and more from that DJ Newswire story (heads up to Randall on the loan reference and to franco and Bob on the time frame for the technology integration)................
<<The executive vice president added that discussions are currently under way with other "major companies in noncompeting fields" for further alliances.
Joe Kaeser, chief financial officer of Siemens Semiconductor's microelectronics unit, was somewhat tight-lipped about the alliance, citing the nondisclosure terms of the pact. "What we have seen and heard (about the technology) has led us to believe the two companies can work together," said Kaeser, although he would not disclose whether he had personally seen the technology fully demonstrated. He brushed off market concerns. "Nothing is guaranteed in life," he said. "There is always some risk, but we believe this was a good deal to make. We think there's a good chance it will improve our presence in this fast-growing market."
However, he said profits could be some time away, as he estimates it will take 18 to 24 months after the technology is integrated before the companies realize gains from the alliance.
Meanwhile, Dudley sought to clarify rumors about Fonix's "unusual loans." In 1996, he said, the company made loans ranging from 30 days to six months to about a half dozen companies as part of its "cash management" strategy to boost yield. He said the loans accrued interest of 20% to 26%. The executive said the loan that generated the greatest controversy was to KLS Enviro Services Inc. (KLSE). Market watchers mistakenly believed Fonix loaned KLS money because several of its directors had equity interests in the drilling services company at the time, he said. However, he noted, they purchased those stakes after the loan was repaid, not before.>>
-Janet Morrissey 201-938-5400 |
