Cornerstone splits software, display business

Cornerstone (San Jose) has sold its display division to its current management team, led by John Noellert. Renamed Cornerstone Display Technology, it will be recapitalized as a privately held company. Cornerstone's software division, with its flagship InputAccel document capture product, has changed its name to Input Software. Kimra Hawley, currently senior VP and GM of the software division, becomes CEO and president of Input Software; former Cornerstone CEO Thomas Van Overbeek becomes chairman. The sale, which will result in a $2.6 million charge against Q1 '98 financial results, is expected to benefit Input Software to the tune of $10.7 million. Pixel Translations will remain a subsidiary of Input Software, which will remain as a publicly held entity. The separation makes sense, according to van Overbeek, given the two divisions' inherent differences. "For the past four years, Cornerstone's display and software divisions have evolved in different directions, and have divergent technologies, markets, management issues, operational issues and growth rates," he said. "The most prudent decision was to focus on the area of our business with the greatest future growth potential ­ software." The new name reflects the company's focus on "creating products to automate and manage the information input process," be it through paper, fax, microfilm or electronic means, said Hawley.