View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 5, 1997updated 03 Sep 2016 7:27pm

ROCKWELL EARNINGS DOWN AFTER SWITCH TO K56 MODEMS

By CBR Staff Writer

Electronics components and semiconductor company Rockwell Semiconductor Corp, has reported steady growth in the fourth quarter with net profits up 12.4% to $109m, or $0.53 per share, and turnover up 8.9% at $2.08bn. But Rockwell is having problems fabricating semiconductor chips. The semiconductor business only accounts for 20% of its revenues, but has held back yearly profits – bringing them down 11.3% to $644m. Rockwell Chief Executive Officer, Don Davis, blamed the division’s slow down, with yearly earnings 30% lower on the same sales, to the lower cost of its mature V.34 modem products due to competition with its K56Flex modems, and large research and development investments made in its digital signal processing. Rockwell is predicting weak demand for its semiconductor division’s products in the first half of 1998, with demand strengthening for its K56Flex products when a final high speed modem standard is decided next year. Rockwell has also received a cash injection of $445m for the spin off of its automotive components business, and plans to initiate a $500m share buy-back program.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU