New Media Corporation

New Media Corporation

Company type	Private
Industry	Computer hardware
Founded	1992
Founder	Carl Perkins, Rod Corder, Eric McAfee
Defunct	2003
Headquarters	Irvine, California , United States
Key people	Carl Perkins (CEO), Rod Corder (VP of Engineering), Eric McAfee (CFO, until 1995)
Products	PC Cards, modems, DRAM cards, sound cards, SCSI host adapters, Ethernet adapters, wireless DSSS network adapters
Number of employees	140 (peak in 1995)

New Media Corporation, also referred to as New Media Technology Corporation, was a U.S.-based computer enterprise operating from 1992 until the early 2000s. This privately owned firm, located in Irvine, California, focused on the development and production of PC Cards, a widely adopted laptop expansion card format throughout the 1990s and early 2000s.

Establishment (1992–1994)

In March 1992, entrepreneurs Carl Perkins, Rod Corder, and Eric McAfee founded New Media Corporation. Perkins and Corder brought with them valuable ASIC design expertise gained at Rockwell Semiconductor Systems and Togai InfraLogic. After departing Togai InfraLogic and a period at ITT Inc., they recognized a promising opportunity within the nascent PC Card market for laptops. To strengthen the company’s financial management, they appointed Eric McAfee as chief financial officer.

As the first American company to manufacture PC Cards, New Media swiftly secured significant partnerships with firms such as Toshiba, Hewlett-Packard, and Compaq. The company supplied DRAM-based memory expansion cards on an OEM basis, enabling these partners to market the products under their own brands as optional laptop accessories. Within its inaugural year, New Media recorded $8.5 million in revenue and began distributing its own branded PC Cards through retail and reseller channels.

December 1992 saw the introduction of the PalmModem, a modem specifically designed for Hewlett-Packard’s HP 95LX palmtop computer. This product enhanced New Media’s industry standing and broadened its clientele to include AST Research, Gateway 2000, NEC, and Zeos. Between late 1993 and late 1994, the company’s employee count nearly doubled from 54 to over 100.

By the end of 1993, New Media had expanded its offerings beyond modems and DRAM cards to encompass sound cards, SCSI host adapters, Ethernet adapters, and wireless DSSS network adapters. Annual sales reached $40 million by year-end, supported by expanded retail presence in wholesale clubs like Costco and major retailers such as Walmart. By mid-1994, production scaled to 25,000 units monthly following the recruitment of Michael P. Halloran as head of marketing.

AMP investment and downturn (1994–2003)

New Media’s rapid expansion attracted investment from AMP Incorporated, a Pennsylvania-based electronic connector manufacturer, which acquired a 10% stake for $6.5 million in May 1993. AMP increased its ownership to a controlling 25% with an additional $9 million investment in 1994, gaining boardroom control. Early in 1995, AMP facilitated the removal of co-founder and CFO McAfee; Perkins remained CEO while Corder served as vice president of engineering. McAfee filed a wrongful termination lawsuit against New Media; Perkins resigned as CEO in September 1995 but continued working within the legal department.

By 1995, New Media commanded approximately 10% of the PC Card market share, competing against larger companies such as Practical Peripherals, Xircom, and 3Com. Workforce numbers peaked at 140 employees that year. However, by late 1995 the company lagged behind in modem speed advancements and faced two legal disputes—including one alleging industrial espionage against a competitor—leading management to contemplate either selling the business or pursuing an initial public offering. In December 1995, New Media reduced its staff by 10% due to improved manufacturing efficiency.

Throughout the late 1990s, New Media remained privately held but confronted another significant lawsuit in July 1997 initiated by General Patent Corporation over claimed patent violations; similar litigation targeted IBM and USRobotics. The matter was resolved in 1998 when General Patent took an equity position in New Media. The firm stabilized with roughly 30 employees from 1998 until 2000 but ultimately ceased operations in 2003 as the emergence of ExpressCard technology rendered PC Cards obsolete.