{{Short description|Defunct American computer company}} {{Infobox company | name=Fortune Systems Corporation | logo=Fortune Systems logo.svg | type=Public | industry=Computer | founded={{start date and age|1980|09}} in Foster City, California | founders={{ubl|Gary B. Friedman|David van den Berg|Homer Dunn}} | defunct={{end date and age|2011}} | trade_name={{ubl|Tigera Group, Inc. (1987–1996)|Connectivity Technologies, Inc. (1996–2011)}} | num_employees=Over 534 (1984, peak) | products=Fortune 32:16 }} '''Fortune Systems Corporation''', later '''Tigera Group, Inc.''' and '''Connectivity Technologies, Inc.''', was an American computer hardware and software company active from 1980 to 2011. The company existed as a manufacturer of Unix workstations between 1980 and 1987 and are most well known for their Fortune 32:16 line of Motorola 68000-based workstations. Following years of financial turmoil and executive churn, the company left the computer industry after selling the majority of their hardware assets off in 1987, followed by their software assets in 1988.
==History== ===1980–1983: Beginnings and early success=== Fortune Systems Corporation was formed in September 1980 in Foster City, California.<ref name=alpert>{{cite journal | last=Alpert | first=William M. | date=September 9, 1985 | url=https://www.proquest.com/docview/350537624 | title=Fortune's Misfortune: It Strives to Make Use of Adversity | journal=Barron's | publisher=Dow Jones & Company | volume=65 | issue=36 | page=14, 38 | id={{ProQuest|350537624}} }}</ref>{{rp|14}} Its principal founder was Gary B. Friedman,<ref name=1981b-September-Staff>{{cite journal | last=Staff writer | date=September 24, 1981 | url=https://www.newspapers.com/article/santa-cruz-sentinel-firm-gets-financing/133306508/ | title=Firm Gets Financing | journal=Santa Cruz Sentinel | page=19 | via=Newspapers.com}}</ref><ref name=lueck>{{cite journal | last=Lueck | first=Thomas J. | date=October 6, 1983 | url=https://www.proquest.com/docview/424794030 | title=Fortune Systems Ousts Head | journal=The New York Times | page=D1, D6 | id={{ProQuest|424794030}} }}</ref>{{rp|D1}} who had previously co-founded Itel Corporation, another San Francisco company in the business of leasing industrial equipment such as mainframe computers, with Peter Redfield in 1967.<ref name=1983-March-Dorfman>{{cite journal | last=Dorfman | first=Dan | date=March 20, 1983 | url=https://www.newspapers.com/article/chicago-tribune-speculative-arena-cool-t/133306661/ | title=Speculative arena cool to Fortune Systems issue | journal=Chicago Tribune | page=5.1, [https://www.newspapers.com/article/chicago-tribune-speculative-arena-cool-t/133306666/ 5.8] | via=Newspapers.com}}</ref>{{rp|5.8}}<ref name=1982-November-Kasabian>{{cite journal | last=Kasabian | first=Cynthia | date=November 28, 1982 | url=https://www.newspapers.com/article/the-san-francisco-examiner-itel-case-ho/133306628/ | title=Itel case: How not to run a company | journal=The San Francisco Examiner | page=D1, [https://www.newspapers.com/article/the-san-francisco-examiner-itel-case-ho/133306636/ D8] | via=Newspapers.com}}</ref><ref name=1983-September-Richter>{{cite journal | last=Richter | first=Paul | date=September 19, 1983 | url=https://www.newspapers.com/article/the-los-angeles-times-slimmer-itel-retur/133306755/ | title=Slimmer Itel Returns from Bankruptcy | journal=Los Angeles Times | page=IV.1 [https://www.newspapers.com/article/the-los-angeles-times-slimmer-itel-retur/133306763/ IV.6] | via=Newspapers.com}}</ref>{{rp|IV.1}} Before founding Itel, Friedman had worked for International Business Machines Corporation (IBM) from 1955 to 1967, as a manager within that company's marketing department.<ref name=lueck />{{rp|D1}} Friedman left Itel in August 1979 after it had collapsed amid a catastrophic debt default and entered Chapter 11 bankruptcy protection,<ref name=1981a-September-Staff>{{cite journal | last=Staff writer | date=September 23, 1981 | url=https://www.newspapers.com/article/the-san-francisco-examiner-itel-founder/133306498/ | title=Itel founder trying small computers | journal=The San Francisco Examiner | page=C2 | via=Newspapers.com}}</ref><ref name=1982-November-Kasabian />{{rp|5.8}} described by ''The New York Times'' as "the largest and most complex bankruptcies in [American] history" up to that point.<ref name=lueck />{{rp|D1}} Friedman was joined in founding the company with David van den Berg and Homer Dunn, also previously of Itel.<ref name=1981b-September-Staff /><ref name=foundersdepart>{{cite journal | last=Staff writer | date=July 5, 1984 | url=https://www.newspapers.com/article/the-peninsula-times-tribune-two-fortune/133346645/ | title=Two Fortune founders depart | journal=The Peninsula Times Tribune | page=B-8 | via=Newspapers.com}}</ref> Fortune began development of their to-be-flagship product, the Fortune 32:16—a relatively inexpensive, multiuser workstation running Unix and based on the Motorola 68000 microprocessor—in early 1980, before the company was formally incorporated.<ref name=discusses>{{cite journal | last=Wise | first=Deborah | date=November 30, 1981 | url=https://books.google.com/books?id=SD0EAAAAMBAJ&pg=PA8 | title=Fortune's president, Gary Friedman, discusses the 32/16 | journal=InfoWorld | publisher=IDG Publications | volume=3 | issue=28 | page=8 | via=Google Books}}</ref>
In September 1981, by which point the company employed over 50 people,<ref name=1981b-September-Staff /> Fortune raised $8.5 million in venture capital from the French Thomson SARL company.<ref name=1981a-September-Staff /> This was the largest raising of capital for a start-up personal computer company at the time.<ref>{{cite journal | last=Petrosky | first=Mary | date=November 11, 1985 | url=https://books.google.com/books?id=Mi8EAAAAMBAJ&pg=PA1 | title=The Ghosts of Comdex Past: Winners, Losers of Shows Gone By | journal=InfoWorld | publisher=IDG Publications | volume=7 | issue=45 | page=1, 8 | via=Google Books}}</ref>{{rp|1}} In exchange for their investment, Thomson received the rights to distribute and remarket the Fortune 32:16 as the Micromega 32 in France.<ref name=thomson>{{cite journal | date=September 24, 1981 | url=https://www.proquest.com/docview/424179103 | title=Thomson-CFS | journal=The New York Times | page=D6 | id={{ProQuest|424179103}} }}</ref><ref name=promise /> Other early investors included the First Chicago Bank, BNP Paribas, Walter E. Heller and Company, and the Greyhound Computer Corporation of Phoenix, Arizona; at 33 percent, Thomson's stake in Fortune was the largest of the bunch.<ref name=1981a-September-Staff /><ref name=thomson /> As a result of the capital infusion, Fortune moved their headquarters to a 26,000-square-foot plant in San Carlos, California, starting in October 1981.<ref name=1981b-September-Staff /> The move was complete by April 1982. That month, the company received an additional $10.5 million in venture capital from multiple investors,<ref name=1982-April-Staff>{{cite journal | last=Staff writer | date=April 19, 1982 | url=https://www.newspapers.com/article/the-san-francisco-examiner-fortune-syste/133306608/ | title=Fortune Systems raises $10.5 million more | journal=The San Francisco Examiner | page=C-1 | via=Newspapers.com}}</ref> followed by another $1.5 million from Thomson in June 1982.<ref name=promise>{{cite journal | last=Staff writer | date=June 28, 1982 | url=https://books.google.com/books?id=ZTAEAAAAMBAJ&pg=PA18 | title=Fortune receives investment promise from French | journal=InfoWorld | publisher=IDG Publications | volume=4 | issue=25 | page=18 | via=Google Books}}</ref>
In November 1981, Fortune publicly unveiled the 32:16 at the COMDEX/Fall 1981 show at the MGM Grand in Las Vegas, Nevada. According to ''InfoWorld'', Fortune at COMDEX was "clearly the technological talk" of that year's COMDEX, with the company's booth drawing massive crowds during the entire duration of the show.<ref name=fittingend>{{cite journal | last=Markoff | first=John | date=December 14, 1981 | url=https://books.google.com/books?id=oz0EAAAAMBAJ&pg=PA3 | title=A fitting end to the year of the personal computer | journal=InfoWorld | publisher=IDG Publications | volume=3 | issue=30 | page=1, 8 | via=Google Books}}</ref> The company promised a $5000 floppy drive-based computer, which it intended to sell through retail stores, both because of the larger margins and because large OEMs chose rival Convergent Technologies. Fortune signed a distribution agreement with the Computerland retail chain in March 1982,<ref name=computerland>{{cite journal | last=Wise | first=Deborah | date=March 15, 1982 | url=https://books.google.com/books?id=gD4EAAAAMBAJ&pg=PA1 | title=ComputerLand adds Fortune computer to its 16-bit offerings | journal=InfoWorld | publisher=IDG Publications | volume=4 | issue=10 | page=1 | via=Google Books}}</ref><ref name="serlin198511">{{Cite magazine |last=Serlin |first=Omri |date=November 1985 |title=Whatever Happened to the Supermicro Market? |url=https://archive.org/details/Unix_World_Vol02_10.pdf/page/n17/mode/1up?view=theater |access-date=2025-05-17 |magazine=Unix World |pages=16–19}}</ref> and began taking orders for the 32:16 worldwide (barring France, where Thomson resold it as the Micromega 32) in June 1982,<ref name=promise /> delivering the first of the units to customers in August 1982.<ref name=manual>{{cite book | date=1984 | url=http://bitsavers.trailing-edge.com/pdf/fortuneSystems/service/Fortune_32_16_Service_Manual_1984.pdf#page=274 | title=Fortune 32:16 Service Manual | publisher=Fortune Systems Corporation | page=B-67 | via=Bitsavers}}</ref><ref name=micros>{{cite journal | last=Staff writers | date=August 24, 1983 | url=https://archive.org/details/sim_computerworld_1983-08-24_17_31a/page/n186/ | title=Micros | journal=Computerworld | publisher=IDG Publications | volume=17 | issue=31A | page=D-1–D-56 | via=the Internet Archive}}</ref>{{rp|D-25}} In the popular computing press, the Fortune 32:16 was warmly received, with ''Byte''{{'s}} Steven H. Barry summarizing that it offered an "outstanding business-operating environment with a reasonably good technical development environment", while ''Practical Computing''{{'s}} Una Sheehan concluded it was poised to replace larger minicomputers "for most office purposes".<ref name=byte>{{cite journal | last=Barry | first=Steven H. | date=May 1983 | url=https://www.worldradiohistory.com/Archive-Byte/80s/Byte-1983-05.pdf | title=The Fortune 32:16 Business Computer | journal=Byte | publisher=McGraw-Hill | volume=8 | issue=5 | pages=82–100 | via=World Radio History}}</ref>{{rp|100}}<ref name=sheehan>{{cite journal | last=Sheehan | first=Una | date=January 1983 | url=https://archive.org/details/practical_computing-1983_01/page/66/ | title=Fortune 32:16 | journal=Practical Computing | publisher=IPC Electrical Electronic Press | volume=6 | issue=1 | pages=66–69 | via=the Internet Archive}}</ref>{{rp|69}} However, adoption rates were slow—the company selling only 5,600 units of the 32:16 within six months of market introduction<ref name=resigns>{{cite journal | last=Chin | first=Kathy | date=October 24, 1983 | url=https://books.google.com/books?id=rS8EAAAAMBAJ&pg=PA7 | title=Chief executive officer of Fortune Systems, Gary Friedman, resigns | journal=InfoWorld | publisher=IDG Publications | volume=5 | issue=43 | page=7 | via=Google Books}}</ref>—and reports of technical issues and poor software selection began to mar its reputation.<ref name=1983-March-Dorfman />{{rp|D8}}<ref name=dump>{{cite journal | last=Martin | first=James A. | date=April 13, 1987 | url=https://books.google.com/books?id=T8NUpKtWx4QC&pg=RA1-PA93 | title=Fortune Systems to dump hardware | journal=Computerworld | publisher=IDG Publications | volume=XXI | issue=15 | page=93 | via=Google Books}}</ref><ref name=1983-December-Staff /> Most criticized was its lackluster performance in multiuser configurations, where too many terminals slowed down the system so much as to be unusable.<ref name=1984-March-Miranker>{{cite journal | last=Miranker | first=C. W. | date=March 11, 1984 | url=https://www.newspapers.com/article/the-san-francisco-examiner-fortune-syste/133306866/ | title=Fortune Systems tries comeback | journal=The San Francisco Examiner | page=D1, [https://www.newspapers.com/article/the-san-francisco-examiner-fortune-syste/133306881/ D13] | via=Newspapers.com}}</ref>{{rp|D1}} Despite these concerns, the company was able to raise $112 million with its initial public offering in March 1983—one of the largest ever IPOs in American history at that point.<ref name=lueck />{{rp|D1}}<ref name=1985-February-Hof />{{rp|C-8}} Fortune's sales also peaked for the first quarter of 1983, at $20.8 million, from which they were able to make a $3.3 million profit.<ref name=1984-March-Miranker />{{rp|D1}}
===1983–1987: IPO and volatility=== By fall 1983, however, the valuation of Fortune's stock had declined precipitously, from over $22 a share in March to around $7.50 in October of the same year.<ref name=lueck />{{rp|D6}}<ref name=1983-August-Staff>{{cite journal | last=Staff writer | date=August 5, 1983 | url=https://www.newspapers.com/article/the-san-francisco-examiner-world-air-rep/133325466/ | title=World Air reports $9.5 million loss in quarter | journal=The San Francisco Examiner | page=C4 | via=Newspapers.com}}</ref><ref name=1983-September-Eckhouse>{{cite journal | last=Eckhouse | first=John | date=September 18, 1983 | url=https://www.newspapers.com/article/the-san-francisco-examiner-osborne-colla/133306725/ | title=Osborne collapse: only the first? | journal=The San Francisco Examiner | page=D1 | via=Newspapers.com}}</ref> The company was never able to fulfill its promise of a usable $5000 floppy disk-based product.{{r|serlin198511}} Sales dropped in tandem, from $12 million in the second quarter of 1983 to $9.1 million in the third quarter, the company losing $3 million in the second quarter and $9.1 million in the third quarter.<ref name=1984-March-Miranker />{{rp|D1}} The company's board of directors, meanwhile, became increasingly dissatisfied with Friedman's management style.<ref name=forced>{{cite journal | last=Myers | first=David | date=October 10, 1983 | url=https://books.google.com/books?id=OmSxUr-3FQsC&pg=PA4 | title=President of Fortune Forced to Resign | journal=Computerworld | publisher=IDG Publications | volume=XVII | issue=41 | page=4 | via=Google Books}}</ref> On the heels of the release of their second generation of workstations in October 1983, Friedman announced his resignation from the company, citing differences with Fortune's board of directors.<ref name=forced /><ref name=1983-October-Eckhouse>{{cite journal | last=Eckhouse | first=John | date=October 5, 1983 | url=https://www.newspapers.com/article/the-san-francisco-examiner-fortune-chief/133306789/ | title=Fortune chief quits, cites 'differences' | journal=The San Francisco Examiner | page=C1, [https://www.newspapers.com/article/the-san-francisco-examiner-fortune-chief/133306804/ C2] | via=Newspapers.com}}</ref><ref name=newhardware>{{cite journal | last=Chin | first=Kathy | date=October 31, 1983 | url=https://books.google.com/books?id=2y8EAAAAMBAJ&pg=PA28 | title=New hardware and software from Fortune | journal=InfoWorld | publisher=IDG Publications | volume=5 | issue=44 | pages=28–29 | via=Google Books}}</ref> David I. Caplan was immediately named Fortune's interim CEO.<ref name=1983-October-Sahagun>{{cite journal | last=Sahagun | first=Louis | author2=Paul Richter | date=October 6, 1983 | url=https://www.newspapers.com/article/the-los-angeles-times-fortune-systems-ch/133306817/ | title=Fortune Systems Chief Forced to Resign | journal=Los Angeles Times | page=IV.1 [https://www.newspapers.com/article/the-los-angeles-times-fortune-systems-ch/133306827/ IV.2] | via=Newspapers.com}}</ref> In December 1983, James S. Campbell, formerly of Shugart Associates, was named Fortune's new permanent CEO, with Caplan demoted to executive vice president.<ref name=1983-December-Staff>{{cite journal | last=Staff writer | date=December 9, 1983 | url=https://www.newspapers.com/article/the-los-angeles-times-computer-firm-elec/133306950/ | title=Computer Firm Elects Successor to Ousted Chief | journal=Los Angeles Times | page=IV.1 | via=Newspapers.com}}</ref><ref name=1984-April-Staff>{{cite journal | last=Staff writer | date=April 11, 1984 | url=https://www.newspapers.com/article/the-peninsula-times-tribune-fortune-syst/133306896/ | title=Fortune Systems' executive v.p. leaves to join competitor | journal=The Peninsula Times Tribune | page=B-13 | via=Newspapers.com}}</ref>
By dint of Fortune's tremendous IPO, the company retained $54 million in cash reserves around the end of 1983, helping the company stage a turnaround.<ref name=1984-March-Miranker />{{rp|D1}} Fortune's new owners were able increase sales dramatically, shipping over 2,000 workstations (including their new Professional System and Expanded Performance products) in December 1983 alone, bringing the total number of Fortune installations up to more than 20,000 by March 1984.<ref name=1984-March-Miranker />{{rp|D1}}<ref name=newhardware /><ref name=1984-March-Metz>{{cite journal | last=Metz | first=Robert | date=March 2, 1984 | url=https://www.newspapers.com/article/daily-news-the-hows-and-whys-of-computer/118191699/ | title=The hows and whys of computer company survival | journal=New York Daily News | page=39 | via=Newspapers.com}}</ref> Revenues in the last quarter of 1983 increased to $12.6 million, while losses decreased to $6.6 million.<ref name=1984-March-Miranker />{{rp|D1}} While 1984 started out promising for the company, the company turned a profit only in the second quarter of 1984 (their first profitable quarter in over a year).<ref name=1984-July-Staff>{{cite journal | last=Staff writer | date=July 26, 1984 | url=https://www.newspapers.com/article/the-peninsula-times-tribune-fortune/133306976/ | title=Fortune | journal=The Peninsula Times Tribune | page=B-9 | via=Newspapers.com}}</ref><ref name=1985-January-Staff>{{cite journal | last=Staff writer | date=January 31, 1985 | url=https://www.newspapers.com/article/the-san-francisco-examiner-writedowns-fo/133307072/ | title=Writedowns for Fortune | journal=The San Francisco Examiner | page=C1 | via=Newspapers.com}}</ref> In the following quarter of 1984, the company reported another net loss, of $3.7 million. Campbell attributed the loss to a decrease in the company's international sales, as well as mounting competition from IBM and AT&T, established stalwarts of the computer industry, in the Unix workstations arena.<ref name=1984-October-Staff>{{cite journal | last=Staff writer | date=October 24, 1984 | url=https://www.newspapers.com/article/the-san-francisco-examiner-new-loss-for/133307035/ | title=New loss for Fortune Systems | journal=The San Francisco Examiner | page=C1, [https://www.newspapers.com/article/the-san-francisco-examiner-new-loss-for/133307061/ C2] | via=Newspapers.com}}</ref>{{rp|C1}}<ref name=1985-February-Hof />{{rp|C-10}} The up-and-coming Altos Computer Systems—described by one journalist as Fortune's fiercest competitor—were also making fast in-roads in Fortune's market segment.<ref name=1984-March-Miranker />{{rp|D1}}<ref name=1984-March-Metz />
During 1984, the company experienced two runs of layoffs that saw 22 executives leave and many more workers dismissed, leaving the company with 512 workers by the end of the year.<ref name=1985-February-Hof />{{rp|C-10}} In August 1984, Fortune announced that they were in talks to acquire North Star Computers, a microcomputer manufactured based in nearby Berkeley, California, for $14 million.<ref name=considers>{{cite journal | last=Staff writer | date=August 21, 1984 | url=https://www.nytimes.com/1984/08/21/business/fortune-considers-buying-north-star.html | title=Fortune Considers Buying North Star | journal=The New York Times | page=D6 | archiveurl=https://web.archive.org/web/20150524155401/https://www.nytimes.com/1984/08/21/business/fortune-considers-buying-north-star.html | archivedate=May 24, 2015}}</ref><ref name=1984-August-Hof>{{cite journal | last=Hof | first=Rob | date=August 21, 1984 | url=https://www.newspapers.com/article/the-peninsula-times-tribune-fortune-nor/133306994/ | title=Fortune, North Star will attempt to merge | journal=The Peninsula Times Tribune | page=B-5 | via=Newspapers.com}}</ref><ref name=1984-August-Richter>{{cite journal | last=Richter | first=Paul | date=August 21, 1984 | url=https://www.newspapers.com/article/the-los-angeles-times-computer-firm-may/133307006/ | title=Computer Firm May Buy Rival | journal=Los Angeles Times | page=IV.1, [https://www.newspapers.com/article/the-los-angeles-times-computer-firm-may/133307014/ IV.2] | via=Newspapers.com}}</ref> Fortune had given North Star Computers around $3.7 million in debt financing.<ref name=Moad1984>{{cite journal | last=Moad | first=J. | date=August 27, 1984 | url=https://link.gale.com/apps/doc/A572028/GPS?sid=wikipedia | title=Fortune Eyes North Star Buy for $14M | journal=Electronic News | publisher= Sage Publications | volume=30 | number=1512 | page=23 | via=Gale}}</ref> Shortly before another product refresh at Fortune, Dunn and van den Berg, the company's last remaining co-founders, resigned from their posts in July 1984, supposedly in anticipation of the executive churn that would occur as the result of the merger.<ref name=1985-February-Hof>{{cite journal | last=Hof | first=Rob | date=February 15, 1985 | url=https://www.newspapers.com/article/times-tribune-balancing-fame-and-mis-for/133307079/ | title=Balancing fame and mis-Fortune | journal=The Peninsula Times Tribune | page=C-8, [https://www.newspapers.com/article/times-tribune-balancing-fame-and-mis-for/133307091/ C-10] | via=Newspapers.com}}</ref>{{rp|C-10}}<ref name=foundersdepart /> North Star and Fortune called off their merger in October 1984, however, with the two companies agreeing to collaborate on forthcoming hardware projects nonetheless.<ref>{{cite journal | last=Bergheim | first=Kim | date=October 15, 1984 | url=https://books.google.com/books?id=DS8EAAAAMBAJ&pg=PA13 | title=Companies End Merger Talks | journal=InfoWorld | publisher=IDG Publications | volume=6 | issue=42 | page=13 | via=Google Books}}</ref><ref name=1984-September-Hof>{{cite journal | last=Hof | first=Rob | date=September 15, 1984 | url=https://www.newspapers.com/article/times-tribune-personal-computer-manufact/133307284/ | title=Personal-computer manufacturers call off merger plan | journal=The Peninsula Times Tribune | page=D-4, [https://www.newspapers.com/article/times-tribune-personal-computer-manufact/133307287/ D-7] | via=Newspapers.com}}</ref>
Also in August 1984, ComputerLand filed a lawsuit against Fortune Systems, claiming $1 million in punitive damages due to what they alleged were fraud, misrepresentation and breach of contract on the part of Fortune. ComputerLand, Fortune's largest retail partner, alleged that the 32:16 was technically fraught and not as multiuser-capable as Fortune had promised, leading to a high rate of return and unsalable inventory.<ref name=1984-April-Richter>{{cite journal | last=Richter | first=Paul | date=April 29, 1984 | url=https://www.newspapers.com/article/the-los-angeles-times-computerland-suit/133306917/ | title=ComputerLand Suit Says Fortune Unit Fell Short | journal=Los Angeles Times | page=IV.2 | via=Newspapers.com}}</ref><ref name=1985-January-Woutat>{{cite journal | last=Woutat | first=Donald | date=January 8, 1985 | url=https://www.newspapers.com/article/the-los-angeles-times-fortune-systems-se/133306925/ | title=Fortune Systems Settles Suit by ComputerLand | journal=Los Angeles Times | page=IV.2 | via=Newspapers.com}}</ref> In January 1985, the two settled out of court on amicable terms, Fortune agreeing to pay a fraction of ComputerLand's stated damages and agreeing to repair around 100 defective units from within Computerland's warehouse at no added cost.<ref name=1985-January-Woutat /> Fortune's retail-oriented strategy failed, ''UnixWorld'' wrote in 1985, because its product was too expensive and uninteresting to customers visiting stores.{{r|serlin198511}}
Fortune reported losses of between $10 million and $12 million in the final quarter of 1984 and estimated that they had lost upwards of $19 million in total throughout the year.<ref name=1985-January-Staff /> In April 1985, Fortune laid off 100 of their 512 employees, or 20 percent of its entire workforce.<ref name=1985-April-Staff>{{cite journal | last=Staff writer | date=April 10, 1985 | url=https://www.newspapers.com/article/times-tribune-fortune-has-more-bad-news/133307120/ | title=Fortune has more bad news | journal=The Courier-News | page=C-1 | via=Newspapers.com}}</ref> By then the company had officially ended retail sales; ''UnixWorld'' estimated in late 1985 that 15% of sales were through VARs and distributors, 45% to large corporate direct sales, and 40% to large international customers and OEMs. Fortune estimated an installed base of 40-45,000 units, and a ratio of one server to three terminals.{{r|serlin198511}} Throughout 1985, the company lost $23.5 million,<ref name=1986-February-Staff>{{cite journal | last=Staff writer | date=February 26, 1986 | url=https://www.newspapers.com/article/the-san-francisco-examiner-mining-firm-r/133307154/ | title=Mining firm reports drop in '85 profit | journal=The San Francisco Examiner | page=C-3 | via=Newspapers.com}}</ref> and in beginning of 1986, Fortune laid off an additional 41 workers in the beginning of 1986 amid a planned restructuring of the company.<ref name=1986-January-Staff>{{cite journal | last=Staff writer | date=January 15, 1986 | url=https://www.newspapers.com/article/the-san-francisco-examiner-fortune-syste/133307144/ | title=Fortune Systems to cut expenses and restructure | journal=The San Francisco Examiner | page=C-2 | via=Newspapers.com}}</ref> Following the layoffs, Fortune announced their first profitable quarter in nearly two years, and the rest of 1986 would remain profitable for the company, barring one quarter.<ref name=1986-April-Staff>{{cite journal | last=Staff writer | date=April 24, 1986 | url=https://www.newspapers.com/article/the-san-francisco-examiner-crown-z-says/133307159/ | title=Crown Z says adverse conditions led to first-quarter drop | journal=The San Francisco Examiner | page=C-3 | via=Newspapers.com}}</ref><ref name=1987-April-Staff>{{cite journal | last=Staff writer | date=April 4, 1987 | url=https://www.newspapers.com/article/times-tribune-fortune-to-sell-computer-d/133307177/ | title=Fortune to sell computer division | journal=Peninsula Times Tribune | page=C-4 | via=Newspapers.com}}</ref> While still in the red, Fortune suffered less of a loss in 1986 compared to 1985.<ref name=1987-April-Staff />
In July 1985, Fortune partnered with Kirloskar Group, a large conglomerate of India, to provide the latter with thousands of workstations for their daily operations. The deal was one of the first alliances between an American computer company and an Indian corporation.<ref name=1985-July-Staff>{{cite journal | last=Staff writer | date=July 9, 1985 | url=https://www.newspapers.com/article/the-courier-news-computer-firms-eye-indi/133307129/ | title=Computer firms eye India | journal=The Courier-News | page=D-2 | via=Newspapers.com}}</ref>
===1987–2011: Decline, pivots, and acquisition=== Around the turn of 1986 into 1987, Fortune announced the establishment of Tigera, a subsidiary dedicated chiefly to Fortune's software—namely their office automation products. In February 1987, several of Fortune's executives vied to purchase Fortune's hardware manufacturing business in a friendly buyout offer. The management group leading the prospective buyout was led by Robert A. Davis and Brooke P. Taylor, who were Fortune's executive VP of marketing and president of Fortune's international subsidiary, respectively.<ref name=1987-February-Tharp>{{cite journal | last=Tharp | first=Joan | date=February 19, 1987 | url=https://www.newspapers.com/article/times-tribune-fortune-executives-want-to/133307168/ | title=Fortune executives want to buy division | journal=Peninsula Times Tribune | page=B-5 | via=Newspapers.com}}</ref> <ref name=1987-April-Staff /> Fortune ultimately rejected this offer a month later, in favor of selling their entire research and development operations, manufacturing lines, and sales, marketing, and support staff—the vast majority of Fortune's assets—to SCI Systems of Huntsville, Alabama, for between $15 million and $17 million.<ref name=1987-April-Staff /><ref name=1987b-May-Staff>{{cite journal | last=Staff writer | date=May 8, 1987 | url=https://www.newspapers.com/article/the-san-francisco-examiner-fortune-syste/133325657/ | title=Fortune Systems to sell assets | journal=The San Francisco Examiner | page=C-1 | via=Newspapers.com}}</ref> Tigera earned $24.2 million in cash from the deal, while most of Fortune's remaining 265 employees were rehired by SCI.<ref name=1987a-May-Staff>{{cite journal | last=Staff writer | date=May 6, 1987 | url=https://www.newspapers.com/article/the-san-francisco-examiner-group-buys-op/133325650/ | title=Group buys option for Fortune System stake | journal=The San Francisco Examiner | page=C-3 | via=Newspapers.com}}</ref><ref name=1988-May-Silverthorne>{{cite journal | last=Silverthorne | first=Sean | date=May 21, 1988 | url=https://www.newspapers.com/article/times-tribune-ex-tigera-chief-keeps-boar/133307232/ | title=Ex-Tigera chief keeps board seat | journal=Peninsula Times Tribune | page=C-1 | via=Newspapers.com}}</ref> Reflecting their newfound pivot, Fortune reincorporated as Tigera Group in July 1987.<ref name=1987-July-Staff>{{cite journal | last=Staff writer | date=July 3, 1987 | url=https://www.newspapers.com/article/the-los-angeles-times-briefly/133325715/ | title=Briefly | journal=Los Angeles Times | page=IV.2 | via=Newspapers.com}}</ref> Campbell exited Tigera a month later, with Isaac Gilinski named as his successor.<ref name=1987-August-Staff>{{cite journal | last=Staff writer | date=August 12, 1987 | url=https://www.newspapers.com/article/times-tribune-campbell-leaving-tigera-fo/133307189/ | title=Campbell leaving Tigera for Management Partners | journal=Peninsula Times Tribune | page=E-1 [https://www.newspapers.com/article/times-tribune-campbell-leaving-tigera-fo/133307201/ E-5] | via=}}</ref> Campbell sued Tigera for re-entry to the company's board of directors in 1988.<ref name=1988-May-Silverthorne />
Several of Fortune's former distributors filed a lawsuit in the Sacramento County Superior Court against Tigera Group in September 1987, seeking $39 million in punitive damages. This was days after Tigera (née Fortune) had paid out $12 million to investors who had filed a class-action lawsuit against Fortune, claiming that the company made false or misleading statements on the prospectus of their IPO in order to inflate their stock price.<ref name=1987-September-Peterson>{{cite journal | last=Peterson | first=Marguaret | date=September 23, 1987 | url=https://www.newspapers.com/article/daily-press-fortune-systems-hit-with-sui/133307217/ | title=Fortune Systems hit with suit | journal=Daily Press | page=A9, [https://www.newspapers.com/article/daily-press-fortune-systems-hit-with-sui/133307221/ A10] | via=Newspapers.com}}</ref>{{rp|A10}}
In October 1988, Tigera sold their software business to Wang Laboratories of Lowell, Massachusetts. With no remaining intellectual property or manufacturing presence, Tigera became a holding company.<ref name=1988-October-Staff>{{cite journal | last=Staff writer | date=October 20, 1988 | url=https://www.newspapers.com/article/times-tribune-tigera-makes-software-deal/133325690/ | title=Tigera makes software deal with Wang | journal=Peninsula Times Tribune | page=C-1 | via=Newspapers.com}}</ref><ref name=1989a-May-Staff>{{cite journal | last=Staff writer | date=May 9, 1989 | url=https://www.newspapers.com/article/times-tribune-ledger-page-1-of-2/133325874/ | title=Ledger | journal=Peninsula Times Tribune | page=D-1, [https://www.newspapers.com/article/times-tribune-ledger-page-2-of-2/133325895/ D-4] | via=Newspapers.com}}</ref> For many years after, the company lay largely dormant and traded as a penny stock.<ref name=1995-April-Staff>{{cite journal | last=Staff writer | date=April 24, 1995 | url=https://www.newspapers.com/article/the-palm-beach-post-4-out-of-5-competing/133326071/ | title=4 out of 5 competing stock-pickers post gains in stock-picking contest | journal=The Palm Beach Post | page=14, [https://www.newspapers.com/article/the-palm-beach-post-4-out-of-5-competing/133326089/ 15] | via=Newspapers.com}}</ref> In September 1996, by which point the company had relocated to New York City, Tigera changed its name again to Connectivity Technologies, Inc., after having acquired Connectivity Products of Leominster, Massachusetts, and changing its industry to selling wire and cable for the IT industry.<ref name=national>{{cite journal | last=Staff writer | date=September 26, 1996 | url=https://www.proquest.com/docview/268613116 | title=National | journal=Telegram & Gazette | page=E1 | id={{ProQuest|268613116}} }}</ref> Connectivity Technologies continued in this capacity until 2010, when it was merged into Methode Electronics's Data Solutions division; Methode of Chicago had purchased Connectivity Technologies some years prior to this.<ref name=website>{{cite web | date=2010 | url=http://www.contech1.com/ | title=Home page | publisher=Connectivity Technologies, Inc. | archiveurl=https://web.archive.org/web/20100326045150/http://www.contech1.com/ | archivedate=March 26, 2010}} Compare with next available archived snapshot.</ref>
==References== {{reflist|colwidth=30em}}
Category:1980 establishments in California Category:1996 disestablishments in California Category:American companies established in 1980 Category:American companies disestablished in 2011 Category:Computer companies established in 1980 Category:Computer companies disestablished in 2011 Category:Computer workstations Category:Defunct computer companies of the United States Category:Defunct computer hardware companies Category:Defunct computer systems companies Category:Defunct computer companies based in California