobs they are madeto perform.

Memorex tapes are used in all typesof situations where precision performance is a must. When Surveyorsuccessfully landed on the moon'ssurface and began sending its famous closeup pictures they wererecorded on Memorex Instrumentation

Tapes. More than 10,000 photographswere received at JPL's Goldstone

tracking station.

BETTER THAN FILM

Nearly 90% of the video and instrumentation tapes used in the SurveyorProgram came from Memorex. Thesetapes will form a permanent recordfor study of the moon. Memorextapes are used because they givebetter results than film. Also,pictures can be electronically enhanced when instrumentation tapesare used.

Memorex tapes are also used on theGemini Space Program, to recordtelemetering data and for data processing, and on the Apollo Moon ProbeProgram.

Cape Kennedy, where many of theUnited States space shots and rocket testing programs originate, isone of the principle Memorex customers .

RECORDS PROGRAMS

The United States Information

Agency has a different type ofapplication. It uses video tapesto record programs which are distributed throughout the world.

These are just a few of the manyimportant roles Memorex tapesplay throughout the nation. Thetapes we make are used because ourcustomers know that Memorex employeescan be depended upon to produce"Precision" products.

Ed Wildanger (left) discusses thevideo tape market with George Wright,using a chart to make his.point.

ERDMAN APPOINTEDTO NEW POST

Ed Seaman, Memorex vice president, recently announced the appointment of Bob Erdman to thenewly created post of product manager.

He will assume several duties

formally carried out by Seaman,who will be freed to handle other

of his increasing responsibilities.

Erdman was peripheral equipment product manager for three yearsat Control Data Corp. in Minneapolisbefore coming to Memorex.

He was also employed for sixyears at the Sperry Rand Corp.Univac Division, as a design engineer and product planner.

Erdman has made his family

home at 1062 Valley Forge Dr. inSunnyvale.

F©CUSon the

MARKETINGDEPARTMENT

Possibly the busiest part of theMarketing Department is the Marketing Services. This section is re

sponsible for sales and distributionof our product, pricing and quotations, special requests of customers,plus many other activities. AidingGeorge Wright with all of thesejobs is the Contract Administrationsection, which is headed by WardNolan, supervisor. His "crew" consists of Steve Walsh, Al Carman, andDon Brissenden plus their hard working secretaries Ella Lee, EileenRutledge, Pam Carlson and CarolCatron.

The Marketing Department is headed by Ed Seaman, Vice President ofMarketing. Assisting him are thefollowing managers; InstrumentationVideo, Ed Wildanger; Computer,Robert Erdman; Sales Planning, GerryMiller; and Marketing Services,George Wright. Helping them to"keep the ball rolling" are theirrespective secretaries Lynn Glick,Edna Markham, Esther Gorman andLinda Mancini. A new addition to

the department is John Neal as apricing specialist.

From a 10 reel order to $20 millionin sales a year is the success storyof Memorex Corporation. Much ofthis progress can be credited tothe hard work of the Marketing Department.

When the Marketing Department re

ceived its first order in 1962,it was for 10 reels of tape andthere were no order forms on which

to write it! However, a form wastyped, run off on the ditto, andthe shipment was made.

The entire department then had 3members; Edward Seaman, GeorgeWright and their secretary. Nowthe department has grown to 18people in Santa Clara, plus fiveregional sales managers, 20 salesmen and 1 sales representative.

30E

Company Vice President Ed Seamangives dictation to Lynn Glick, hissecretary.

Ward Nolan watches as (from left)

Pam Carlson, Carol Catron andEileen Rutledge finish daily report,

Gerry Miller shows Linda Mancini(left) and Ester Gorman some of

the areas in which Memorex sells

tapes.

Str-s

Would you believe that Ella Leeis talking to Bob Erdman?We hope so, because she really is,

MAG PICNIC SUCCESS STORY

Don Bench and family emerge from Lost Frontier Mine

in time to be greeted by INTERCOM'S candid camera.

It didn't take MAG members and guests long to gobbleup $6,500 worth of steaks, hamburgers, beer and pop.Slow lines gave employees chance to get acquainted.

Tina Leech, neice of Larry Leech, shows obvious disapproval over having to sit still for her portraitin an amusement park--of all places.

More than 1700 MAG members and their families andfriends entered these gates at the August 6th picnic

Greg Woolworth, nephew of Richard Bradish, helpsMarshal Clyde load gunfight victim on wagon, aftera comic street fight.

The airline strike has caused many vacationingMemorex employees to look for new means of travel.This group is heading up Frontier Village River.

Help On WayTo SolvePhone Problems

Sorry about those snarled telephonelines.

Memorex Switchboard Operator

Marlene (Leas) Tiberio, has beenreceiving numerous complaints fromemployees and persons who have hadtrouble reaching the company byphone.

Please don't blame Marlene. The

telephone problems are not her fault.

Help is on the way, in the form oftwo new switchboards now beinginstalled in the main lobby.

The one now in use has six in-cominglines and 10 going out, but there aare 200 telephone extensions within Memorex, more than enough totie up the 16 phone lines.

Two new lines were added the week

of August 15, but they weren'tenough to help Marlene.

By the first part of September thenew switchboards should be in

operation. They will approximatelydouble the capacity of the presentphone system.

During peak hours two operatorswill handle the calls. The new

operator will be Barbara Jones,who is presently working inReproduction.

The new phone system will giveMemorex better and faster service.

It will also be easier to enlargeas the company grows. The presentsystem is operating at its fullcapacity.

NEW .MRX TAPE(Continued from page 1)

Compatible with all computers andtape handlers, MRX-III, packaged ina reel using color coded hub rings,is offered in bit-per-inch densitiesof 556,800, full-width 800 and 1600(3200 fci).

In addition to its important durability feature, tests showed MRX-III to be extremely free from dropouts and superior to all tapes inshuttle tests to permanent failure.

This is the 1966 United Fund Poster

Girl. She symbolizes the manyhumans, both young and old, whoreceive help and hope for the futurefrom one of the 72 United Fund

supported agencies. The United Fundcampaign will begin soon at Memorex.You can help the young and old of

Santa Clara County find happier livesby supporting United Fund.

BOWLING RESULTS

The following are results of theWednesday, August 17,Bowling finalsat Moonlight lanes • in Santa Clara:

First Place—Poor Losers, Bill PrattKaren Pratt, Alt Case, Russ Rouseau.

Second Place—Four J's, Marion Jones,JoAnne Smetka, Rosey Jones, Jim Banks

High Scratch Game—Norma Irace (202),Bob Potter (246).

High Handicap Series—Mardell Carman(617), Rosey Jones (684).

High Handicap Game—JoAnne Smetka(235), Ed Horn (266).

Most Improved Bowler--JoAnne Smetka

(13 pins), Ed Horn (18 pins).

Century Award (100 over average) —Don Horn (268 game, with 168 aver.).

225 Pin and Lighter—Marion Jones(237).

250 Pin and Lighter--Don Horn (268).

200 Pin—Norma Irace (202).

225 Pin—Russ Rousseau( 226 ,233 ,230) ,Bob Potter (216), Ed Horn (234),Bob Wallin (236), Keith Gerry (236).

High Scratch Series—Marion Jones(554), Bill Pratt (630).

MEMOREX EMPLOYEEPOPULATION GROWS

Memorex's employee population continues to grow at a fast rate.The 94 people hired in June andJuly raised the number of employees

.•morex to approximately 700.Here are the names of your newfellow workers:

Billy Cochron, Orville Griffins,Andrew DeMaria, Richard Grossman,Anita Janke, Ray Kodres, KarlSchiavo, Edward Kao.

Marshall Tolin, John Neal, MaryelleMcCaffrey, Angelina Montoya, CathyCable, Eugene McGarvin, JamesOliver, Roland Jang, John Lowe.

AND GROWS

Donald Haynes, Josephine Ramirez,Barbara Jones, Richard Garcia, EllaLee, Eddie Jung, Gene Lim, RoyFrench, William Goforth, RoseSickmiller, David Jensen, andMarino Gaetano.

Jean Ashford, Barbara Smith, GeorgeDias, John Becker, Marjorie Bettis,Mary Jerde, Evelyn Tousignant,Betty Terry, Nora Bucks, Yves

Faroudja, Betty Davis, Arthur Ellis.

Margaret Schlesinger, William Endslej,Endsley, Shirley Morse, IsabelDussart, Dorothy Ferreira, EdithCosta, Marian McBride.

Gary Meredith, Dolores Villela,Jerry Imamura, Sharlet Truehill,

George Parker, Gloria Berard,Trinidad Arballo, Shirley Hartgraves.Robert Nicholas, Helsa Servis,Willard Pearson.

STILL MORE

Barbara Berger, Rose Vasques, HenryYoungstrom, Lillian Enos , RobertO'Brien, Beatha Egan, Grace Abate,

Walter Spencer, Valea Turpin, WonChoe, Henry Zebrowski, AndrewMiller, Sharon Katsinis, SandraSelleck, Joan Somerville, BonnieKusta, Raymond Davis, Fannie Monson.

ALL FOR NOW

Frank Buller, Bessie Nicosia, JosephNussbaum, Betty Faranda, ConstanceHaynes, Mamie Placencia, IrwinGomberg, Karen Callaway, RalphMares, John Helms, Carmel Wilton,

Ward Nolan, Harold Hall, DorothyDalgleish, Gary Williams.

TROFITSHARING

JPOINTS

PROFIT SHARING

$260,000

FIRST

SIX MONTHS

Profits and Profit Sharing go hand in hand. The 131% increase in ProfitSharing over the first six months of last year was the direct result of131% increase in profits. Net profits after taxes were $1,216,000 forthe six month period ended June 30, 1966, compared to $527,000 for thefirst half of 1965. These profits were produced by sales of $10,582,000and resulted in earnings per share of $1.21 compared with $0.54 in the1965 First Half.

Memorex's reserve for the 1966 Profit Sharing contribution was $260,500for the six months ended June 30, 1966. This figure compares with$113,119 for the first six months of 1965 and $280,185 for all of lastyear.

Since a Profit Sharing reserve of over $260,000 for the first six monthsis about as much as all of last year's contribution, the future looksbright for Memorex Profit Sharers. Profit Sharing is inextricably tiedto profits, and the total Profit Sharing contribution for 1966 will depend on the profits we earn during the remainder of the year.

Just as Profit Sharing is tied to profits, Memorex's profits are thedirect result of every employee's job performance and cost savingsefforts. Our performance and efforts directly affect our and our fellowemployees share in profits. Let's make the remainder of 1966 as successful as the beginning. Memorex1s future - and our share in it - willbe just as bright as we make it.

New Ad AgencyNow Conducting"Situation Survey"

Hoefer, Deiterick and Brown,San Francisco advertising agency,will be handling Memorex's advertising program beginning the firstof November.

The agency is presently doinga three-month "situation survey"to study the company's advertisingprogram and its present and potential markets.

Results of the study will helpthe agency determine the company'sadvertising program for 1967 andfuture years.

Hal Marquis will be supervisorfor the Memorex account. Paul

Fillinger will be the account executive .

Hoefer, Deiterick and Brown

handles other accounts such as

Varian Associates, Lenkurt Electric,United Technology, Harrah's Club,Foremost Dairies and Mother's

Cookies.

DID YOU KNOW?The name "Memorex is a combination

of the words "memory'' and "excell-ance".

TOASTMASTERSRECEIVE CHARTER

The Memorex Toastmasters Club,which was started four short months

ago, has gone international.

Tne club was presented its charterfrom Toastmasters International,August 8, at a dinner meeting atthe Red Fox Den in San Jose.

QUARTERLY STATEMENTS MAILEDTO ALL 1965 PROFIT SHARERS

Quarterly Participation Statements for the period ending June 30, 1956were mailed recently to members of the Profit Sharing Plan.

"So then I said who needs your profitshoring?"

Several questions have been asked about the Statements. First, newmembers of the Plan wanted to know why they did not receive Statements.Statements were mailed only to employees who were members of tne Plan

in 1965 and participated in the 1965 contribution. These members alreadyhave shares allocated to their accounts. New members of the Plan

participate in the 1966 Profit Sharing contribution. However, tne allo

cations of their shares cannot be made until the profits for the entireyear are known, and they will not receive Participation Statements untilnext year.

Old members who received Statements have asked if the amount shown as

"INCREASE OR DECREASE CN /ALUE OF FUND" is th >f the 1966

Profit Sharing contribution to date. The answer is NO. Old members, aswell as new members, will not receive their share in the 1966 contriDU-tion until the end of the year. Tne amount shown as :'INCREASE OR DECREASEIN VALUE OF FUND" is their share of the income from Ch l >fil

Trust Investments for the quarter en