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=== PKARC and PKWARE === Katz left Allen-Bradley in 1986 to work for Graysoft, a [[Milwaukee]]-based [[software]] company. At the time, he had worked on an alternative to Thom Henderson's [[ARC (file format)|ARC]], named PKARC. ARC was written in [[C (programming language)|C]], with the source code available on System Enhancement Associates' [[bulletin board system]] (BBS). PKARC, written partially in [[assembly language]], was much faster. Katz had a special flair for optimizing code: besides writing critical code in assembly language, he would write C code to perform the same task in several different ways and then examine the compiler output to see which produced the most efficient assembly code. He first publicly released only PKXARC, an extraction program, as [[freeware]]. Its much greater [[Speedup|speed]] caused it to spread very quickly throughout the BBS community. Strong positive feedback and encouragement prompted Katz to release his compression program, PKARC, and eventually to make his software [[shareware]]. He founded [[PKWARE, Inc.]] (Phil Katz Software) in 1986, with the company's operations located in his home in [[Glendale, Wisconsin]],<ref>{{Cite web|url=http://www.bbsdocumentary.com/library/CONTROVERSY/LAWSUITS/SEA/pksuit.txt|title=Phil Katz (PKARC author) sued by SEA (ARC author)}}</ref> but he remained at Graysoft until 1987. Steve Burg, a former Graysoft programmer, joined PKWARE in 1988.
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