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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Sawtooth who wrote (4451)	12/22/1999 7:50:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 13582

Brief Background on Kyocera Kyocera Corporation is heeding the call -- Kyocera, phone home. The Kyoto, Japan-based company, long known for its ceramic semiconductor packaging, has dialed in to the cellular phone market as well. The company is a major producer of semiconductor casing and electronic components, such as capacitors, connectors, and resistors. Its ceramic division generates almost 65% of sales and makes products that can be found in such diverse items as gas turbine engines, mechanical components, knives, and artificial hip joints. Semiconductor manufacturers are turning to cost-effective, lightweight plastic casings, a trend that has forced Kyocera to devote more resources toward developing plastic laminate manufacturing technology. At the same time, Kyocera is finding new uses for its ceramic products and has diversified beyond its traditional package market to manufacture solar cells, cartridge-free printers, cameras, camcorders, and multimedia products such as videoconferencing systems. Kyocera has made efforts to diversify further by expanding its telecommunications operations and entering the health food market. The company's products are sold globally, although Japan accounts for more than 50% of sales. CorpTech Rankings History Born to a poor Japanese family in 1932, Kazuo Inamori never quite fit the mold. He went to work for Shofu Industries (ceramic insulators) in the mid-1950s, only to quit three years later after an argument with supervisors. He started Kyoto Ceramic with seven colleagues in 1959, a time when leaving an established company to start a new one was nearly unheard of in Japan; the eight men took a blood oath of loyalty to seal their commitment to the new firm. Their first product was a ceramic insulator for cathode-ray tubes. In the late 1960s the company developed the ceramic package for integrated circuits (ICs) that has made it a world-class supplier. Kyoto Ceramic started manufacturing in the US in 1971. A few years later the company began to diversify its interests when it ventured into artificial gemstones (Crescent Vert, 1977) and dental implants (New Medical, 1978). In 1979 Inamori bought control of failing Cybernet Electronics (Japanese citizens-band radio maker), using it to move Kyoto Ceramic into the production of copiers and stereos; he also formed Kyocera Feldmuhle (industrial ceramics and cutting tools, US) with West German partner Feldmuhle. The company merged five subsidiaries in 1982, forming Kyocera Corporation. The 1983 acquisition of Yashica moved it into the production of cameras and other optical equipment. That year Kyocera ran into trouble. At the time Nippon Telegraph and Telephone (NTT) was the only legal supplier of phones in Japan, and when Kyocera started marketing cordless phones without the required approval, the government forced it to recall the phones. The government abolished NTT's monopoly in 1984, and Kyocera joined 24 other companies to form Daini-Denden ("second phone company") -- now DDI. That year Inamori established the Inamori Foundation, which awards annual prizes for achievement in advanced technology, basic sciences, and creative arts. In 1988 Inamori set up Kyocera regional offices in Asia, Europe, and the US. The company bought Elco (electronic connectors, US) in 1989 and AVX (multilayer ceramic capacitors, US) in 1990. In order to diversify further, Kyocera entered into a series of alliances in the 1990s that included partnerships with Canon to produce video and electronic optical equipment, with Carl Zeiss (Germany) to make cameras and lenses, and with Cirrus Logic to make integrated chips for a cordless phone project. In 1995 Kyocera introduced the Personal Handyphone System (PHS) -- similar to cellular systems, although not as mobile, but about one-fifth the cost to use. The company's Guangdong-based optical instrument joint venture began making cameras and lenses for the Chinese market in 1996. The next year Inamori went into partial retirement with plans to become a Zen Buddhist monk. Kyocera's bottom line suffered in 1997 and 1998, largely because of the worldwide semiconductor slump and a troubled Asian economy. In 1998 the company took over failed copier maker Mita Industrial, which had been a major buyer of Kyocera's electronic components. In 1999 Kyocera acquired Golden Genesis (solar electric systems, US) and changed the company's name to Kyocera Solar, Inc. In the same year Kyocera's product line grew even more diverse as it entered the health food market and began selling mushroom products in Japan.

To: Sawtooth who wrote (4451)	12/22/1999 9:35:00 PM
From: gdichaz	Read Replies (1) \| Respond to of 13582

Sawtooth: Seeing all the doom and gloom and Eurocentric misunderstanding here, almost thought this thread might be Finnocentric (if there is such a word). Grin. Here is a post I did elsewhere - didn't want to have to redo for here. In brief look at the sale to KYO as advancing Dr J's reason for considering the Q a "start up (almost) now" data. Dr J sees data as the future for both CDMA and the Q. He took action today to advance the cause of rapid CDMA data adoption worldwide - starting from the strongest possible base - Japan. Talk : Communications : Qualcomm - Coming Into Buy Range To: limtex (56139 ) From: gdichaz Wednesday, Dec 22 1999 8:38PM ET Reply # of 56168 Limtex: Excellent analysis - comprehensive and thoughtful IMO. What is so great about Dr J is that he not only looks ahead, thinks ahead, but acts to put CDMA and the Q in the best position he can in the future - near and far. (Wonder if his car even has a rear view mirror - but suppose it must from a safety standpoint) Looking ahead this means that a very very very strong and experienced manufacturer with an excellent reputation for quality will be expanding CDMA's reach and deepening it particularly in Japan where NTT and DoCoMo better watch out for the horse rapidly gaining on the outside (with Toyota, DDI, IDO riding hard - soon on one horse). And this agreement means that Latin America, North America, will be huge areas for further CDMA growth. Latin America (expecially Brazil - where KYO has a presence as has the Q) should be watched, IMO, second only to Japan for rapid CDMA ramp up. Then there is Asia. Like wow. And KYO is already manufacturing phones in China, and has a joint venture with SK in Korea (which provides another entry to China). Watch what happens re China. (Remember the growth and earnings estimates currently factor in zero repeat zero for China - that may still be the case - total failure - but seems like the possibilites of more than zero are pretty good) But the bottom line here is data, data, data. Rapid data, data in Japan, data in Korea, and on and on. IXRTT and HDR are why Dr J. chose KYO I think. What a great way to stimulate data adoption in Japan and cut NTT DoCoMo off at the pass. WCDMA may never even see the light of day in Japan. CDMA 2000 using the entry of IXRTT and HDR will be so tough to compete with, that game may be really game, set and match already. Time will tell. But when Dr J said he would look to this deal to advance CDMA data he wasn't just talking. He has taken action on that - today. Brilliant. (But then that is hardly a surprise) Chaz