Atasi began selling products the following year in 1982 and was one of the first 5+1⁄4-inch hard disk drive manufacturers to develop and utilize closed-loop technologies.

Despite being considered a pioneer within its industry and having widespread adoption of its products in the high-end microcomputer market,[1][2] the company had financial problems throughout its lifetime.

[7][8] Most other hard disk drive companies at the time were using open-loop technologies such as stepper motors for controlling head movement.

[5][9] Stepper motors were slow and not capable of keeping up with the ever increasing capacity and density of the platters on hard disk drives.

[10][11] Hard drives utilizing stepper motors and band actuators like the Seagate ST-506/ST-412, had an access time of 85 ms average with up to 205ms and a 255-345 tracks per inch density.

[19] The 3000 series used linear voice coil actuators with closed-loop servo controls which allowed faster and more precise data access.

"The combination of high capacity and fast access, achieved in the Atasi products, is vital to the new generation of multi-user, multi-tasking computer systems.

However, due to the high production cost of their drives and having difficulty raising funding from investors, the company was failing to manufacture orders and make a profit.

[37][38] Lundell claimed that Seagate used information gained from the previous year's failed acquisition deal in designing their new ST4000 5-1/4in hard drive series.

He also claimed they illegally used Atasi's dual coil linear actuator design in the ST4000 and disregarded a confidentiality agreement made during the failed acquisition deal.

[41] Lundell cited a concurrent slowdown in the personal computer market as well as freezing of the company's credit line as the reasons for the layoffs.

It was said the deal would have attracted new customers to Computer Memories by allowing them to expand their product line, after IBM in August did not renew its contract to purchase hard disk drives from them for their PC AT.

[46] Brown was one of the founders of Atasi and by 1986 had 20 years of hard disk drive industry experience with multiple patents made.

[48] After the failed Computer Memories acquisition, he chose to come back as CEO in an attempt to revive the company and take it out of Chapter 11 bankruptcy.

[49] At the time Atasi relied mainly on contracts with french computer manufacturer Groupe Bull, which sold about 1,000 drives a month, for funding.

[50][51] In December 1986, Tandon Corporation, another large manufacturer of hard drives, announced that they were to acquire Atasi in a $5 million deal after the latter had re-emerged from Chapter 11 bankruptcy reorganization earlier.

The acquisition was short lived, as in late 1987 Tandon sold their hard disk drive unit to Western Digital in a deal for $49 million.

[66][67] In mid 1990 the lawsuit previously filed against Seagate Technology in November 1984 for patent infringement was dismissed by a U.S. District Court in California.