Analysts Get Sneak Preview Of Reuters's Art-2; New Terminal Will Run Instinet Emulation Under Windows

In its tradition of keeping analyst presentations several steps ahead of reality, Reuters Holdings PLC showed off a prototype of the fabled ART-2 (MTR, June 1987) to a July 29th New York meeting. The new box won't see commercial service until next year. When it does, its first assignment will be for Instinet.

Essentially, the ART-2 -- or "ART 2000," as it may become known -- replicates the functionality of the Instinet terminal in one window, while providing simultaneous access to the Reuter Integrated Data Network (IDN). The model shown to analysts is a "very advanced development prototype," says product manager Tim Hillyar, but the final version "will not look much different to the user." ART-2 still faces 2-3 months of alpha testing and an equivalent period of beta testing before commercial release next year.

Like its predecessor, ART-2 is built around an 80286-based NCR AT clone running Microsoft Windows. Unlike the old ART, however, ART-2 requires two full-duplex lines, one to tie into the Instinet network at 1200 bits/second and one to access IDN through the nearest Reuters data center. At present only one ART-2 can be supported by each pair of lines, but development personnel at Reuters's Hauppauge, NY research center say it may be possible to improve on that ratio.

Because of the memory requirements for handling the IDN feed in real time, the ART-2 has more than two Mbytes of RAM and a 40+ Mbyte hard disk. The 752x410 display resolution of the ART-2 also exceeds that of its predecessor.

ART-2 initially will be installed as a standalone workstation. Plans are being hatched, however, to develop an IDN file server capable of supporting multiple ART-2s on a local area network (MTR, March 1987). Intel Corp.'s new iRMX System 320 -- an 80386-based box with a real-time operating system -- will serve as the engine for the IDN server.

While the IDN data available through ART-2 is currently limited to equities prices, Reuters hopes to add a consolidated, fully cross-indexed news feed to IDN before ART-2's roll-out. Besides Instinet functionality, applications planned for ART-2 include tick-by-tick quote retrieval, dynamically updated tick graphs -- up to 10 per screen -- limit-minding, and portfolio management using Reveal, which is still undergoing adaptation to the MS Windows environment.

Analysts also heard the happy news that first-half net earnings rose to $82.2 million ($1.18/ADS), a 44 percent increase over the $57 million ($.83/ADS) earned in the first half of 1986. Revenue was up 49 percent, to $645 million from $432 million a year ago.

Reuters North America recorded revenues of $128 million for the first half, of which Rich, Inc. contributed just over 50 percent -- $64.7 million. In the first half of 1986, RNA revenues were $83 million, of which Rich contributed $39 million.

Installed video terminals increased by 41 percent -- from 85,799 a year ago to 121,278 as of June 30th, 1987. The latest figures include 11,530 Rich keystations receiving Reuter data, 3,539 pocket terminals, and 456 Schwarzatron terminals.