Netcom's loss widens and stock drops; officials warm a bit to takeover talk

Article Abstract:

NETCOM On-Line Communication Services' losses increased to $11.4 million during its 2nd qtr, despite an impressive improvement in revenue. The Internet access provider has been struggling in a highly competitive market and the company's stock price declined 21 percent, closing at $17.438, on the news. $4.6 million of the 2nd qtr loss resulted from costs associated with the company's establishment of international operations. The loss is also associated with the development of a second customer-service center in Dallas, moving employees to a new facility in San Jose, and tight credit policies. The company had a $2.9 million loss in 1995's 2nd qtr. Its 2nd qtr 1996 revenues reached $28 million, more than twice that of last year's same period. NETCOM has been cool to the idea of a takeover, but now may be receptive to a good offer.

Finance, Internet, Internet service providers, Internet service provider, Company sales/revenue, Company sales and earnings, Company losses, NETCOM On-Line Communication Services Inc., NETC

---

At a high-tech firm, the daily stock price is everyone's business

Article Abstract:

The stock options offered by many high-technology companies provide dreams of wealth, or at least a secure retirement, for their employees. Many of these companies share at least 20 percent of their stock with their employees. The prospects are exciting, but downturns in the stock market can be disturbing. Many stock options give employees the right to purchase company stock at the price on their hire date. This can be extremely beneficial when a company's stock price accelerates, but the lack of predictability in the market makes it difficult to make any long-term plans. High-tech stocks have declined as investors react to unexpectedly low results of some of the industry's major companies. Ascend Communications is a typical high-tech company, in that it has been extremely successful, but its stock price has been declining.

Planning, High technology industry, Forecasts and trends, Stock options, Market trend/market analysis, Securities, Employee benefits, Stock markets, Stock Market, Ascend Communications Inc., ASND

---

Siemens insists it's no slumbering giant; German electrical-goods firm aims to step cautiously

Article Abstract:

Analysts wonder if Siemens AG has been aggressive enough in instituting cost-cutting measures. The fifth-largest electronics and electrical products company in the world has announced plans for 13,000 job cuts out of 413,000 total workers, a relatively small number in comparison to the aggressive cuts being made by rivals IBM and Matsushita Electric Industrial Corp. Siemens Pres and CEO Heinrich von Pierer says the firm is moving cautiously in making cutbacks. The executive is looking for a strategic partner for Siemen's unprofitable Siemens Nixdorf Informationssysteme AG subsidiary, the biggest computer maker in Europe. Siemens is backing away from its decade-old strategy of big acquisitions. The company expects to continue to lose money as it enters the eastern German market.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Management, Electronics industry, Business planning, Siemens AG, Company Profile, Cost control, Cost Reduction

Similar abstracts:

• Abstracts: Simplified employee pensions: they offer an easy way for a small business to set up a retirement plan. Pensions: The Surprise Package in Corporate Marriage
• Abstracts: Economic and stock market commentary. Market monitor. Model portfolios: recent developments
• Abstracts: Willingness of American industrial buyers to source internationally. Framing information to enhance corporate reputation: The impact of message source, information type, and reference point
• Abstracts: Strategic investment decision processes and organizational performance: an empirical examination. Of mad cows and marmosets: from rational choice to organizational behaviour in crisis management
• Abstracts: Accruals, investment, and the accrual anomaly. Sale of a business: how a deal was saved. Case study: how much to pay for a business or other capital investment

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.