Injection for Adata

Press, 30 January 1986, Page 24

Injection for Adata

By

NEILL BIRSS

Northrop Instruments and Systems, Ltd, and the Development Finance Corporation are pumping funds into Adata Software, Ltd, of Christchurch, for what will be a make or break year for the computer company. Adata Software’s product is EXSYS, an advanced software generation system designed to put computer systems design in the hands of users, with little or no mediation by software experts. The name is an acronym for expert system, software which is designed to deduce answers from facts.

The front man for EXSYS at the beginning, Mr Roger Nixon, is now in America, and will stay there as North American market manager. His partner, Mr Peter Roselli, who has run development and administration since Mr Nixon left New Zealand, will now concentrate on software development

and maintenance. The general manager’s function will be carried out by a visiting executive from Northrop, who will not be resident in Christchurch, where a team of about 20 works on EXSYS.

Northrop has taken a 20 per cent interest in Adata, which will be initially held by cumulative preference shares, and the DFC, obviously anxious to protect its investment, has expanded its interest. Northrop and the DFC now hold a controlling interest in the firm. Mr Nixon still holds a stake of about 30 per cent, and Mr Roselli an interest of 15 per cent. About six employees hold about 2 per cent between them. Mr Roselli agreed last evening that this year would be the make or break period for the company. “I think we need about 10 sales in the year,” he added. The company had a setback recently with the announcement that the

Canterbury Public Library, had changed its mind and would not now buy EXSYS to run on a Data-General computer it bought for the software.

Mr Roselli was reluctant to talk about the dispute with the Christchurch City Council last evening, but said that “things were happening” about the decision, which Adata has been reluctant to accept. Unlike Burroughs LINC, which had made its mark before coming into the limelight, EXSYS was launched, long before it was completed, in a blaze of publicity by Mr Nixon. The rationale was that this was the way to help raise risk capital for an enterprise so hard to explain to the traditional investor. The marketing concept of selling the sizzle not the steak may have been overdone on this occasion. The advantages sought are mouthwatering, but everyone, perhaps including Mr

Nixon, underestimated the amount of work and cost in getting such a product ready for the market. No such very ambitious project could have got a fraction as far as it has without Mr Nixon’s drive and unflinching confidence in the concept in the first place. He had to get installations to build customer confidence.

Mr Roselli says that Adata has now sold a number of EXSYS systems in New Zealand including to a farmers’ cooperative group in the North Island, to UEB, and to an engineering consultant in Auckland. He says there have been three sales each in Australia and North America, and this week the go-ahead was given for an installation in Kuala Lumpur.

Adata is still at a critical stage of its ambitious plans. It would be excellent for Christchurch if it were to succeed, complementing the international success of BurroughsLINC.