Prometheus Products

Prometheus Products, Inc.

Company type	Subsidiary (after acquisition by Sierra Semiconductor)
Industry	Computer peripherals
Founded	January 1981 (1981-01)
Fate	Acquired by Sierra Semiconductor in 1994; divested in 1996
Headquarters	Tualatin , United States
Products	Modems, sound cards
Parent	Sierra Semiconductor (1994–1996)

Prometheus Products, Inc. was a U.S.-based manufacturer specializing in computer peripherals from 1981 until 1996, with a primary focus on producing modems and sound cards for personal computing devices.

History

Founded in January 1981 and incorporated in Fremont, California, Prometheus Products initially concentrated on creating peripherals for the Apple II home computer line. In 1984, the company pivoted towards modem manufacturing after designing a modem that utilized the cost-effective Intel 8031 microcontroller as a digital signal processor, replacing more expensive analog components. That same year, Tom McShane assumed the role of chairman and oversaw an expansion that included establishing two facilities in Fremont dedicated to manufacturing and research and development.

By 1987, the company’s revenue neared $7 million, placing it among the top ten modem producers worldwide. Between 1987 and 1989, Prometheus relocated its operations to Tigard, Oregon. In 1992, it merged with Technology Concepts, Inc., a firm based in Belmont, California known for producing fax machines and advanced voice modems. By early 1994, Prometheus had moved its headquarters again to Tualatin, Oregon.

In early 1994, Prometheus introduced its inaugural sound card lineup—the Aria 16 series—equipped with Sierra Semiconductor’s Aria chipset. These cards supported 32-voice polyphonic wavetable synthesis alongside Sound Blaster–compatible FM synthesis. Marketed as affordable options, the Aria 16 series earned favorable evaluations and were incorporated into preassembled systems by companies such as IBM and DEC.

During the early 1990s, modem sales suffered due to reduced innovation pace and quality issues stemming from manufacturing in Taiwan. In October 1994, Sierra Semiconductor acquired Prometheus Products and maintained it as a subsidiary based in Tualatin. Sierra appointed Jack Murphy to spearhead a turnaround strategy that involved relocating production back to the United States and revamping management by bringing in experienced personnel from Practical Peripherals, Apple, and Tektronix.

Despite these initiatives, by late 1995 Prometheus reported losses amounting to $4.6 million on revenues of $19 million. In January 1996, Sierra Semiconductor announced its intention to divest the Prometheus division.