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November 5, 1997updated 03 Sep 2016 7:27pm


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.

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