Cardinal Technologies

Cardinal Technologies, Inc.

Company type	Private
Industry	Computer hardware
Founded	February 1987 (1987-02)
Founder	Harold Krall
Defunct	1997 (1997)
Fate	Acquired by Hayes Microcomputer Products
Headquarters	Lancaster , United States
Products	Modems, graphics cards, keyboards, display monitors, IBM PC compatibles, multimedia sound cards
Number of employees	220 (1993)
Parent	Hayes Microcomputer Products (from 1997)

Cardinal Technologies, Inc. was a U.S.-based computer manufacturer located in Lancaster, Pennsylvania, specializing mainly in the production of modems and various peripheral devices.

History

Established in February 1987 by Harold Krall alongside seven former employees from RCA Corporation, Cardinal Technologies purchased the Lancaster manufacturing facility from General Electric and Thomson S.A. for $4 million. The company’s founders intended to capitalize on the expanding personal computer industry, initially concentrating on modem production before diversifying into full computer system offerings.

Cardinal developed both internal and external modem models and secured original equipment manufacturer (OEM) agreements with leading computer companies, quickly establishing itself as a notable competitor within three years. By the early 1990s, their product portfolio had grown to encompass graphics cards, keyboards, and display monitors. In 1990, the firm introduced the PC 10, an IBM PC compatible machine powered by i386 processors, designed to rival IBM's PS/1 and Apple's Macintosh platforms. The following year, Cardinal collaborated with Fujifilm to create the Cardinal SnapPlus expansion card for IBM PCs, which enhanced digital image processing functionality.

The company reported its first profitable year in 1990, earning $600,000 on revenues of $33 million. Workforce numbers reached approximately 220 employees by 1993. While Cardinal managed to break even in 1991, it experienced financial losses during 1992 and 1993. Nevertheless, in 1992, it became the second largest fax modem producer in the United States, trailing only Intel.

In September 1993, Vulcan Inc., owned by Paul Allen, invested $15 million to acquire close to a 20% ownership stake. After enduring losses in 1993, the founding management team including Krall was removed in early 1994 as Vulcan undertook restructuring efforts aimed at cost reduction and increased investment in product development. By August 1994, Vulcan had expanded its control to a majority 50.35% shareholding and redirected Cardinal’s focus towards multimedia sound cards and modems.

Cardinal was acquired by Hayes Microcomputer Products in March 1997; this acquisition led to the closure of the Lancaster plant and consolidation of operations under Hayes management.