Mountain Computer

Mountain Computer, Inc.

Company type	Private
Industry	Computer peripherals
Founded	1977
Founder	James Sedin
Defunct	1988
Fate	Acquired by Nakamichi
Headquarters	Santa Cruz, California , United States
Key people	James Sedin (CEO, president, chairman)
Products	Sound synthesizers, samplers, storage devices (hard disks, tape drives), floppy disk duplicators
Number of employees	320 (1986)
Parent	Nakamichi (from 1988)

Mountain Computer, Inc.—also referred to as Mountain Hardware—was a privately owned U.S. manufacturer specializing in computer peripherals from 1977 until 1988. The company's early product line concentrated on Apple II accessories such as sound synthesizers, samplers, and storage devices including hard disks and tape drives. Later, its focus transitioned toward IBM PC and compatible systems. In 1988, Nakamichi acquired the firm.

History

Established in 1977 in Santa Cruz, California, with an initial investment of $5,000, Mountain Computer was headed by CEO James Sedin, an Olympic medalist who also held the roles of president and chairman. The business operated out of the Harvey West industrial complex.

In 1980, the company introduced the Music System, an additive synthesis sound card designed for the Apple II platform. This product gained traction within academic music programs and became recognized as the leading personal computer–based synthesizer by 1981. A collaboration formed in 1982 with Passport Designs enhanced this offering by integrating sophisticated composition software and a four-octave keyboard.

Mountain Computer entered the IBM PC market in 1982 with the launch of the Supertalker II sampler. Aimed at educational and accessibility sectors, this device allowed voice sampling for phonics instruction and voice-activated technologies. Uncommonly among third-party manufacturers, Mountain secured a license for IBM’s ISA bus patents to develop this product.

During the early 1980s, Mountain expanded into data storage solutions and emerged as a prominent original equipment manufacturer (OEM) of floppy disk duplicators as well as hard disk and tape drive units. Its Model 3200 floppy duplicator was utilized by companies such as Verbatim. In 1983, Mountain released a 20 MB hard drive compatible with Apple II and III systems, sourcing components from Quantum and NEC. The acquisition of Bering Industries, based in Fremont, California, in 1986 enhanced the company’s production capabilities.

In 1986, Quantum filed a lawsuit against Mountain alleging patent and trademark infringement related to Quantum’s Hardcard product; Mountain had produced a clone named the Drivecard that incorporated NEC drives. The legal matter was resolved through an out-of-court settlement in 1988.

By 1986, Mountain employed approximately 320 staff members and had redirected its primary focus toward IBM PC peripherals. By this time, Apple-compatible products represented only about 2% of sales, down from 95% in 1981. The company’s revenue reached $50 million in 1986, experienced a slight decline to $49 million in 1987, then increased to $60 million in 1988. Mountain ranked as the thirteenth-largest peripheral manufacturer within Silicon Valley.

In late 1988, Nakamichi purchased Mountain Computer for $45 million in cash. Following the acquisition, Mountain continued to operate autonomously as a Nakamichi subsidiary based in Santa Cruz for several years.