Acorn Computer Group

Restructuring announcement

Acorn Computer Group plc has formed two new operating divisions, Acorn Education and Applied Risc Technologies, as part of a fundamental restructuring of its core business activities. The restructuring, which was announced on 12th September will allow the Group to focus its business more clearly on meeting the demands of specific markets and customers.

Acorn Education will build progressively on Acorn's education market leadership and strong brand reputation to increase its UK market share. Although overall staffing levels will be reduced within the Acorn Group, the number of staff dedicated exclusively to education will increase. Acorn Education will continue to focus on the sale of RISC OS based computers, but will seek to reduce Acorn's dependence on hardware sales only by providing schools with a broader range of value-added services, software and specialist products based on other industry standard technologies. Mike O'Riordan, sales & marketing director of Acorn Computers Ltd (ACL), will head Acorn Education.

Applied Risc Technologies will design and develop advanced products based on ARM technology. It will continue to develop for Acorn Education but will also seek opportunities with leading OEMs to exploit its expertise in silicon integration and hardware and software design based predominantly on the ARM microprocessor. Applied Risc Technologies, will be headed by Peter Bondar, who has recently joined the ACL board as technical director.

Acorn Education will be innovative by providing an appropriate set of products, taken from a broad range of third party products, rather than restricting itself just to the products that historically Acorn itself could have built. Because it understands the requirements of the education market much more clearly, it will be able to offer the most appropriate products, with the most relevant support services. However because of its relationship with ART, it will also be able to acquire products from ART which it will be able to offer to the education market. ART will be responsible for its business strategy but a key part of that will be to furnish the relevant and appropriate products for Acorn Education.

The Clan and enthusiast marketing will operate out of Acorn Education since we do not wish to duplicate the resources, sales and administration etc. brought together by Acorn Education. Enthusiast's market requirements will be fed back and used for future product developments in just the same way as they are today. It is not anticipated that this will result in any dramatic changes in their input or priorities. The Publishing and VARs organisations will be handled from within ART. We see Clan members as a major opportunity area, especially for future ART products and they will become a valuable market and test bed for a number of the more revolutionary ideas that ART plan to commercialise.

International sales will follow the same model as that for enthusiasts and will be supported with their own dedicated support numbers through the Acorn Education infrastructure.

For more information on the restructuring, we have a page that explains Acorn's future plans.

Full details of the current corporate position can be found in the Chairman's statement.

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