Quality Micro Systems

Quality Micro Systems, Inc.

Company type	Public (until acquisition)
Industry	Computer hardware
Founded	1977 (1977) in Mobile, Alabama, United States
Founder	James Busby
Defunct	2000 (2000)
Fate	Acquired by Minolta and became subsidiary
Successor	Minolta-QMS (after rebranding)
Headquarters	Mobile , United States
Area served	Worldwide
Key people	James Busby (founder and CEO until 1997), Edward E. Lucente (CEO after 1997)
Products	Industrial label printers, laser printers for PCs and workstations, raster image processors
Owner	Minolta (from 1999 majority stake, full ownership in 2000)
Number of employees	1,500 (1987) (1987)
Parent	Minolta (from 1999 majority stake)

Quality Micro Systems, Inc. (QMS), which later became known as QMS, Inc., was a United States-based computer hardware enterprise operating from 1977 until 2000 in Mobile, Alabama. Established by James Busby with the initial goal of manufacturing industrial label printers, QMS transitioned into a prominent producer of both consumer and professional laser printers designed for personal computers and graphical workstations. In 2000, the company was acquired by the Japanese electronics giant Minolta and subsequently operated as its subsidiary.

History

QMS was founded in 1977 by engineer James Busby in Mobile, Alabama. The company’s origins trace back to Busby’s development of a prototype controller board that transformed large-format impact printers into label printers capable of producing customizable labels and barcodes. Starting from a home-based workshop, QMS released its first product, the Magnum 300, in 1978—a controller board enhanced for compatibility with popular Printronix impact printers. Soon after, QMS secured distribution agreements with leading companies such as IBM and Burroughs, broadening its offerings to include raster image processors (RIPs). Mike Dow, Busby’s brother-in-law and future mayor of Mobile, joined the company as sales manager.

In 1982, QMS expanded its global footprint by opening a manufacturing facility in the Netherlands to serve European markets. By January 1983, the company employed around 100 staff members and went public while simultaneously beginning construction on a larger production plant in Mobile. That same year, QMS introduced its inaugural laser printer model, the Lasergrafix 1200, which delivered output at 12 pages per minute with a resolution of 300 dpi—ranking among the earliest desktop laser printers available. This product’s success helped QMS achieve $14 million in sales and $2.4 million in net income for 1983, marking a 60% increase in profits compared to the previous year.

In April 1984, QMS secured a $2 million contract with Intergraph to provide laser printers for their Unix-based CAD/CAM workstations. Shortly thereafter, QMS expanded its laser printer range by launching the Lasergrafix 800 tailored for personal computers and the Lasergrafix 2400 aimed at high-end desktop publishing applications. The following year, QMS released the QMS Kiss, notable for being the first laser printer priced below $2,000.

In July 1984, the company restructured as QMS, Inc. and acquired Merriwether Circuits Design (MCD), a Florida-based printed circuit board manufacturer. This acquisition led to the creation of Quality Circuits, Inc. (QCI), a contract PCB production division with plans for further growth.

By mid-1987, QMS had grown to employ approximately 1,500 people worldwide and reported record earnings of $119 million on revenues of $9 million—a reflection of robust expansion fueled by laser printer sales. That year also saw QMS enter into a $50 million agreement with Hewlett-Packard (HP) to develop and market JetScript—a PostScript RIP implemented on an ISA card for IBM PCs—with HP handling resale of these boards. However, following the stock market crash in October 1987 and DRAM shortages in early 1988 causing cost increases, QMS recorded revenues of $187 million but suffered losses amounting to $5 million. HP ended their partnership in 1989 after redesigning LaserJet printers and switching suppliers, compelling QMS to write off $10 million worth of inventory.

To restore financial stability during this turbulent period, Busby appointed Charles Daley as CFO; Daley implemented stricter accounting practices and budget controls while continuing to support research and development efforts. By 1989, QMS had returned to profitability.

In March 1988, QMS expanded its printing technology portfolio by acquiring Imagen Corporation for $17.5 million. In 1990, it launched Japan’s first color laser printer capable of printing kanji characters and introduced the QMS 410—the industry’s first auto-switching laser printer that automatically detected page description languages such as PostScript or PCL without requiring manual user configuration.

From 1993 through 1995, as laser printers became increasingly commoditized among PC users, QMS underwent three rounds of workforce reductions and suffered substantial losses—reporting a $44.2 million deficit during fiscal year 1995 alone. Following additional layoffs in 1997, Busby stepped down as CEO and was replaced by Edward E. Lucente, an executive with prior experience at IBM.

In June 1999, Japanese conglomerate Minolta acquired a majority stake of 57% in QMS for $64 million. By April 2000, the company was rebranded as Minolta-QMS to signify this partnership; later that year Minolta completed full ownership and took it private. After Minolta merged with Konica in 2003 to form Konica Minolta, the QMS brand was phased out from Mobile operations.