Computer Transceiver Systems, Inc.
| Company type | Public (until delisting in 1985) |
|---|---|
| Industry | Computer manufacturing |
| Founded | 1967 |
| Founder | Allen G. Jacobson |
| Defunct | 1998 |
| Headquarters | Paramus, New Jersey , United States |
| Products | Portable data terminals, computers, printers (Execuport line) |
Number of employees | 100 (peak), 60 (1985) |
| Parent | Vertex Industries (1987–1998) |
Computer Transceiver Systems, Inc. (CTSI) was a U.S.-based computer manufacturer that operated from 1968 until 1998. The company specialized in producing portable data terminals, computers, and printers marketed under the Execuport name. Initially established in Upper Saddle River, New Jersey, CTSI later moved its operations to Paramus, New Jersey, where it maintained independent operations for the majority of its lifespan. The Execuport line was among the earliest portable terminal solutions available commercially.
Establishment and Early Years (1969–1973)
Founded in 1967 by Allen G. Jacobson in Upper Saddle River, New Jersey, CTSI emerged from Jacobson’s background in defense contracting with firms such as ITT Corporation and Maxson Electronics. His experience expanded during his tenure at Western Union’s Processing Center, where he led engineering and design efforts focused on telecommunications systems. Recognizing an opportunity to enhance the portable teleprinter market—then largely dominated by Teletype Corporation’s Model 33—Jacobson and a colleague aimed to develop a more streamlined alternative.
With initial venture capital investments exceeding $200,000, Jacobson and his associates launched CTSI, appointing Peterson as president among other key executives. The company rapidly grew to employ several dozen workers and pursued an initial public offering between 1968 and 1969.
CTSI’s core offering was the Execuport series, introduced in 1969. These devices were high-speed portable teletypes and terminals designed for remote connectivity to mainframe and minicomputers. Features included a letter-sized platen, a full alphanumeric keyboard, and modem access via an acoustic coupler. Early manufacturing encountered obstacles such as issues with thermal print head durability and tape drive engineering; however, improvements in production methods eventually increased output quality.
The Execuport line initially fueled significant business expansion; CTSI’s stock price reached a high of $40 while the workforce grew to approximately 100 employees. Although the stock value fell sharply to $3 in early 1970, resulting in workforce reductions, the company rebounded following substantial order acquisitions. In spring 1970, CTSI transitioned its headquarters to a 41,000-square-foot facility in Paramus leased from Philips Norelco. This relocation was completed by mid-1971 alongside corporate restructuring that introduced new leadership roles. In May 1972, CTSI entered into a joint venture with North American Corporation—named Computer Transceiver Leasing Systems—to acquire and lease computer terminals for business clients.
Profitability (1973–1985)
CTSI experienced financial setbacks with losses surpassing $300,000 in 1971 and $473,000 in 1972. The company turned profitable for the first time in 1973, posting a net income exceeding $119,400 on revenues of $2.66 million, a significant increase from $1.76 million the previous year. This improvement was driven by a pivotal $1 million order of 550 Execuport Model 1200 terminals from Litton Industries, under a broader agreement permitting Litton to acquire up to $15 million worth of terminals through 1977. From 1973 through at least 1977, CTSI’s stock value rose steadily alongside consistent profits—earning more than $120,000 between February and August 1976 and $182,700 during the same months in 1977. Although CTSI held only a small fraction of the terminal market, by 1976 it was rated equally with Digital Equipment Corporation for producing the top terminals according to an industry survey.
Following considerable changes in executive leadership around 1978, CTSI posted its first quarterly loss since 1972 later that year. Sales stabilized near $6 million in both 1981 and 1982. Key competitors during this period included Texas Instruments with its Silent 700 series, Teleram’s Portabubble glass terminals, and 3M’s Whisper Writer 1000. Notably, in 1982 CTSI secured a contract to supply networking equipment and terminals to the Federal Reserve Bank of New York, surpassing bids from IBM, General Electric, and AT&T.
In 1983, CTSI introduced the Execuport XL and XL+ portable computers aimed at the premium personal computing segment. Both models incorporated Zilog Z80 and Intel 80186 processors; the XL+ featured an additional 16-bit co-processor and expanded memory up to 128 KB. These units included dual 5.25-inch floppy drives and a green-phosphor CRT capable of displaying up to 132 columns by 24 rows. The systems offered partial compatibility with IBM PCs and supported MS-DOS as well as CP/M operating systems. By 1985, CTSI broadened its offerings with the Execuport 2400 series label printers designed for microcomputer integration.
Downturn, bankruptcy, and mergers (1985–1998)
By mid-1985, CTSI’s workforce numbered approximately 60 employees. In July of that year, the Federal Reserve Board removed CTSI from the over-the-counter stock market due to failure to comply with listing standards. The company filed for Chapter 11 bankruptcy protection in late 1986 while carrying bank liabilities totaling $2.2 million. In July 1987, Vertex Industries based in Clifton, New Jersey acquired CTSI by investing $250,000 and assuming its outstanding bank debts. CTSI functioned as a subsidiary under Vertex until 1998. Founder Jacobson left the firm in June 1988 to join Computer Integration Associates. Eventually, in 1998 Vertex spun off CTSI, which then merged with Mortgage Plus Equity and Loan Corporation located in New York.