Visual Technology, Inc.
| Company type | Public |
|---|---|
| Industry | Computer terminals, X terminals |
| Founded | 1978 in Tewksbury, Massachusetts, United States |
| Founder | Tom Foley and associates |
| Defunct | 1993 |
| Fate | Acquired by White Pine Software |
| Headquarters | Middlesex County, Massachusetts , United States |
Area served | United States |
Key people | Tom Foley (founder) |
| Products | Intelligent terminals, X terminals, Visual 200, Visual 210, Visual 400, Visual 100, Visual 110, Visual 50, Visual 1050, Commuter portable computer, X Display Station |
Number of employees | 250 (1982) |
Visual Technology, Inc. was a U.S.-based computer enterprise operating from 1978 until 1993, with its headquarters located in Middlesex County, Massachusetts. The company specialized in intelligent terminals that supported a variety of terminal protocols, predominantly those developed by Digital Equipment Corporation (DEC), and later shifted focus toward X terminal devices. In 1993, White Pine Software acquired the company.
Establishment (1978–1981)
Visual Technology was established in 1978 in Tewksbury, Massachusetts by lead founder Tom Foley alongside three associates. The startup secured $600,000 in venture funding to refurbish a mill and create its inaugural products—the Visual 200 and 210 terminals—by mid-1979. Foley brought extensive experience as a computer terminal engineer dating back to 1969 and guided the company’s initial strategy centered on adaptable smart terminals.
The Visual 200 and 210 were advanced terminals that could emulate several industry-standard protocols through DIP switch configurations, including the Hazeltine 1500, ADM-3A, DEC VT52, and ADDS 520. The Visual 210 model enhanced functionality by incorporating block-mode data transmission and programmable function keys. The company’s first-year sales totaled $700,000.
In 1980, Visual Technology broadened its offerings with the Visual 400 and 100 terminals emulating the DEC VT100 standard, plus the Visual 110 designed for compatibility with Data General Dasher terminals. By 1981, the firm had shipped approximately 9,000 units and increased annual shipments to 20,000 units, achieving $18 million in revenue alongside a $2 million profit. That August marked their initial public offering (IPO), which raised $5.5 million to expand production capacity and support growth initiatives.
Growth Phase (1982–1984)
By June 1982, the workforce had grown to 250 employees, and Visual Technology secured Burroughs Corporation—a prominent mainframe manufacturer based in St. Louis—as a client. That same month at the National Computer Conference in Houston, the company unveiled the Visual 50, an updated version of the Visual 210 terminal. This new model supported ADDS' Viewpoint and Hazeltine's Esprit terminals, incorporated line and block graphics capabilities, enabled local editing within fields, and featured smooth scrolling on screen. Ergonomic improvements included a tilt-swivel display and a lighter plastic casing.
In 1983, Visual Technology released its first standalone computer system named the Visual 1050, which operated on a Zilog Z80 microprocessor running the CP/M operating system.
Between September 1982 and January 1983, Visual Technology acquired Ontel Corporation for $9.5 million. Ontel was a video terminal manufacturer founded in 1968 and previously owned by Caesars World; it remained as a division with roughly 195 of its original 225 employees retained. This acquisition propelled Visual Technology’s revenues to $50 million by mid-1983. In May of that year, the company conducted a second IPO that generated $11.5 million to further finance expansion efforts.
Challenges and Retrenchment (1984–1988)
In November 1983, Visual Technology purchased Custom Computer Software from Wayland, Massachusetts—a firm established by Harlan La Vigne, an associate of Foley. Custom Computer was developing the Commuter: a portable computer housed in a briefcase compatible with IBM PC standards. By mid-1984, difficulties in securing key distributors for the Commuter led to disappointing sales figures and considerable quarterly losses during late 1984. Consequently, the company reduced its workforce by laying off approximately 190 employees.
Lee Data Corporation of Eden Prairie, Minnesota—a rival terminal producer—announced intentions to acquire Visual Technology in November 1983 through a $16.1 million stock exchange deal intended to maintain it as a subsidiary. However, this agreement fell through in January 1985 before completion. Lee Data paid $3 million as termination fees but obtained several patents from Visual Technology. They subsequently developed an unrealized "supermicrocomputer" concept based on the Intel 80286 architecture and marketed it under the System 2000 name in 1985.
Following Lee Data’s financial involvement and additional staff reductions, Visual Technology emerged from bankruptcy protection. Meanwhile, Wyse Technology had secured a substantial portion of the data terminal market share. Early in 1986, Visual Technology enlisted Hambrecht & Quist to lead restructuring efforts backed by a $12 million investment aimed at reviving demand for the Commuter series. Facing fierce competition within the portable computing sector, however, Visual Technology discontinued the Commuter product line in February of that year.
Strategic shift and acquisition (1988–1993)
From 1986 through 1988, Visual Technology experienced financial losses. Taking advantage of the growing X terminal market in the late 1980s, the company introduced compatible devices, beginning with the X Display Station in 1988. In August 1989, investor Hambrecht & Quist contributed $5 million, with the condition that Visual Technology discontinue its legacy DEC and IBM-compatible terminal product lines. Although the company filed for Chapter 11 bankruptcy protection in October 1989 amid restructuring efforts, it continued to generate revenue from its X Display Station series. This decisive move enabled Visual Technology to establish a specialized position alongside competitors such as HP and Network Computing Devices. The company was ultimately acquired by White Pine Software of Nashua, New Hampshire, in September 1993 for an undisclosed amount, representing a notable consolidation within the X terminal sector.