This and that:
The merger of Information and Communications on October 1, 1998, created the largest Siemens business segment. At present, the segment generates sales of over DM50 billion and has some 110,000 employees in the three new Groups: Information and Communication Networks, Information and Communication Products, and Information and Communication Services. The latter Group is a legally separate unit operating under the name Siemens Business Services.
These measures will give us a solid base for the convergence of
information and communications technologies. Today's users are not
interested in what kind of networks are used for transmitting voice and data; they want the best and most cost-efficient solutions, no matter what technology they are based on. And Siemens is traditionally strong in both traditional telephone technology and data transmission systems. We are working on leading-edge solutions in specific individual fields as well.
The new structures of the Industry and Information and Communications
segments affect roughly two-thirds of Siemens. These moves required
extensive preparation and numerous decisions. After all, the moves
affected not only the Groups' headquarters, primarily located in
Germany, but all their production and sales units throughout the world. We are quite pleased that we successfully completed these changes without disrupting operations.
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Wired News
February 18, 1999
THE MOST WIRED NATION ON EARTH
Canada's finance minister announces a four-year C$1.8 billion spending plan
to connect every corner of the northern nation.
wired.com
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from 2/4/99 release
"While we are disappointed in the shortfall with respect to analysts' expectations, a careful analysis of the quarter's performance confirms the underlying strength of the Company," said Alan Lutz, President and Chief Operating Officer, Newbridge Networks. "The economic slowdowns in Latin America and Asia negatively affected sales of our mature product lines. However, ATM equipment orders increased by approximately 45 percent compared with the preceding quarter, significantly exceeding the historical 10 percent sequential rate of growth in WAN packet orders, and exceeding our short-term ability to fulfill these orders. I remind you that IP + ATM is the Company's long-term growth engine. We could not fully match our available parts on hand to the large upswing in customer demand, preventing us from making up for the economic slowdowns in Latin America and Asia. We enter the fourth quarter with record backlog.
"SG&A expenses decreased in the quarter, allowing us to generate approximately the same earnings from operations as last quarter. The Company's cash balance improved significantly in the quarter and is now in excess of $900 million.
"We expect fully diluted earnings per share for the first nine months of fiscal 1999 to be approximately $1.20. We do not expect to recover the 5 cents U.S. shortfall in net per share earnings from operations, relative to analysts' expectations."
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Sector: Technology
Industry: Computer Networks
Employees: 6,336
Market Cap (Mil) $ : 4,338.87
Complete Financials: Oct 1998
Investor Relations.
Key Ratios & Statistics
Price & Volume Recent Price $ 24.44 52 Week High $ 39.88 52 Week Low $
15.44 Avg Daily Vol (Mil) 1.31 Beta 1.73 Share Related Items Mkt. Cap.
(Mil) $ 4,338.87 Shares Out (Mil) 177.55 Float (Mil) 134.90 Dividend
Information Yield % 0.00 Annual Dividend 0.00 Payout Ratio (TTM) % 0.00 Financial Strength Quick Ratio (MRQ) 3.46 Current Ratio (MRQ) 4.22 LT Debt/Equity (MRQ) 0.29 Total Debt/Equity (MRQ) 0.29 Valuation Ratios
Price/Earnings (TTM) NM Price/Sales (TTM) 4.03 Price/Book (MRQ) 4.60
Price/Cash Flow (TTM) 69.23 Per Share Data Earnings (TTM) $ -0.23 Sales (TTM) $ 6.06 Book Value (MRQ) $ 5.31 Cash Flow (TTM) $ 0.35 Cash (MRQ) $2.89 Mgmt Effectiveness Return on Equity (TTM) -3.97 Return on Assets (TTM) -2.72 Return on Investment (TTM) -3.17 Profitability Gross Margin (TTM) % 59.04 Operating Margin (TTM) % -5.33 Profit Margin (TTM) % -3.20Mil = Millions MRQ = Most Recent Quarter TTM = Trailing Twelve Months
Doug the margins going forward will depend on several factors. Demand for product. The mention 2/4 re. the inabilty to meet demand will improve as new fab capacity is brought on line. The relative competition for product between companies. ie do you have a product that someone is willing to pay a premium for ie quality, diversity of features, scalability, speed, worldwide support, "old world" ties ie the relationships between telcos particularly in Europe/Asia/S. America ie Siemens. Going forward based on the projections I think that the margins for ATM/IP will grow as the SG&A flatten the marketing cost are spread over the VAR. That said all technology is life cycle dependent and I see worldwide demand exploding for broadband bundled services driven initially by governments and big business. Once the infrastructure is in place, switching backbone..the rollout of last mile technology: use of broadband will dramatically increase. The small end user with the infrastructure deployed will then be added to the mix bringing cost for providers to for soho and individuals which will then lend itself to further rollout of broadband to smaller markets. The bottom line I don't know what the margins will be. That said, I believe we are just at the early stages of deployment of new telecommunications {bundled broadband} that will empower those early initiators. NNs competition only hurts margins if they have better product, better distribution, better support, or stronger affiliations. With the Siemens /COMS/NN clout in WANLAN/PCS my projections are (baring a further global slowdown) that the growth in revenues and margins will expand for NN several years. All IMO
Regards
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