In the manual for Ron Scotts "HiRes QFX" Version 2 (Copyright 1988-1991 Ron Scott - Ron Scott, Inc.) is the following section:

[Page 51]Chapter 5: General Information

"The concept of an alpha channel is fairly new and not implemented by many graphics programs, but is very powerful and fully utilized by the HiRes QFX functions. "

[Page 52] "Selecting the TGA button as the file TYPE activates an additional row of buttons labeled PIXLS. These buttons select the part of the image to use as the shape, IMAGE or ALPHA pixels. IMAGE defines the shape by non-black pixels. ALPHA uses the alpha channel of the image file. Use ALPHA only if the file is a 32-bit image with an alpha channel."

"The ALPHA Button

This button selects the alpha channel as the shape. This is a separate monochrome image stored in the graphics adapter or in a 32-bit image file."

Scans of manual pages (click on image for the original 200dpi PNG scan):

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