Mylex
| Company type | Public |
|---|---|
| Industry | Computer hardware |
| Founded | May 1983 |
| Founder | Anastasios Kyriakides |
| Defunct | 1999 |
| Fate | Acquired by IBM in 1999; later divested to LSI Logic in 2002 |
| Headquarters | Fremont , United States |
Area served | Worldwide |
Key people | M. Akram Chowdry (President and Chairman from 1986) |
| Products | Peripheral devices, expansion cards, motherboards, RAID controllers, LAN management software |
Number of employees | 397 (1997) |
| Parent | IBM (1999–2002), then LSI Logic (from 2002) |
Mylex Corporation was a U.S.-based computer manufacturer operating from 1983 until 1999. The company initially focused on creating peripheral devices and expansion cards for personal computers, especially the IBM Personal Computer. Later, it concentrated on RAID controller technology, securing a dominant 75% share of that sector by the mid-1990s. IBM acquired Mylex in 1999 for approximately $240 million and subsequently divested the division to LSI Logic in 2002.
Establishment and Early Years (1983–1985)
Founded in May 1983 by entrepreneur Anastasios Kyriakides in Miami, Florida, Mylex emerged after Kyriakides had successfully launched and taken public Lexicon Corporation, a telecommunications equipment company. Shortly following its inception, Mylex raised $3.5 million through an initial public offering. Kyriakides also initiated Regency Cruises in 1984.
Mylex aimed at the growing IBM PC expansion card and peripheral market. Its initial offerings included the Chairman card, which combined parallel communications and video control functions supporting CGA graphics. In 1986, Mylex introduced the Advanced Graphics Adapter (ADA), a graphics card designed for CAD/CAM applications built around Intel’s 80186 microprocessor. This product supported NEC MultiSync monitors and delivered resolutions up to 800×600 pixels. Key corporate customers such as IBM and Systeme Corporation accounted for 96% of the company’s unit sales in 1985.
Relocation and Motherboard Production (1985–1993)
By August 1985, Mylex had grown to a workforce of 50 and secured a patent for a handheld scanner device. This led to the development of the Text Scanner, a PC peripheral employing optical character recognition to instantly convert printed text into digital form. Despite these innovations, a downturn in sales during 1986—largely due to order cancellations from IBM and Systeme—nearly pushed the company into insolvency. In December of that year, founder Kyriakides sold a 32% stake to an investor group headed by M. Akram Chowdry, chairman of Prime Circuit Technology. Chowdry took over as president and chairman while Kyriakides retained a 10% ownership share along with a board seat.
In mid-1987, Mylex moved its headquarters from Miami to Fremont, California. By 1988, it had begun producing full motherboards compatible with IBM PCs and clones, offering upgrades for XT- and AT-class systems with Intel’s i386, i386SX, and i486 processors. However, these motherboards failed to gain significant market traction; by 1991, obsolete inventories of i386 and i486 chips contributed $800,000 to a quarterly net loss totaling $1.2 million. Although revenue increased by 28% from $35.6 million in March to $45.7 million in November 1991, net income plummeted by 81% to $487,300. Continued weak motherboard sales through 1993 motivated Mylex to pursue alternative segments within the personal computing industry.
Focus on RAID Controllers (1993–1999)
In 1993, Mylex redirected its efforts toward developing RAID controllers and LAN management software aimed at file servers and workstations—a strategic pivot that proved more successful than previous initiatives. By 1995, Mylex held a commanding 75% share of the RAID controller market and surpassed $100 million in annual revenue. In December of that year, it announced plans to acquire Santa Clara–based BusLogic, Inc. through a stock transaction initially valued at roughly $55 million; the deal closed in January 1996 with an adjusted valuation exceeding $67.9 million. This acquisition broadened Mylex’s product portfolio and manufacturing capabilities, driving revenues up to $173 million in 1996. The workforce reached its peak at 397 employees by mid-1997.
Nevertheless, between June and July 1996, Mylex’s stock price declined as major clients like Hewlett-Packard and IBM either developed proprietary RAID solutions or shifted business toward competitors such as Adaptec. In July 1997, the company reduced its staff by 27 employees and announced the closure of the BusLogic manufacturing facility. From 1997 through 1998, Mylex established a research and development center in Boulder, Colorado to enhance its innovation efforts amid intensifying competition.
Acquisition by IBM and LSI Logic (1999–2002)
In 1998, Mylex reported revenues totaling $135.7 million. In July 1999, IBM declared its intention to purchase Mylex for roughly $240 million in cash, with the transaction concluding in September of the same year. Following the acquisition, Mylex operated as a fully owned subsidiary of IBM, retaining its facilities located in Fremont and Boulder.
By July 2002, IBM divested Mylex to LSI Logic for an undisclosed amount. The sale was finalized in December 2002, after which Mylex’s assets and its remaining workforce of eight employees were absorbed into LSI Logic’s Storage Systems division headquartered in Tucson, Arizona.