redwing- this could also be an indirect reference to edig's stb work -since stbs will also include "the use of, or interfacing with, satellite radio."
for example note the reference between the two in the recent article re Philips--
Philips trims set-top box business
By Reuters
June 27, 2001, 5:40 a.m. PT
AMSTERDAM, Netherlands--Philips Electronics unveiled its second cutback in two days on Wednesday, saying it aimed to stem losses in its digital-networks unit by limiting the diversity of set-top boxes it sells in the United States.
Philips, which announced it would close its mobile-handset business on Tuesday, also said it would pursue possible partnerships in a bid to gain scale in the set-top box market.
The digital-networks unit, which makes set-top boxes for digital interactive television and is part of the consumer electronics division, suffered a $35 million (40 million euro) operating loss in the first three months and has been in the red for the past two years.
Analysts say Philips is stretched by trying to produce different models for, and forge relationships with, each of the cable, satellite and terrestrial television markets.
An announcement about the digital-networks unit had been expected. Philips shares were down 0.5 percent at 10 a.m. here, while the Dow Jones pan-European tech index was up 0.3 percent.
Change of Course
The plan to seek a set-top box partner, however, is a change of course for Philips, which had previously appeared confident of going it alone.
Europe's largest maker of consumer electronics and lighting and number three in semiconductors had earlier looked at buying General Instrument, then America's second-largest set-top box manufacturer, but decided it was too expensive
Motorola bought General Instrument in January 2000, paying a price that industry sources said was twice as high as the amount Philips had considered, to become a leading player in the set-top market.
Gerard Kleisterlee, Philips' new president, told analysts on Wednesday that Philips would identify and deal with low-growth, low-return businesses in order to achieve its three-to-five-year target of 10 percent average annual sales growth, 15 percent average annual earnings growth, 10 percent margin on income from operations and more than 30 percent return on net assets.
Kleisterlee also said Philips would seek to strengthen its semiconductor and components divisions.
On Tuesday, Philips said it would shut its mobile handset business and take a $258 million hit. It will transfer some of its assets to a joint venture with China Electronics Corporation (CEC).
Today's announcement is the latest in a series of cost cuts this year, championed by Kleisterlee.
In April, the company said it would take a $301 million charge for structural underperformers, particularly in components and consumer electronics, with 6,000 to 7,000 job cuts.
Of these, 2,500 will be cut from its cathode ray tube joint venture with Korea's LG Electronics and another 3,000 to 4,000 mainly from its components business.
A further $77 million charge will be taken in the second quarter to cover the transfer of a semiconductor production line from Albuquerque to Fishkill, both in the United States.
Story Copyright © 2001 Reuters Limited. All rights reserved
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