Atasi Corporation

{{Short description|Defunct California US hard disk drive manufacturer founded in 1981}} {{Distinguish|Atari Corporation}} {{Redirect|Atasi|the prominent Syrian family|Atassi family}} {{Use mdy dates|date=August 2025}}

{{Infobox company | name = Atasi Corporation | logo = Atasi Logo Regular.png | logo_alt = | type = Private | industry = Computer storage | founded = {{start date and age|1981|2|2}} (as Atasi Corporation) | founder = {{ubl|Frank C. Gibeau|Paul L. Farmer|Stanley F. Brown|Garold W. Plonczak}} | defunct = 1987 | fate = Acquired by Western Digital | hq_location = San Jose, California | key_people = | products = Hard disk drives | revenue = US$40 million | revenue_year = 1984 | net_income = US$15-20 million (1983) | num_employees = {{plainlist| *500 (Early 1985) *85 (Late 1986) *65 (Mid 1987) }} | website = }}

'''Atasi Corporation''' was an American {{frac|5|1|4}}-inch hard disk drive manufacturer company founded in California in 1981.

Atasi began selling products the following year in 1982 and was one of the first {{frac|5|1|4}}-inch hard disk drive manufacturers to develop and utilize closed-loop technologies such as voice-coil actuators.

Despite being considered a pioneer within its industry and having widespread adoption of its products in the high-end microcomputer market,<ref name=":11">{{cite magazine |last=Alper |first=Alan |date=September 10, 1984 |title=Say tighter financing may begin squeezing recent start-ups |url=https://link.gale.com/apps/doc/A3427415/GPS?u=wikipedia&sid=bookmark-GPS&xid=c74cfe75 |magazine=Electronic News |publisher=Reed Business Information |pages=10 ''et seq'' |via=Gale |volume=30}}</ref><ref>{{Cite book |url=https://archive.org/details/applicando056/page/72/mode/2up?q=Atasi |title=Applicando; Uno scambio tra Storage Dimension e Novell |date=May 1989 |publisher=Gruppo Editoriale Jackson |pages=72 |language=it |trans-title=An exchange between Storage Dimension and Novell |access-date=26 December 2024 |issue=56}}</ref> the company had financial problems throughout its lifetime. Atasi went through failed agreements, bankruptcy, and was acquired by Tandon then Western Digital in 1987.

The company briefly reemerged with the name of Atasi Technology in 1990. Atasi Technology sold Apple compatible external hard disk drives and rebranded Priam drives until 1992.

== History ==

=== Founding as Atasi Corporation === Atasi was incorporated in 1981. It was principally founded by Frank C. Gibeau, while Paul L. Farmer, Stanley F. Brown, and Garold W. Plonczak were three of four other founding partners.<ref>{{cite magazine | last=Staff writer | date=November 18, 1995 | url=https://link.gale.com/apps/doc/A651787/GPS?u=wikipedia&sid=bookmark-GPS&xid=57ed8739 | title=Atasi Replacing CEO, 3 Directors | magazine=Electronic News | publisher=Reed Business Information | volume=31 | issue=1576 | page=6 | via=Gale}}</ref> The name "Atasi" was a Native American word for a type of club used in warfare; Gibeau, a history enthusiast, chose the name for its Native American origins.<ref name=":12">{{Cite news |date=July 1981 |title=Breakpoints; Random Disk Files |url=https://archive.org/details/bitsavers_MiniMicroS_155560844/page/6/mode/2up?q=Zentronics+Atasi |access-date=25 December 2024 |work=Mini-Micro Systems |publisher=Norman Cahners |pages=6}}</ref><ref name=":13">{{cite magazine | last=John | first=Grietzer | date=June 7, 1982 | url=https://archive.org/details/sim_micro-marketworld_1982-06-07_5_23/page/44/ | title=Start-Up Winchester Builder Aims at High End | magazine=Computer Business News | publisher=IDG Publications | volume=5 | issue=23 | page=44 | via=the Internet Archive}}</ref><ref>{{cite journal | last=Eekhouse | first=John | date=August 15, 1982 | url=https://www.newspapers.com/article/the-san-francisco-examiner-disk-drive-in/161173760/ | title=Disk drive industry is filled with memories | journal=The San Francisco Examiner | page=D1, [https://www.newspapers.com/article/the-san-francisco-examiner-disk-drive-in/161173770/ D10] | via=Newspapers.com}}</ref>{{rp|D10}}

Prior to founding Atasi, Gibeau was manager of Verbatim's hard disk drive division.<ref name=":12" /> He also had over 17 years of experience at companies such as IBM and Memorex.<ref name=":16" /><ref>{{Cite book |url=https://archive.computerhistory.org/resources/access/text/2017/01/102769925-05-01-acc.pdf |title=Memorex Silverado Five |date=1979 |publisher=Memorex |pages=6 |access-date=9 January 2025}}</ref>

=== Early history/Frank Gibeau era (1981-1984) === left|thumb|An Atasi 3000 series ad from Mini-Micro Systems magazine Feb 1983.|260x260pxMost other hard disk drive companies at the time were using open-loop technologies such as stepper motors for controlling head movement.<ref name=":13" /><ref>{{Cite book |chapter-url=https://archive.org/details/bitsavers_MiniMicroSipheral_112218684/page/48/mode/2up?q=Atasi+3085 |title=Mini-Micro Systems |date=19 November 1984 |publisher=Cahners Publishing |pages=49 |chapter=5 1/4-Inch And Smaller Rigid Disk Drives |access-date=24 December 2024}}</ref> Stepper motors were slow and not capable of keeping up with the ever increasing capacity and density of the platters on hard disk drives. Additionally they were more prone to errors and had issues such as overheating when used for prolong periods of time.<ref>{{Cite web |last=Damjanović |first=Zarko |title=HDD actuator |url=https://hddsurgery.com/blog/hdd-actuator |access-date=24 December 2024 |website=Hdd Surgery}}</ref><ref>{{Cite web |date=6 July 2016 |title=Open-loop stepper motor versus closed-loop stepper motor systems |url=https://www.motioncontroltips.com/open-loop-stepper-motor-versus-closed-loop-stepper-motor-systems/ |access-date=30 December 2024 |website=Motion Control Tips}}</ref> Hard drives utilizing stepper motors and band actuators like the Seagate ST-506/ST-412, had an access time of 85 ms average with up to 205ms and a 255-345 tracks per inch density.<ref>{{Cite book |url=https://minuszerodegrees.net/manuals/Seagate/Seagate%20ST506%20ST412%20-%20OEM%20Manual.pdf |title=ST 506/412 OEM Manual |publisher=Seagate Technology |page=3 |access-date=July 28, 2022}}</ref>

Gibeau along with Farmer, Brown, and Plonczak developed their own closed-loop technologies to be used in their products.<ref>{{Cite journal |date=8 November 1983 |title=Linear actuator for a memory storage apparatus |url=https://patents.google.com/patent/US4414594A/en?assignee=Atasi&oq=Atasi |journal=Patent US4414594A |volume=}}</ref><ref>{{Cite journal |date=15 November 1983 |title=Linear actuator for memory storage device |url=https://patents.google.com/patent/US4415941A/en?assignee=Atasi&oq=Atasi |journal=Patent US4415941A}}</ref>

==== Atasi 3000 series ==== On August 16, 1982, Atasi announced the 3000 series of {{frac|5|1|4}}-inch hard disk drives.<ref>{{Cite magazine|last=Staff writer|date=August 16, 1982|title=Hardware news|page=62|magazine=InfoWorld|volume=4|number=32|publisher=IDG Publications|url=https://books.google.com/books?id=UzAEAAAAMBAJ&pg=PA62}}</ref> There were initially three models available, the 3020 (20 MB), 3033 (33 MB), and 3046 (46 MB). The 3020 had two disk platters, while the 3033 had three and the 3046 had four.<ref name=":14">{{Cite book|url=https://archive.org/details/bitsavers_atasiAtasi_1073198/mode/2up|title=Atasi Series 3000 OEM Manual|publisher=Atasi Corporation|year=1982|page=3}}</ref> They used the ST-506 interface, which was considered the industry standard at the time after its release in 1980. The 3020 would cost $1470 upon release and the 3033 cost $1800. The Atasi 3000 drives were expected to be in final production by early 1983.<ref>{{Cite magazine|url=https://archive.org/details/sim_esd_1982-10_12_10/page/34/mode/2up?q=atasi+3000|magazine=Digital Design|publisher=Digital Design Publishing|year=1982|volume=12|pages=34–35|title=5 1/4" Winchester Manufacturers|issue=10}}</ref>

The 3000 series had a 30-60 ms access time,<ref name=":7">{{Cite book |last=Pate |first=Donald |url=https://archive.org/details/sim_esd_1982-10_12_10/page/n91/mode/2up?q=atasi+3000 |title=Atasi: Why Another Disk Drive Company? |publisher=Digital Design |year=1982 |pages=91}}</ref><ref name=":14" /> which was something previously only seen in bigger 8 and 14-inch hard disk drives such as the IBM 3380. The 3380 had an average access time of 16 ms and was the first hard drive to get past the 1 GB barrier in 1980.<ref>{{Cite web |last=Theophanidis |first=Philippe |date=6 May 2013 |title=First Gigabyte Hard Drive: The IBM 3380 HDA |url=https://aphelis.net/first-gigabyte-hard-drive-ibm-3380/ |access-date=23 December 2024 |website=Aphelis}}</ref> The 3000 series used linear voice coil actuators with closed-loop servo controls which allowed faster and more precise data access.<ref>{{Cite news |date=September 1982 |title=High Capacity 5 1/4" Winchester Offers 30ms Access Speed |url=http://www.bitsavers.org/magazines/Digital_Design/Digital_Design_V12_N09_198209.pdf |access-date=9 January 2025 |work=Digital Design |pages=20 |volume=12 |issue=9}}</ref><ref name=":16">{{Cite news |date=30 June 1982 |title=5 1/4-in. drive has 30-ms access time |url=https://www.worldradiohistory.com/Archive-Electronics/80s/82/Electronics-1982-06-30.pdf |access-date=9 January 2025 |work=Electronics |publisher=McGraw Hill |pages=141}}</ref> They also allowed higher storage capacities, having a smaller track density of 800 tracks per inch.<ref>{{Cite web |title=Head Actuator Of Hard disk drive |url=https://www.datarecoverytools.co.uk/data-recovery-vocabulary/vocabulary-f-j/head-actuator-of-hard-disk-drive/ |archive-url=https://web.archive.org/web/20240524082835/https://www.datarecoverytools.co.uk/data-recovery-vocabulary/vocabulary-f-j/head-actuator-of-hard-disk-drive/ |archive-date=24 May 2024 |access-date=30 December 2024 |website=Data Recovery Salon}}</ref><ref name=":14" /> thumb|246x246px|Top/side view of an Atasi 3051 drive.

In an advertisement in ''Personal Computing'' in September 1982 for the 3000 series Gibeau states:<blockquote>"In the push for high capacity {{frac|5|1|4}}-inch disk drives, manufacturers often overlook the requirement for low access time," said Gibeau. "The combination of high capacity and fast access, achieved in the Atasi products, is vital to the new generation of multi-user, multi-tasking computer systems. It brings such applications as local area networking and computer graphics more within reach of small-business computer and office-automation equipment users."<ref>{{Cite magazine |url=https://archive.org/details/PersonalComputing198209/page/n217/mode/2up?q=atasi |magazine=Personal Computing |publisher=Hayden Publishing |year=1982 |edition=September 1982 |page=216 |title=Hardware of the Month: Speed Is Key to Atasi Drives |volume=6 |number=9 |access-date=July 28, 2022|last=Staff writer}}</ref> </blockquote>Atasi also used other marketing methods to help its drives stand out such as offering the "Atasi White Paper". These were brochures discussing shock/vibration and temperature effects on hard disk drives and how Atasi drives mitigate those problems in its closed-loop designs.<ref>{{Cite news |date=April 1984 |title=How to Choose A Disk Drive, Part I: Your new computer system may be in for a cool reception |url=https://archive.org/details/bitsavers_MiniMicroS_162921079/page/50/mode/2up?q=Atasi+3085 |access-date=23 December 2024 |work=Mini-Micro Systems |publisher=Norman Cahners |pages=50–51}}</ref><ref>{{Cite news |date=September 1984 |title=How to Choose A Disk Drive, Part II: Computers designed for the office environment are in for a shock! |url=https://archive.org/details/bitsavers_MiniMicroS_172223724/page/222/mode/2up?q=Atasi+3085 |access-date=23 December 2024 |work=Mini-Micro Systems |publisher=Norman Cahners |pages=222–223}}</ref> <!-- ==== Momentum Computer purchase ==== In July 1983, Momentum Computer Systems purchased over $4 million in drives from Atasi to be used in its MC6800-based computers.

V-Tek Computer Thing ==== https://archive.org/details/microtimesvolume00bamp_17/page/n51/mode/2up?q=Atasi -->

==== Failed acquisition by Seagate ==== In October 1983, Seagate Technology announced its intent to acquire Atasi through the offer of a stock swap worth $131.4 million (7.2 million shares of Seagate worth $18.25 each, at the time). Seagate's primary reason for acquiring Atasi was to obtain the rights to the lucrative patents for Atasi's closed-loop voice coil technology.<ref>{{Cite news|date=October 24, 1983|title=Seagate/Atasi Deal: A Double-Edged Sword?|page=97|work=Computerworld|publisher=IDG Publications|url=https://books.google.com/books?id=wFqbDqPhSMcC&dq=ATASI+TECHNOLOGY%2C+INC&pg=RA1-PA97|last=Myers|first=David|volume=XVII|number=43}}</ref><ref>{{cite journal | last=Eekhouse | first=John | date=October 14, 1983 | url=https://www.newspapers.com/article/the-san-francisco-examiner-seagate-disk/161173790/ | title=Seagate disk products line will expand with Atasi deal | journal=The San Francisco Examiner | page=C2 | via=Newspapers.com}}</ref><ref>{{cite journal | last=Raymond | first=Joan | date=October 14, 1983 | url=https://www.newspapers.com/article/santa-cruz-sentinel-seagate-to-buy-atasi/161173781/ | title=Seagate to buy Atasi Corp. | journal=Santa Cruz Sentinel | page=B8 | via=Newspapers.com}}</ref> Only a month later the deal was called off, with insiders surmising that neither companies stood to benefit fiscally from merging.<ref>{{Cite news|date=November 22, 1983|title=Seagate and Atasi called off their merger discussions|work=Los Angeles Times|url=https://www.newspapers.com/article/the-los-angeles-times-business-in-brief/161174232/|last=Staff writer|page=2}}</ref><ref>{{cite journal | last=Raymond | first=Joan | date=December 28, 1983 | url=https://www.newspapers.com/article/santa-cruz-sentinel-things-looking-up-fo/161173809/ | title=Things looking up for electronic firms | journal=Santa Cruz Sentinel | page=B4 | via=Newspapers.com}}</ref>thumb|246x246px|An Atasi 3065/3075 series HDD image from a magazine advertisement.

==== Atasi 3065/3075 ==== In December 1983, the AT-3065 and AT-3075 were announced as an expansion to the 3000 series of {{frac|5|1|4}}-inch hard disk drives. They had 65 and 75 MB of storage with an average access time of 24 ms. The drives were set to be released in mid-1984 with the 3065 costing $1,800 and the 3075 $1,950.<ref>{{Cite magazine|date=December 12, 1983|title=Peripheral Products In Cartridge Tape Tech, Disk Drive Tech Debut|volume=XVII|page=87|magazine=Computerworld|issue=50|publisher=IDG Publications|url=https://books.google.com/books?id=nCRF5I1tgOwC&dq=Atasi+AT-3065+drive&pg=RA1-PA87}}</ref><ref>{{Cite news |date=March 1984 |title=Winchester 5 1/4-in. drives |url=https://archive.org/details/bitsavers_ComputerDe23N03198403_178667451/page/266/mode/2up?q=Atasi |access-date=26 December 2024 |work=Computer Design |pages=267 |volume=23 |issue=3}}</ref>

Gibeau left Atasi in early 1984, going on to join Epelocorp, a subsidiary created by Xebec Corporation, as the president. Alan J. Grant would then take over Atasi as temporary president until July.<ref>{{cite news |last=Staff writer |date=June 15, 1984 |title=Xebec forms subsidiary to develop disk drives |url=https://www.newspapers.com/article/the-san-francisco-examiner-xebec-forms-s/161174983/ |work=The San Francisco Examiner |page=C2 |via=Newspapers.com}}</ref><ref>{{cite journal |last=Staff writer |date=July 16, 1984 |title=Executive Corner |url=https://books.google.com/books?id=MdBP83DW6g4C&pg=PA104 |journal=Computerworld |publisher=IDG Publications |volume=XVIII |issue=29 |page=104 |via=Google Books}}</ref>

=== Donald R. Lundell era (1984–1985) === Lundell joined Atasi in 1982 as vice president of engineering. Before joining Atasi, he spent over 18 years at IBM in various management positions. In July 1984, he was appointed president and CEO of the company, taking over from Alan J. Grant, who was the interim president since February of that year.<ref>{{cite journal | last=Staff writer | date=September 7, 1982 | url=https://www.newspapers.com/article/the-los-angeles-times-business-and-peopl/161175014/ | title=Business and People | journal=Los Angeles Times | page=IV.3 | via=Newspapers.com}}</ref><ref name=":0" /><ref name=":1">{{Cite news |last=Greer |first=Jonathan |date=June 3, 1986 |title=Atasi Boss: We're not ready to die |url=https://www.newspapers.com/article/boca-raton-news-atasi-boss-were-not-re/161173877/ |work=Boca Raton News |page=12 |via=Newspapers.com}}</ref>

==== Financial struggles/infringement suits ==== By September 1984, Atasi was struggling financially. The company had about $100 million in backlog orders from computer manufactures such as Convergent Technologies and NCR. However, due to the high production cost of their drives and having difficulty raising funding from investors, the company was failing to manufacture orders and make a profit.<ref name=":11" />

In November 1984, Atasi filed a patent infringement suit against Seagate Technology.<ref>{{Cite web |date=26 May 1988 |title=Atasi Corp. v. Seagate Technology |url=https://case-law.vlex.com/vid/atasi-corp-v-seagate-888659640 |access-date=23 December 2024 |website=vLex}}</ref><ref>{{Cite web |date=26 May 1988 |title=Atasi Corporation, Plaintiff-appellant, v. Seagate Technology, Defendant-appellee, 847 F.2d 826 (Fed. Cir. 1988) |url=https://law.justia.com/cases/federal/appellate-courts/F2/847/826/193666/ |access-date=23 December 2024 |website=Justia}}</ref> Lundell claimed that Seagate used information gained from the previous year's failed acquisition deal in designing their new ST4000 5-1/4in hard drive series. He also claimed they illegally used Atasi's dual coil linear actuator design in the ST4000 and disregarded a confidentiality agreement made during the failed acquisition deal.<ref name=":2">{{Cite news |last=Moad |first=Jeff |date=3 December 1984 |title=Atasi names Seagate in $4M patent infringement suit |url=https://link.gale.com/apps/doc/A3549136/GPS?u=wikipedia&sid=bookmark-GPS&xid=308b4d17 |access-date=23 December 2024 |work=Electronic News |publisher=Sage Publications, Inc. |pages=39 |via=Gale |volume=30}}</ref>

Additionally Lundell considered filing patent infringement suits against other drive manufacturers such as Tandon and Applied Storage Technology after already filing one against Priam.<ref name=":2" /><ref>{{Cite news |title=One year after merger talks end, Atasi sues Seagate over patent |url=https://books.google.com/books?id=o1hJAQAAIAAJ&q=Atasi%20sues%20Priam |access-date=26 December 2024 |work=ElectronicsWeek | date=1984 |pages=8–9 |volume=57}}</ref>

In July 1985, Lundell was looking for a firm to buy the company or its hard disk drive technology after laying off most of its employees. Atasi started with 500 employees in the beginning of 1985, dropping to 280 then only 14 after additional layoffs in mid 1985.<ref>{{Cite news |last=Nee |first=E. |date=15 July 1985 |title=Atasi Seeks Cash, Is on Block |url=https://link.gale.com/apps/doc/A653184/GPS?u=wikipedia&sid=bookmark-GPS&xid=1047a602 |access-date=23 December 2024 |work=Electronic News |pages=31 |via=Gale |volume=31 |issue=1558}}</ref> Lundell cited a concurrent slowdown in the personal computer market as well as freezing of the company's credit line as the reasons for the layoffs.<ref>{{cite journal |last=Staff writer |date=May 17, 1985 |title=250 more Valley workers laid off |url=https://www.newspapers.com/article/the-peninsula-times-tribune-250-more-val/161173840/ |journal=The Peninsula Times Tribune |page=E-1 |via=Newspapers.com}}</ref><ref name=":8">{{cite news |last=Hof |first=Rob |date=July 16, 1985 |title=Atasi work force slashed by half; credit line cut |url=https://www.newspapers.com/article/the-peninsula-times-tribune-atasi-work-f/161173851/ |work=The Peninsula Times Tribune |page=D1 |via=Newspapers.com}}</ref><ref>{{Cite news |date=29 July 1985 |title=Computer Industry; SLUMP |url=https://books.google.com/books?id=2Huij24Zmr0C&dq=atasi+layoffs&pg=PA72 |access-date=24 December 2024 |work=Computerworld |pages=72 |volume=19 |issue=30}}</ref>

In August 1985, Atasi filed for Chapter 11 protection.<ref name=":0" /> <!-- Zentronics/Atasi partnership sometimes 1985

https://www.google.com/books/edition/Canadian_Electronics_Engineering/7xhJAQAAIAAJ?hl=en&gbpv=1&bsq=atasi+3051&dq=atasi+3051&printsec=frontcover https://www.google.com/books/edition/Canadian_Electronics_Engineering/fBlJAQAAIAAJ?hl=en&gbpv=1&bsq=Zentronics+Atasi&dq=Zentronics+Atasi&printsec=frontcover -->

==== Computer Memories deal ==== In October 1985, Computer Memories, Inc., and Atasi discussed a pact in which Computer Memories would acquire Atasi's closed loop voice coil technology. On October 29, Computer Memories backed out of the deal, for seemingly unknown reasons. It was said the deal would have attracted new customers to Computer Memories by allowing them to expand their product line, after IBM in August did not renew its contract to purchase hard disk drives from them for their PC AT.<ref name=":0">{{Cite news|date=October 29, 1985|title=Chatsworth Company Backs Out: Computer Memories-Atasi Deal Unravels|work=Los Angeles Times|url=https://www.latimes.com/archives/la-xpm-1985-10-29-fi-13266-story.html|archive-url=https://archive.today/20241219081632/https://www.latimes.com/archives/la-xpm-1985-10-29-fi-13266-story.html|archive-date=December 19, 2024}}</ref>

Atasi was to receive $1 million with up to an additional $5 million in royalties from the deal. Lundell said he was confused by the decision as Computer Memories was previously eager to sign the agreement.<ref name=":0" /> Computer Memories most likely backed out of the deal due to their own financial struggles at the time.<ref>{{Cite news |last=Riser |first=Joseph |date=4 November 1985 |title=Comp. Mem. Asia staff cut as qtr. net falls; Atasi talks discontinued |url=https://link.gale.com/apps/doc/A4012103/GPS?u=wikipedia&sid=bookmark-GPS&xid=59aca24f |access-date=23 December 2024 |work=Electronic News |pages=27 |via=Gale |volume=31}}</ref>

Lundell resigned from Atasi in November 1985, later becoming president of Aspen Peripherals Corporation in February 1986.<ref>{{Cite news |date=24 February 1986 |title=Computer Industry; Executive Corner |url=https://books.google.com/books?id=G_m3SUQAdGsC&dq=Atasi+Technologies%2C+Inc&pg=PA106 |access-date=26 December 2024 |work=Computerworld |publisher=IDG Enterprise |pages=106 |volume=20 |issue=8}}</ref>

=== Stanley F. Brown era (1985–1987) === Brown was one of the founders of Atasi and by 1986 had 20 years of hard disk drive industry experience with multiple patents made.<ref>{{Cite web |title=Patents by Inventor Stanley F. Brown |url=https://patents.justia.com/inventor/stanley-f-brown |access-date=23 December 2024 |website=Justia}}</ref> He left Atasi in 1984 and joined Computer Memories, Inc. in August 1985 as senior vice president briefly.<ref>{{Cite news |last=Silverstein |first=Stuart |date=14 August 1985 |title=Los Angeles County - News from Aug. 14, 1985 |url=https://www.latimes.com/archives/la-xpm-1985-08-14-fi-2892-story.html |access-date=23 December 2024 |work=Los Angeles Times}}</ref> After the failed Computer Memories acquisition, he chose to come back as CEO in an attempt to revive the company and take it out of Chapter 11 bankruptcy. Another founder of Atasi, Paul L. Farmer, joined him as vice president for quality assurance.<ref name=":3">{{Cite news |last=Greer |first=Jonathan |date=3 June 1986 |title=Atasi boss: We're not ready to die |url=https://www.newspapers.com/article/boca-raton-news-atasi-boss-were-not-re/161173877/ |access-date=19 December 2024 |work=Boca Raton News |pages=39}}</ref>

At the time Atasi relied mainly on contracts with french computer manufacturer Groupe Bull, which sold about 1,000 drives a month, for funding. Brown and his team planned to lower company costs and work out deals with new suppliers. Additionally manufacturing was planned to be shifted from San Jose to the far east.<ref name=":3" />

On June 2, 1986, Atasi emerged from Chapter 11 bankruptcy and had reorganization plans approved.<ref>{{cite news |last=Staff writers |date=June 3, 1986 |title=Other news to note |url=https://www.newspapers.com/article/the-san-francisco-examiner-other-news-to/161173869/ |work=The San Francisco Examiner |page=C1 |via=Newspapers.com}}</ref><ref name=":4">{{cite news |last=Staff writer |date=December 9, 1986 |title=Atasi Corp. to be sold to Tandon Computer |url=https://www.newspapers.com/article/the-peninsula-times-tribune-atasi-corp/161174222/ |work=The Peninsula Times Tribune |page=B6 |via=Newspapers.com}}</ref>

==== Acquisition by Tandon then Western Digital ==== In December 1986, Tandon Corporation, another large manufacturer of hard drives, announced that they were to acquire Atasi in a $5 million deal after the latter had re-emerged from Chapter 11 bankruptcy reorganization earlier.<ref name=":4" /><ref name="tobebought">{{cite news |last=Staff writer |date=December 10, 1986 |title=Atasi to be bought by Tandon |url=https://www.newspapers.com/article/the-lompoc-record-atasi-to-be-bought-by/161173896/ |work=The Lompoc Record |page=B4 |via=Newspapers.com}}</ref> Computer Memories, Inc. was also negotiating in an attempt to acquire Atasi but was outbid.<ref>{{Cite news |last=Freedman |first=B. |date=20 August 1985 |title=IBM Won't Renew CMI Contract to Supply 20M AT Hard Disks |url=https://link.gale.com/apps/doc/A631427/GPS?u=wikipedia&sid=bookmark-GPS&xid=824e3394 |access-date=23 December 2024 |work=PC Week |pages=115 |via=Gale |volume=2 |issue=33}}</ref>

The main motive for buying Atasi was to expand the capacity of their disk drives, as Tandon drives went up to 50 MB in capacity while Atasi offered up to 170 MB. Atasi at the time had 65 employees and would operate as a wholly owned subsidiary of Tandon. Production was expected to be shifted from San Jose to Tandon's Singapore facility.<ref>{{Cite news |date=April 20, 1987 |title=Tandon buys Winchester drive maker |url=https://books.google.com/books?id=fKtIbDybloEC&dq=ATASI+TECHNOLOGY%2C+INC&pg=PA105 |work=Computerworld |publisher=IDG Publications |page=105 |volume=XXI |issue=16 |issn=0010-4841}}</ref><ref>{{cite news | last=Staff writer | date=April 13, 1987 | url=https://www.newspapers.com/article/the-los-angeles-times-briefly/161173908/ | title=Briefly | work=Los Angeles Times | page=IV.2 | via=Newspapers.com}}</ref><ref>{{Cite news |date=April 13, 1987 |title=Tandon Signs Definitive Agreement for Atasi |url=https://techmonitor.ai/techonology/tandon_signs_definitive_agreement_for_atasi |access-date=January 25, 2022 |work=Computergram International |publisher=New Statesman Media Group}}</ref> Additionally the pending patent infringement suit against Seagate Technology from 1984 would be continued.<ref>{{Cite news |date=13 April 1987 |title=Tandon Signs Definitive Agreement For Atasi |url=https://www.techmonitor.ai/technology/tandon_signs_definitive_agreement_for_atasi |access-date=23 December 2024 |work=Tech Monitor}}</ref> The deal was finalized in April 1987.

The acquisition was short lived, as in late 1987 Tandon sold their hard disk drive unit to Western Digital in a deal for $49 million. With this move, Western Digital acquired Atasi by proxy.<ref>{{Cite web|title=SEC FILING, Western Digital|url=https://investor.wdc.com/node/9241/html|access-date=August 3, 2022|website=Western Digital Investor}}</ref><ref>{{Cite news |last=Scheier |first=Robert |date=1987 |title=Tandon dropping disk-drive division, focusing on PC subsystem sales |url=https://link.gale.com/apps/doc/A6201699/GPS?u=wikipedia&sid=bookmark-GPS&xid=493f676a |work=PC Week |publisher=Ziff-Davis |page=143 |via=Gale |volume=4 |issue=50}}</ref> This deal included Atasi's patents and manufacturing facilities in San Jose, California. The deal was finalized in March 1988.<ref>{{Cite news |last=Riser |first=Joseph |date=March 14, 1988 |title=Tandon wraps $49M sale of Winchester unit to WD |url=https://link.gale.com/apps/doc/A6285914/GPS?u=wikipedia&sid=bookmark-GPS&xid=a898043a |work=Electronic News |publisher=Reed Business Information |via=Gale |volume=34 |issue=1697}}</ref>thumb|Atasi Technology Logo (1990)

=== Reemergence/David Morris era (1990–1992) === In 1990, Atasi re-emerged as a standalone company by the name of Atasi Technology with [https://www.legacy.com/us/obituaries/legacyremembers/david-morris-obituary?id=48572944 Davis Morris] as the CEO.<ref name=":15">{{Cite web |date=n.d. |title=Atasi Technology, Inc. |url=https://opencorporates.com/companies/us_ca/C1661392 |archive-url=https://archive.today/20241219082126/https://opencorporates.com/companies/us_ca/1661392 |archive-date=December 19, 2024 |access-date=January 23, 2022 |publisher=OpenCorporates}}</ref><ref>{{Cite news |date=5 March 1990 |title=Sequel, Atasi, AMP bid for Priam assets. |url=https://link.gale.com/apps/doc/A8214878/GPS?u=wikipedia&sid=bookmark-GPS&xid=b3a23980 |access-date=23 December 2024 |work=Electronic News |publisher=Sage Publications, Inc. |pages=14 |via=Gale |volume=36 |issue=1799}}</ref>

In early 1990, Atasi released the MacServer, a 128 MB external drive for Apple computers for $799.<ref>{{Cite news |date=February 1990 |title=Introducing the ATASI 128MB MacServer. $799. Our factory direct price. |url=https://archive.org/details/MacUser9002February1990/page/n203/mode/2up?q=Atasi+Technology |access-date=23 December 2024 |work=MacUser |pages=45}}</ref>

In March 1990, Atasi acquired Priam Corporation's line of 5.25-inch hard drives and inventory for $5.2 million during an asset auction after Priam filed for Chapter 11 bankruptcy.<ref>{{Cite magazine|url=https://archive.org/details/sim_electronic-news_1990-03-26_36_1802/page/n5/mode/2up?q=atasi+technology|title=Sequel, Atasi Buy Major Priam Assets|date=March 26, 1990|magazine=Electronic News|publisher=Reed Business Information|page=7|volume=36|issue=1802}}</ref><ref>{{Cite news |date=30 March 1990 |title=Minigrams |url=https://link.gale.com/apps/doc/A8854365/GPS?u=wikipedia&sid=bookmark-GPS&xid=33d65022 |access-date=23 December 2024 |work=Computergram International |publisher=GlobalData Ltd. |via=Gale |issue=1396}}</ref> After this, Atasi resold Priam's products using Atasi branding and offered capacities up to 1 GB.<ref name=":5">{{Cite book |last=Anderson |first=Douglas |url=https://archive.org/details/harddisktechnica0000doug/page/302/mode/2up?q=Atasi+3085 |title=The Hard Disk Technical Guide/Book and Cd Rom |date=1995 |publisher=Micro House |pages=1, 2 |isbn=978-1-880252-28-4 |access-date=23 December 2024}}</ref><ref name=":6">{{Cite news |last=Cunningham |first=Cara |date=19 November 1990 |title=Medium- and high-end ESDI disks. |url=https://link.gale.com/apps/doc/A9615307/GPS?u=wikipedia&sid=bookmark-GPS&xid=4d680edb |access-date=23 December 2024 |work=PC Week |pages=157 |via=Gale |volume=7 |issue=46}}</ref>

In mid 1990 the lawsuit previously filed against Seagate Technology in November 1984 for patent infringement was dismissed by a U.S. District Court in California. This was due to Western Digital acquiring the patents and having no intent of continuing the suit that had been pending for 6 years.<ref>{{Cite news |last=Deagon |first=Brian |date=4 June 1990 |title=Seagate eyes East Europe |url=https://link.gale.com/apps/doc/A8541660/GPS?u=wikipedia&sid=bookmark-GPS&xid=9517683f |access-date=23 December 2024 |work=Electronic News |page=14 |via=Gale |volume=36 |issue=1812}}</ref><ref name=":4" />

By April 1992 Atasi Technology was dissolved.<ref name=":15" />

== Trivia == In December 1987, an AT-3085 reportedly fell during a flight from the overhead luggage compartment onto the aisle. It was being delivered by a Tandon representative in person to freelance writer Ken Milburn who was building his own 386 based computer. Milburn said nonetheless the drive formatted and worked correctly.<ref>{{Cite news |last=Milburn |first=Ken |date=December 1987 |title=Finally, The Do-It-Yourself 386 Article |url=https://archive.org/details/microtimesissue300unse_8/page/106/mode/2up?q=Atasi |access-date=24 December 2024 |work=MicroTimes |pages=105–106 |issue=38}}</ref>

== Products == === Model Table === {| class="wikitable mw-collapsible" !Model no. !Released !Price (Release) !Units Sold (Est.) !Capacity !Size !Interface !Encoding !Spindle RPM |- !AT-3020 |1982 |$1,470 |? |20 MB | rowspan="10" |5 1/4" Full | rowspan="10" |ST-506 | rowspan="8" |MFM | rowspan="10" |3600 RPM |- !AT-3033 |1982 |$1,800 |1-5,000 (1984)*<ref name=":9">{{Cite book |url=https://archive.org/details/sim_computerworld_1984-09-26_18_39a/page/n279/mode/2up?q=Atasi |title=Rigid Disk Drives |date=26 September 1984 |publisher=Computerworld |volume=18 |pages=C-31, C-37 |access-date=26 December 2024 |issue=39A}}</ref> |33 MB |- !AT-3046 |1982 | rowspan="4" |? |12,000+ (1984)*<ref name=":9" /> |46 MB |- !AT-3051 | rowspan="3" |1984-1985(?) | rowspan="4" |? |51 MB |- !AT-3051+ |54 MB |- !AT-3053 |53 MB |- !AT-3065 | rowspan="2" |1984 |$1,800 |65 MB |- !AT-3075 |$1,950 | rowspan="3" |? |75 MB |- !AT-3085 |1986 | rowspan="2" |? |85 MB | rowspan="2" |RLL |- !AT-3128 |1986 |128 MB |- ! colspan="9" |Rebranded Priam Drives |- !Atasi Gold<ref name=":10">{{Cite news |date=19 March 1990 |title=New Drives |url=https://archive.org/details/microtimesfallis00unse_4/page/10/mode/2up?q=Atasi |access-date=26 December 2024 |work=MicroTimes |pages=11 |issue=67}}</ref> | rowspan="9" |1990 |$449 | rowspan="9" |? |72 MB | rowspan="13" |5 1/4" Full |? | rowspan="2" |MFM | rowspan="13" |3600 RPM |- !519 | rowspan="3" |? |140 MB | rowspan="2" |ST-412 |- !519R |244 MB | rowspan="7" |RLL |- !638 |382 MB |ESDI-10 MHz |- !676 |$1,899 |765 MB |ESDI-15 MHz |- !738 | rowspan="2" |? |338 MB | rowspan="2" |SCSI |- !776 |676 MB |- !6120 |$2,995 |1 GB |ESDI-24 MHz |- !7120 | ? |1 GB |SCSI |- !V130 | rowspan="4" |? | rowspan="4" |? | rowspan="4" |? |30 MB | rowspan="4" |ST-506 | rowspan="4" |? |- !V150 |50 MB |- !V170 |70 MB |- !V185 |85 MB |- | colspan="9" |Model Table Sources: *,<ref name=":5" /><ref name=":6" /><ref name=":9" /><ref name=":10" /> * [http://www.bitsavers.org/pdf/csc/CSC_Hard_Drive_Bible_7th_Edition_1994.pdf ''Hard Drive Bible VII Edition - Corporate Systems Center (1994) - Archived by bitsavers.org''] * [https://stason.org/TULARC/pc/hard-drives-hdd/priam/index.html ''Hard Drive Specs from PRIAM - stason.org''] '''?''' - Unknown/missing data |}

=== Image Gallery === <gallery widths="200" heights="120" perrow="3" caption="Atasi 3051 Disk Drive"> Atasi 3051 Hard Disk Drive Label Side View.jpg|Front view of an Atasi 3051. Atasi 3051 Hard Disk Drive Top View.jpg|Top view of an Atasi 3051. Atasi 3051 Hard Disk Drive Bottom Side View.jpg|Bottom/side view of an Atasi 3051 </gallery>

== References == {{reflist|colwidth=30em}}

== External links == * [https://opencorporates.com/companies/us_ca/1017114 Atasi Corporation] from OpenCorporates * [https://archive.today/20241219082126/https://opencorporates.com/companies/us_ca/1661392 Atasi Technology, Inc.] from OpenCorporates

Category:1981 establishments in California Category:1994 disestablishments in California Category:American companies established in 1981 Category:American companies disestablished in 1994 Category:Companies based in San Jose, California Category:Computer companies established in 1981 Category:Computer companies disestablished in 1994 Category:Computer storage companies Category:Defunct computer companies of the United States Category:Defunct computer companies based in California Category:Defunct computer hardware companies Category:Defunct manufacturing companies based in the San Francisco Bay Area Category:Technology companies based in the San Francisco Bay Area