Alpha Micro Signs Deal

Santa Ana-based Alpha Microsystems has signed a multimillion-dollar deal to provide installation and warranty service programs to the country’s second-largest personal computer distributor, the companies said Monday.

The announcement by Alpha Micro and Tech Data Corp. of Clearwater, Fla., is part of Tech Data’s plan to enter the business of manufacturing and marketing no-name personal computers, known as “white boxes.”

The Tech Data strategy directly challenges Santa Ana-based Ingram Micro Inc., which pioneered the practice and is the largest PC distributor.

Alpha Micro’s deal with Tech Data, the value of which was not disclosed, comes less than two months after Alpha Micro signed a similar deal with Ingram Micro that was valued at $3 million. In both cases, Alpha Micro supplies computer warranty and installation services to end-user customers, primarily businesses.

The deal also gives Alpha Micro an entree to market other computer products and services to those customers, including networking and systems integration.

The announcement by Alpha Micro, which has suffered four straight annual losses, pushed the stock up 22% Monday. The shares closed at $2.75, up 50 cents.