But it was too late. Margins on the Apricot computer began to be squeezed following the rise of cost-efficient, PC-clone manufacturers like Compaq Computer Corp. "It wasn't a good time to be a domestic player surrounded by a handful of world players," says Mr. Foster. He partly blames ACT's problems on its tiny U.K. sales base: Sales stagnated in 1986 at around 100 million pounds ($164 million), the high set in 1985. ACT's profit of more than 10.5 million pounds in 1985 turned into a loss of 15 million pounds in 1986, as the company jettisoned its non-IBM-compatible inventory.