SELIGMAN
[PICTURE OF HIGHWAY UNDER STARRY SKY]
COMMUNICATIONS
AND INFORMATION
FUND, INC.
Seeking capital appreciation by investing in innovative
communications and information-related industries.
JUNE 30, 1995 * MID-YEAR REPORT
<PAGE>
J. & W. SELIGMAN & CO. INCORPORATED
Over the
Long Term
1986...
"Your Fund's broad charter allows it to participate in all aspects of the
information explosion. During the year, portfolio policy focused on providing a
broadly diversified base of companies with unique products and services and
dominant positions in their niches of the marketplace."
- - Fred E. Brown,
Fund Chairman
1984 - 1988
1990...
"The technology sector is expected to benefit almost immediately from the
growing global need for productivity-enhancing computer hardware and software,
and your Fund is well positioned in two of technology's fastest growing
divisions."
- - William C. Morris,
Fund Chairman
1989 - Present
COVER PHOTO
Highway Stars. Seligman Communications and Information Fund invests in companies
building the Information Superhighway and speeding us down the road to the
future.
TIME IS THE TEST
In an industry that has changed dramatically in recent years, it's comforting to
know that stability, tradition, and consistent professional service can still be
found in an investment management firm.
J. & W. Seligman & Co. Incorporated has been providing financial services for
more than 130 years. From its beginning, Seligman has adopted a long-term
approach to making money for its clients, by managing investment products and
services of the highest quality. Today, Seligman manages the Seligman Group of
Funds, which offers investors more than 30 fund options.
A PLACE IN HISTORY
Established in 1864, Seligman played a
major role in the geographical expansion
and industrial development of the United
States. The firm helped finance the [PICTURE OF JAMES, JESSE, AND
westward path of the railroads and the JOSEPH SELIGMAN]
building of the Panama Canal. In the
late 1800s and early 1900s, the firm was
instrumental in financing the fledgling automobile and steel industries.
Seligman also participated in the original underwritings for some of the
nation's most prominent companies, including: General Motors, Victor Talking
Machine Company, United Artists Theater Circuit, and Maytag. In 1929, Seligman
introduced Tri-Continental Corporation -- which today is the nation's largest
diversified closed-end investment company.
SELIGMAN COMMUNICATIONS
AND INFORMATION Fund
Seligman Communications and Information Fund, established June 23, 1983, seeks
capital appreciation by investing primarily in the securities of companies
operating in all aspects of the communications, information, and related
industries. Since its inception, Seligman Communications and Information Fund
has helped investors seek their financial goals by providing growth of capital
through superior returns.
<PAGE>
FELLOW
SHAREHOLDERS
We are pleased to provide you with Seligman Communications and Information
Fund's June 30 Mid-Year Report.
After four years of expansion, the recent stream of economic reports shows
that the long awaited slowdown is under way. Evidence of this current slowdown
and moderate inflation led the FRB to lower short-term interest rates in early
July -- the first decrease in three years. In the financial markets, with signs
pointing toward a slowing economy and prospects favoring declining interest
rates, the bond market rallied this past quarter. Investor demand for equities
also continued to be strong, as shown by the Dow Jones Industrial Average moving
to new highs and all broad market equity indices posting positive returns. It is
important to note that even though the Standard & Poor's 500 Composite Stock
Price Index (S&P 500) posted impressive gains, up 20.21% for the six months,
only a few sectors of the market, notably technology and financial, were good
performers, and only a handful of stocks consistently performed better than the
S&P 500 itself.
Looking ahead, the economy is likely to regain strength later this year as
consumers respond to lower interest rates, exports are stimulated by a weaker
dollar, and business capital spending remains strong.
As you know, Seligman Communications and Information Fund was closed to new
investors on June 30. This decision was made because we felt it was in the best
interest of the Fund's shareholders. The Fund has successfully provided its
shareholders with above-market returns, and we will strive to maintain this
record going forward. As you will see in the interview with your Portfolio
Manager, there remain many investment opportunities within the communications
and information fields; therefore, we are optimistic about your Fund's future.
For a more detailed discussion of your Fund and the future for the
technology sector, please refer to the interview with your Portfolio Manager on
page 4.
We thank you for your continued support of Seligman Communications and
Information Fund, and look forward to serving your investment needs in the
future.
By order of the Board of Directors,
/S/William C. Morris
William C. Morris
Chairman
/S/Ronald T. Schroeder
Ronald T. Schroeder
President
August 4, 1995
1
<PAGE>
SUPERIOR
PERFORMANCE
Seligman Communications and Information Fund Class A is the #1 Fund of all
mutual funds for the one, five, and 10 years ended 6/30/95, of all 4,185, 1,560,
and 690 funds, respectively, as measured by Lipper Analytical Services. Lipper's
rankings are based on total returns and do not include sales charges.
SELIGMAN COMMUNICATIONS AND INFORMATION FUND CLASS A
GROWTH OF A $10,000 INVESTMENT: JUNE 30, 1985, THROUGH JUNE 30, 1995
[CHART]
FIGURES USED IN PLOTTING CHART:
- ------------------------------
YEAR ENDED JUNE 30 MARKET VALUE
- ------------------ ------------
7/1/85 $9,521 Initial Net Asset Value
1986 13,589
1987 16,687
1988 15,825
1989 18,276
1990 22,892
1991 21,312
1992 25,667
1993 37,000
1994 42,232
1995 87,780 Total Value at June 30, 1995
<TABLE>
<CAPTION>
12 MONTHS ENDED
JUNE 30 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE VALUE
Net Asset
Value (NAV) $12.76 $15.21 $11.22 $11.93 $11.53 $10.59 $10.74 $14.03 $12.94 $24.63
Gain
Distribution -- $ .35 $ 2.83 $ .85 $ 2.91 $ .12 $ 2.05 $ 1.24 $ 3.10 $ 1.46
NAV with gain
Distribution
taken in shares $12.76 $15.67 $14.86 $17.16 $21.50 $20.01 $24.10 $37.74 $39.66 $82.43
TOTAL VALUE AT
JUNE 30 $13,589 $16,687 $15,825 $18,276 $22,892 $21,312 $25,667 $37,000 $42,232 $87,780
ANNUAL TOTAL
RETURN** 35.89%+ 22.80% (5.17)% 15.49% 25.26% (6.90)% 20.43% 44.15% 14.14% 107.85%
+ Includes the effect of the initial 4.75% maximum sales charge.
</TABLE>
2
<PAGE>
RATING
- ------
*****
- ------
HIGHEST
- -- Morningstar*
* Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 6/30/95. Seligman Communications and Information Fund Class A received
five stars for the three, five, and 10 years. In the broad equity investments
category, of the 1,234, 906, and 459 funds rated for the three, five, and 10
years, respectively, 10% received five stars. The ratings are subject to change
every month. Morningstar ratings are calculated from the Fund's three-, five-
and 10-year average annual returns in excess of 90-day Treasury bill returns
with appropriate fee adjustments and a risk factor that reflects the Fund's
performance below 90-day Treasury bill returns.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL CLASS A CLASS D
TOTAL RETURNS** -------------------- -------------------
NET MAXIMUM
ASSET OFFERING WITHOUT WITH
June 30, 1995 VALUE PRICE CDSL CDSL
-------- ---------- ---------- ------
YTD++ 48.02% 40.99% 47.46% 46.46%
1 Year 107.85 97.91 106.16 105.16
3 year 50.66 48.22 n/a n/a
5 year 30.84 29.58 n/a n/a
10 year 24.87 24.26 n/a n/a
Since Inception 20.24 19.75 57.44 n/a
(Class A: 6/23/83; Class D: 5/3/93)
++Not annualized.
- --------------------------------------------------------------------------------
SELIGMAN COMMUNICATIONS AND INFORMATION FUND CLASS D
GROWTH OF A $10,000 INVESTMENT: MAY 3, 1993, THROUGH JUNE 30, 1995
[CHART]
FIGURES USED IN PLOTTING CHART:
- ------------------------------
PERIOD ENDED MARKET VALUE
- ------------ ------------
5/3/93 $10,000
6/30/93 11,471
9/30/93 13,186
12/31/93 13,489
3/31/94 14,036
6/30/94 12,922
9/30/94 16,740
12/31/94 18,067
3/31/95 20,570
6/30/95 26,641 Total Value at June 30, 1995
12 MONTHS ENDED JUNE 30 1993* 1994 1995
Per Share Value ------- -------- -------
Net Asset Value (NAV) $ 14.04 $ 12.76 $ 24.05
Gain Distribution -- $ 3.10 $ 1.46
NAV with gain distributions
taken in shares $ 14.04 $ 15.82 $ 32.61
Total Value at June 30 $11,471 $ 12,922 $ 26,641
Annual Total Return without CDSL** 14.71% 12.65% 106.16%
*For the period May 3, 1993 (commencement of operations) to June 30, 1993.
** Return figures reflect any change in price per share and assume the
reinvestment of capital gain distributions. Return figures for Class A shares
are calculated without (NAV) and with (MOP) the effect of the initial 4.75%
maximum sales charge. Class A share returns reflect the effect of the 0.25%
Administration, Shareholder Services and Distribution Plan after January 1,
1993, only. The returns for periods of one year or less for Class D shares are
calculated without and with the effect of the 1% contingent deferred sales load
(CDSL), charged only on redemptions made within one year of the date of
purchase. A fund that concentrates its investments in one economic sector may be
subject to greater share price fluctuations than a more diversified fund. Past
performance is not a guarantee of future results. The rate of return will vary
and the principal value of an investment will fluctuate. Shares, if redeemed,
may be worth more or less than their original cost.
3
<PAGE>
SELIGMAN COMMUNICATIONS AND
INFORMATION FUND, INC.
[Picture]
Seligman's Small Company
and Technology Team
A TEAM APPROACH
Seligman Communications and Information Fund is managed by Seligman's Small
Company and Technology Team, headed by Paul Wick. Mr. Wick and his team of
seasoned research professionals visit with the management of hundreds of
technology companies each year to identify those that offer the greatest
potential for growth. Stocks purchased for the Fund are continually monitored by
the Team, and disciplined buy and sell policies are followed.
INTERVIEW WITH PAUL WICK, PORTFOLIO MANAGER
Q. WHEN DID THE INFORMATION TECHNOLOGY INDUSTRY'S BOOM BEGIN, AND WHAT
CONTINUES TO DRIVE IT?
A. While it can be argued that the information technology industry has been in a
strong secular growth mode since its birth in the 1960s, clearly, that growth
rate ratcheted upward beginning in 1991. At that time, large corporations
wholeheartedly embraced the technology of companies such as Novell, Cisco
Systems, Cabletron, and Synoptics to connect personal computers together into
Local Area Networks (LANs). A second massive wave of corporate spending began a
year later in June, 1992, when Microsoft released its Windows 3.1 software. This
high-performance personal computer operating system prompted many companies to
quickly upgrade to the faster Intel 486 microprocessor-based PCs just
then appearing in the market.
Since 1993, the PC revolution has spread to businesses throughout the world and
eventually into the U.S. consumer market. With the advent of Pentium-based PCs
and Microsoft's next-generation operating system, Windows95, taking center stage
this year, yet another wave of information technology spending appears poised to
sweep the globe over the next 18 months.
Q. IN TURN, WHAT STRATEGIES HAVE YOU EMPLOYED TO MAINTAIN THE FUND'S
SPECTACULAR PERFORMANCE?
A. In the past few years, we have concentrated on identifying and investing in
fast-growing companies that demonstrate the potential for positive earnings
surprises -- a strategy that has proved quite rewarding. What we said in the
1994 Annual Report still holds true today -- we believe the secular bull market
for technology that we have experienced thus far in the 1990s will continue
through this decade. The industry is benefiting from both the capital investment
cycle that is driving the current economic expansion, and the information-driven
revolution that has been unfolding. Technology continues to dominate the office,
the factory, the home, and the transportation and entertainment industries; as a
result it will continue to capture a greater share of corporate and consumer
spending over time.
Q. MORE RECENTLY, WHAT HAVE YOU DONE WITH THE PORTFOLIO THIS QUARTER?
A. Global demand in personal computers remains at levels stronger than
anticipated. In the disk drive area in particular, which is about 90% utilized
by personal computers, a shortage of components has led to a general firming of
prices. We made additions to those sectors of the portfolio that are poised to
benefit from this demand. New holdings include Hewlett-Packard and Compaq
Computers in the computer hardware area, and hard disk drive-related issues,
Read-Rite and Komag.
We also added to the communications portion of the portfolio, with notable new
holdings including Stratacom, a maker of wide area networking switches-- an area
that is poised for significant growth, and Nokia, one of the top providers of
cellular phones expected to benefit from the global expansion of wireless
communication services.
Q. LOOKING AHEAD, WHAT'S YOUR OPINION ABOUT THE DIRECTION OF THE INDUSTRY?
A. Overall, fundamentals in technology have rarely looked better. Strength in
key "end markets," such as networking, telecommunications infrastructure, and
personal computers, is driving the overall industry. In addition, there are no
signs of excessive inventories or new semiconductor capacity relative to the
overall size of the industry. Therefore, we remain optimistic about the outlook
for the technology industry in general, and the Fund in particular.
4
<PAGE>
SELIGMAN
COMMUNICATIONS AND INFORMATION FUND, INC.
LARGEST PORTFOLIO CHANGES*
DURING PAST THREE MONTHS
SHARES
---------------------------
HOLDINGS
ADDITIONS INCREASE 6/30/95
- --------------------------------------------------------------------------------
Advanced Micro Devices 1,600,000 2,400,000
Cypress Semiconductor 950,000 1,500,000
Electronics for Imaging 775,000 1,300,000
EMC 1,700,000 4,100,000
Maxim Integrated Products 700,000 700,000
National Semiconductor 1,400,000 1,400,000
Nokia (Class A) (ADRs) 450,000 450,000
Novellus Systems 525,000 650,000
Parametric Technology 700,000 1,250,000
Tektronix 600,000 600,000
HOLDINGS
REDUCTIONS DECREASE 6/30/95
- --------------------------------------------------------------------------------
Autodesk 250,000 --
Exar 600,000 --
FSI International 55,000 395,000+
Genus 455,000 --
LSI Logic 100,000 200,000++
Mattson Technology 410,000 --
McAfee Associates 150,000 --
Microchip Technology 200,000 600,000
Texas Instruments 170,000 --
3COM 175,000 --
* Largest portfolio changes from previous quarter to current quarter are based
on cost of purchases and proceeds from sales of securities.
+ Includes 200,000 shares received as a result of a 2-for-1 stock split.
++ Includes 100,000 shares received as a result of a 2-for-1 stock split.
MAJOR PORTFOLIO HOLDINGS
AT JUNE 30, 1995
SECURITY VALUE
- --------------------------------------------------------------------------------
EMC $99,425,000
Advanced Micro Devices 87,300,000
Electronics for Imaging 68,087,500
Parametric Technology 62,031,250
Xilinx 61,018,750
Cypress Semiconductor 60,750,000
Intel 60,146,875
Lam Research 56,018,375
Altera 52,050,000
Electroglas 48,875,000
5
<PAGE>
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995
SHARES VALUE
------------ ------------
COMMON STOCKS 85.6%
COMMUNICATIONS INFRASTRUCTURE 8.2%
Aspect Telecommunications*
Automated call
distribution equipment 625,000 $ 28,125,000
CIDCO*
Caller identification systems 560,000 17,605,000
Cisco Systems*
Computer network routers 700,000 35,393,750
DSC Communications*
Digital telephone
switching systems 700,000 32,593,750
Lannet Data Communications*
Local area networking
equipment 1,150,000 27,600,000
Motorola
Wireless communications
equipment 230,000 15,438,750
Nokia (Class A) (ADRs)
Wireless communications
equipment 450,000 26,831,250
StrataCom*
Wide-area network switches 350,000 17,018,750
------------
200,606,250
------------
COMPUTER HARDWARE/PERIPHERALS 15.7%
Adaptec*
Small computer systems
interface hardware and
software 1,000,000 36,875,000
Compaq Computers*
Leading global PC
manufacturer 550,000 24,956,250
Dell Computer*
Manufacturer of
IBM-compatible PCs 550,000 33,103,125
Electronics for Imaging*
Color copier servers 1,300,000 68,087,500
EMC*
Enterprise storage devices 4,100,000 99,425,000
Hewlett-Packard
Computers and peripherals 300,000 22,350,000
Komag*
Manufacturer of thin film
magnetic media for hard-
disk drives 500,000 26,062,500
Read-Rite*
Manufacturer of thin film
magnetic read-write heads
for hard-disk drives 600,000 16,012,500
Seagate Technology*
Global hard-disk drive supplier 750,000 29,437,500
Tektronix
Color printers, digital video
storage, and editing systems 600,000 29,550,000
-------------
385,859,375
-------------
COMPUTER SOFTWARE 12.8%
Adobe Systems
desktop publishing software 400,000 23,300,000
BMC Software*
Mainframe database software 150,000 11,550,000
Compuware*
Mainframe system software 700,000 21,612,500
Frame Technology*
Document publishing and
management software 600,000 17,475,000
FTP Software*
Internetworking software 741,000 22,415,250
Hummingbird Communications*
X-Windows networking
software 650,000 18,931,250
Integrated Silicon Systems*
Integrated circuit design
verification software 450,000 16,875,000
MapInfo*
Developer of desktop
mapping software 200,000 7,075,000
Mentor Graphics
Electronic design
automation software 1,200,000 20,850,000
Netmanage*
Internetworking software 1,200,000 20,700,000
Oracle Systems*
Database management
software systems 550,000 21,209,375
Parametric Technology*
Developer of mechanical
design software 1,250,000 62,031,250
Softkey International
Consumer software 425,000 13,493,750
Synopsys*
Integrated circuit
design software 600,000 37,500,000
------------
315,018,375
------------
CONTRACT MANUFACTURING 2.7%
ADFlex Solutions*
Manufacturer of flexible
circuit boards 570,000 13,715,625
Altron*
Manufacturer of
electronic circuit boards 600,000 14,475,000
Merix*
Manufacturer of
electronic circuit boards 630,000 18,900,000
Sanmina*
Manufacturer of
electronic circuit boards 500,000 19,187,500
------------
66,278,125
------------
INFORMATION SERVICES 1.3%
SPS Transaction Services*
Credit card processing services 120,000 4,155,000
SunGard Data Systems*
Computer services aimed
at disaster recovery 540,000 28,350,000
------------
32,505,000
------------
SEMICONDUCTORS 27.1%
Advanced Micro Devices*
Microprocessors and FLASH
memory circuits 2,400,000 87,300,000
Alliance Semiconductor*
Manufacturer of high-per-
formance memory products 200,000 9,750,000
Altera*
Field programmable logic
devices 1,200,000 52,050,000
6
<PAGE>
SHARES VALUE
------------ ------------
Arrow Electronics*
Largest distributor of
semiconductors and other
electronic components 400,000 $ 19,900,000
Atmel*
Manufacturer of memory circuits 700,000 38,806,250
Bell Microproducts*
Distributor of electronic
components 500,000 4,906,250
Cypress Semiconductor*
Manufacturer of memory
circuits 1,500,000 60,750,000
Integrated Device Technology*
Manufacturer of memory
circuits and microprocessors 905,000 41,799,688
Integrated Silicon Solutions*
Manufacturer of high-
performance memory circuits 100,000 5,212,500
Intel
World's leading producer of
microprocessor circuits for PCs 950,000 60,146,875
Lattice Semiconductor
Programmable logic devices 1,100,000 37,881,250
Linear Technology
Analog integrated circuits 600,000 39,450,000
LSI Logic*
Manufacturer of complex
logic circuits 200,000 7,825,000
Maxim Integrated Products*
Linear and mixed-signal
integrated circuits 700,000 35,700,000
Microchip Technology*
Field programmable
microcontrollers 600,000 21,900,000
National Semiconductor*
Producer of analog
and digital semiconductors 1,400,000 38,850,000
Oak Technology*
Audio and CD-Rom
controller circuits 425,000 15,565,625
Tower Semiconductor*
Semiconductor foundry services 900,000 26,268,750
Xilinx*
Field programmable gate arrays 650,000 61,018,750
-------------
665,080,938
-------------
SEMICONDUCTOR CAPITAL EQUIPMENT 17.8%
Applied Materials*
World's largest supplier of
semiconductor fabrication
equipment 550,000 47,575,000
Asyst Technologies*
Miniature clean-room
environment devices for the
manufacture of silicon wafers 430,000 15,963,750
Cognex*
Manufacturer of machine
vision systems 550,000 22,068,750
Credence Systems*
Semiconductor test
equipment 1,100,000 33,000,000
Electro Scientific*
Capacitor production systems
and memory chip repair devices 850,000 28,368,750
Electroglas*
Manufacturer of semi-
conductor prober devices 850,000 48,875,000
PRINCIPAL
AMOUNT
OR SHARES VALUE
----------- -----------
FSI International*
Manufacturer of semiconductor
production equipment 395,000 shs. $ 9,282,500
Fusion Systems*
Ultraviolet curing and
photo-resist strip systems 550,000 18,631,250
KLA Instruments*
Wafer inspection devices 500,000 38,687,500
Lam Research*
Manufacturer of plasma-
etching equipment 877,000 56,018,375
Novellus Systems*
Chemical vapor
deposition equipment 650,000 44,037,500
PRI Automation*
Automated transport and
storage equipment for
silicon wafers 400,000 13,200,000
Silicon Valley Group*
Semiconductor manufacturing
equipment 550,000 19,971,875
Tencor Instruments*
Wafer inspection devices 550,000 22,412,500
Teradyne*
Semiconductor test
equipment 300,000 19,612,500
--------------
437,705,250
--------------
TOTAL COMMON STOCKS
(Cost $1,675,907,236) 2,103,053,313
--------------
SHORT-TERM HOLDINGS 11.9%
ABN-AMRO Bank, Grand Cayman,
Fixed Time Deposit,
6%, 7/5/1995 $ 60,000,000 60,000,000
Bank of Montreal, Grand Cayman,
Fixed Time Deposit,
6 1/16%, 7/5/1995 53,000,000 53,000,000
Canadian Imperial Bank of
Commerce, Grand Cayman,
Fixed Time Deposit,
6.06%, 7/5/1995 60,000,000 60,000,000
Society National Bank, Grand Cayman,
Fixed Time Deposit,
6%, 7/5/1995 58,000,000 58,000,000
Swiss Bank, Grand Cayman,
Fixed Time Deposit,
5 15/16%, 7/5/1995 60,000,000 60,000,000
--------------
TOTAL SHORT-TERM
HOLDINGS (Cost $291,000,000) 291,000,000
---------------
TOTAL INVESTMENTS 97.5%
(Cost $1,966,907,236) 2,394,053,313
OTHER ASSETS
LESS LIABILITIES 2.5% 62,138,266
---------------
NET ASSETS 100.0% $ 2,456,191,579
===============
*Non-income producing security.
Descriptions of companies have not been audited by
Deloitte & Touche LLP.
See notes to financial statements.
7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
ASSETS:
Investments, at value:
Common stocks (cost $1,675,907,236) $ 2,103,053,313
Short-term holdings (cost $291,000,000) 291,000,000 $ 2,394,053,313
----------------
Cash 17,385,059
Receivable for Capital Stock sold 296,365,401
Expenses prepaid to shareholder
service agent 289,659
Receivable for interest and dividends 131,588
Other 30,209
-------------
Total Assets 2,708,255,229
=============
LIABILITIES:
Payable for securities purchased 243,277,655
Payable for Capital Stock repurchased 5,875,369
Payable to shareholder service agent 674,830
Accrued expenses, taxes, and other 2,235,796
--------------
Total Liabilities 252,063,650
--------------
NET ASSETS $2,456,191,579
==============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($.10 par value;
1,000,000,000 shares authorized;
100,293,997 shares outstanding):
Class A $ 7,605,789
Class D 2,423,611
Additional paid-in capital 1,965,108,620
Accumulated net investment loss (6,104,560)
Undistributed net realized gain 60,012,042
Net unrealized appreciation of investments 427,146,077
--------------
NET ASSETS $2,456,191,579
==============
NET ASSET VALUE PER SHARE:
CLASS A ($1,873,300,233 / 76,057,891 SHARES) $24.63
======
CLASS D ($582,891,346 / 24,236,106 SHARES) $24.05
======
- -------------------------------
See notes to financial statements.
STATEMENT OF
OPERATIONS
FOR THE SIX MONTHS ENDED
JUNE 30, 1995
INVESTMENT INCOME:
Interest $ 1,695,164
Dividends 210,750
-------------
Total investment income $ 1,905,914
Expenses:
Management fee 3,416,399
Shareholder account services 2,181,841
Distribution and service fees 1,978,566
Registration 207,737
Shareholder reports and communications 87,179
Auditing and legal fees 34,136
Directors' fees and expenses 20,609
Miscellaneous 9,979
-------------
Total expenses 7,936,446
-------------
Net investment loss (6,030,532)
Net realized and unrealized
gain on investments:
Net realized gain on investments 60,035,411
Net change in unrealized appreciation
of investments 367,148,990
-------------
NET GAIN ON INVESTMENTS 427,184,401
-------------
INCREASE IN NET ASSETS FROM OPERATIONS $ 421,153,869
=============
- --------------------------
See notes to financial statements.
8
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
---------------- ------------------
OPERATIONS:
Net investment loss $ (6,030,532) $ (3,005,208)
Net realized gain on investments 60,035,411 33,339,790
Net change in unrealized appreciation
of investments 367,148,990 37,888,691
------------ -----------
Increase in net assets from operations 421,153,869 68,223,273
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A -- (23,057,467)
Class D -- (7,378,956)
------------ -----------
Decrease in net assets from distributions -- (30,436,423)
------------ -----------
<TABLE>
SHARES
-----------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30,1995 DECEMBER 31, 1994
-------------- ------------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares:
<S> <C> <C> <C> <C>
Class A 60,310,300 12,396,364 1,303,854,528 195,352,500
Class D 19,396,407 5,185,338 403,170,029 79,228,846
Exchanged from associated Funds:
Class A 3,974,152 1,170,239 82,158,397 18,474,544
Class D 689,903 203,970 13,799,062 3,154,851
Shares issued in payment of gain distributions:
Class A -- 1,333,850 -- 21,167,404
Class D -- 446,619 -- 6,950,002
-------------- -------------- -------------- --------------
Total 84,370,762 20,736,380 1,802,982,016 324,328,147
-------------- -------------- -------------- --------------
Cost of shares repurchased:
Class A (3,790,724) (2,961,042) (76,473,385) (45,094,262)
Class D (790,428) (281,622) (16,029,625) (4,346,535)
Exchanged into associated Funds:
Class A (2,922,049) (376,738) (60,082,200) (5,958,943)
Class D (950,677) (251,365) (19,001,129) (3,893,730)
-------------- -------------- -------------- --------------
Total (8,453,878) (3,870,767) (171,586,339) (59,293,470)
-------------- -------------- -------------- --------------
Increase in net assets from capital
share transactions 75,916,884 16,865,613 1,631,395,677 265,034,677
============== ============== -------------- --------------
Increase in net assets 2,052,549,546 302,821,527
NET ASSETS:
Beginning of period 403,642,033 100,820,506
-------------- --------------
End of period (including accumulated net investment loss of
$6,104,560 and $74,028, respectively) $2,456,191,579 $403,642,033
============== ==============
</TABLE>
- ---------------------------------------
See notes to financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Seligman Communications and Information Fund, Inc. (the "Fund") offers two
classes of shares. All shares existing prior to May 3, 1993, were classified as
Class A shares. Class A shares are sold with an initial sales charge of up to
4.75% and a continuing service fee of up to 0.25% on an annual basis. Class D
shares are sold without an initial sales charge but are subject to a
distribution fee of up to 0.75% and a service fee of up to 0.25% on an annual
basis, and a contingent deferred sales load ("CDSL") of 1% imposed on certain
redemptions made within one year of purchase. The two classes of shares
represent interests in the same portfolio of investments, have the same rights
and are generally identical in all respects except that each class bears its
separate distribution and certain class expenses and has exclusive voting rights
with respect to any matter to which a separate vote of any class is required.
2. Significant accounting policies followed, all in conformity with generally
accepted accounting principles, are given below:
a. Investments in common stocks are valued at current market values or, in their
absence, at fair value determined in accordance with procedures approved by the
Board of Directors. Securities traded on national exchanges are valued at last
sales prices or, in their absence and in the case of over-the-counter
securities, a mean of bid and asked prices. Short-term holdings maturing in 60
days or less are valued at amortized cost.
b. There is no provision for federal income or excise tax. The Fund has elected
to be taxed as a regulated investment company and intends to distribute
substantially all taxable net income and net gain realized.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Dividends receivable and payable are recorded on ex-dividend dates.
Interest income is recorded on an accrual basis.
d. All income, expenses (other than class-specific expenses), and realized and
unrealized gains or losses are allocated daily to each class of shares based
upon the relative value of shares of each class. Class-specific expenses, which
include distribution and service fees and any other items that are specifically
attributed to a particular class, are charged directly to such class.
e. The treatment for financial statement purposes of distributions made during
the year from net investment income or net realized gains may differ from their
ultimate treatment for federal income tax purposes. These differences are caused
primarily by differences in the timing of the recognition of certain components
of income, expense, or capital gain for federal income tax purposes. Where such
differences are permanent in nature, they are reclassified in the components of
net assets based on their ultimate characterization for federal income tax
purposes. Any such reclassification will have no effect on net assets, results
of operations, or net asset value per share of the Fund.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended June 30, 1995, amounted to $1,567,556,052
and $262,411,828, respectively.
At June 30, 1995, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes, and the tax
basis gross unrealized appreciation and depreciation of portfolio securities
amounted to $430,208,699 and $3,062,622, respectively.
4. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of
the Fund and provides the necessary personnel and facilities. Compensation of
all officers of the Fund, all directors of the Fund who are employees or
consultants of the Manager, and all personnel of the Fund and the Manager is
paid by the Manager. The Manager receives a fee, calculated daily and payable
monthly, equal to 0.75% per annum of the Fund's average daily net assets.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of Fund shares and an affiliate of the Manager, received
concessions of $5,930,950 from sales of Class A shares, after commissions of
$48,736,945 paid to dealers.
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to Class A shares under which service organizations
can enter into agreements with the Distributor and receive a continuing fee of
up to 0.25% on an annual basis, payable quarterly, of the average daily net
assets of the Class A shares attributable to the particular service
organizations for providing personal services and/or the maintenance of
shareholder accounts. The Distributor charges such fees to the Fund pursuant to
the Plan. For the six months ended June 30, 1995, fees paid aggregated $836,574,
or 0.25% per annum of the average daily net assets of Class A shares.
The Fund has a Plan with respect to Class D shares under which service
organizations can enter into agreements with the Distributor and receive a
continuing fee for providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of the average daily net
assets of the Class D shares for which the organizations are responsible, and
fees for providing other distribution assistance of up to 0.75% on an annual
basis of such average daily net assets. Such fees are paid monthly by the Fund
to the Distributor pursuant to the Plan. For the six months ended June 30, 1995,
fees paid amounted to $1,141,992, or 1% per annum of the average daily net
assets of Class D shares.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions occurring within one year of purchase. For the six months ended June
30, 1995, such charges amounted to $100,346.
For the six months ended June 30, 1995, Seligman Services, Inc., an
affiliate of the Manager, received commissions of $1,501,389 from the sales of
Class A shares of the Fund. Seligman Services, Inc. also received $326,174 from
the Distributor for the sale of Class D shares of the Fund.
Seligman Data Corp., which is owned by certain associated investment
companies, charged the Fund at cost $2,181,795 for shareholder account services.
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
Fees of $16,000 were incurred by the Fund for legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The cost of such fees and interest is included in directors' fees and
10
<PAGE>
expenses and the accumulated balance thereof at June 30, 1995, of $79,300 is
included in other liabilities. Deferred fees and the related accrued interest
are not deductible for federal income tax purposes until such amounts are paid.
5. Class-specific expenses charged to Class A and Class D during the six months
ended June 30, 1995, which are included in the corresponding captions of the
Statement of Operations, were as follows:
CLASS A CLASS D
--------- -----------
Distribution and service fees $836,574 $1,141,992
Registration 104,409 65,421
Shareholder reports and
communications 16,026 3,612
6. On August 2, 1995, pursuant to authorization by the Board of Directors, the
Fund filed Articles Supplementary increasing the number of authorized shares of
Capital Stock to 1,000,000,000.
FINANCIAL HIGHLIGHTS
The Fund's financial highlights are presented below. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per share basis, from the Fund's beginning net asset value to
the ending net asset value so that they can understand what effect the
individual items have on their investment assuming it was held throughout the
period. Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item, as disclosed in the financial statements,
to their equivalent per share amounts.
The total return based on net asset value measures the Fund's performance
assuming investors purchased Fund shares at net asset value as of the beginning
of the period, reinvested dividends and capital gains paid at net asset value,
and then sold their shares at the net asset value per share on the last day of
the period. The total return computations do not reflect any sales charges
investors may incur in purchasing or selling shares of the Fund. The total
returns for periods of less than one year are not annualized.
<TABLE>
CLASS A CLASS D
-------------------------------------------------------- ----------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31 SIX MONTHS YEAR 5/3/93*
ENDED ---------------------------------------------- ENDED ENDED TO
6/30/95** 1994** 1993 1992 1991 1990 6/30/95** 12/31/94** 12/31/93
--------- ------ ----- ----- ----- ----- --------- ---------- -------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
of period $16.64 $13.43 $12.30 $11.57 $8.87 $10.11 $16.31 $13.32 $12.24
----- ----- ----- ----- ----- ----- ----- ----- -----
Net investment loss (0.10) (0.19) (0.14) (0.12) (0.12) (0.08) (0.18) (0.33) (0.05)
Net realized and unrealized
investment gain (loss) 8.09 4.86 4.37 2.09 4.87 (1.04) 7.92 4.78 4.23
----- ----- ----- ----- ----- ----- ----- ----- -----
Increase (decrease) from
investment operations 7.99 4.67 4.23 1.97 4.75 (1.12) 7.74 4.45 4.18
Distributions from
net gain realized -- (1.46) (3.10) (1.24) (2.05) (0.12) -- (1.46) (3.10)
----- ----- ----- ----- ----- ----- ----- ----- -----
Net increase (decrease) in
net asset value 7.99 3.21 1.13 0.73 2.70 (1.24) 7.74 2.99 1.08
----- ----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of period $24.63 $16.64 $13.43 $12.30 $11.57 $8.87 $24.05 $16.31 $13.32
===== ===== ====== ===== ===== ===== ===== ====== ======
TOTAL RETURN BASED
ON NET ASSET VALUE: 48.02% 35.30% 35.13% 17.31% 54.91% (11.07)% 47.46% 33.94% 34.89%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net
assets 1.55%+ 1.65% 1.63% 1.51% 1.69% 1.67% 2.32%+ 2.50% 2.56%+
Net investment loss to average
net assets (1.13)%+ (1.27)% (1.39)% (1.18)% (1.23)% (.83)% (1.90)%+ (2.20)% (2.33)%+
Portfolio turnover 27.87% 104.08% 137.10% 110.42% 107.72% 85.56% 27.87% 104.08% 137.10%++
Net assets, end of period
(000's omitted) $1,873,300 $307,542 $92,987 $57,001 $50,175 $35,292 $582,892 $96,100 $7,833
- -------------------------------------
* Commencement of offering of Class D shares.
** Per share amounts for the six months ended June 30, 1995, and for the year ended December 31, 1994, are calculated based on
average shares outstanding.
+ Annualized.
++ For the year ended December 31, 1993.
See notes to financial statements.
</TABLE>
11
<PAGE>
REPORT OF INDEPENDENT
AUDITORS
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN COMMUNICATIONS AND INFORMATION FUND, INC.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Seligman Communications and Information Fund,
Inc. as of June 30, 1995, the related statements of operations for the six
months then ended and of changes in net assets for the six months then ended and
for the year ended December 31, 1994, and the financial highlights for the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1995 by correspondence with the Fund's custodian and brokers; where replies
were not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of Seligman
Communications and Information Fund, Inc. as of June 30, 1995, the results of
its operations, the changes in its net assets, and the financial highlights for
the respective stated periods, in conformity with generally accepted accounting
principles.
/s/Deloitte & Touche LLP
---------------------
DELOITTE & TOUCHE LLP
New York, New York
August 4, 1995
12
<PAGE>
BOARD OF
DIRECTORS
FRED E. BROWN
DIRECTOR AND CONSULTANT,
J. & W. Seligman & Co. Incorporated
JOHN R. GALVIN 2
DEAN, Fletcher School of Law and
Diplomacy at Tufts University
DIRECTOR, USLIFE Corporation
ALICE S. ILCHMAN 3
PRESIDENT, Sarah Lawrence College
TRUSTEE, Committee for Economic
Development
DIRECTOR, NYNEX
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON 2
CHAIRMAN AND CEO, Kerr-McGee
Corporation
DIRECTOR, Kimberly-Clark Corporation
CHAIRMAN AND DIRECTOR,
Baptist Medical Center
JOHN E. MEROW
PARTNER, Sullivan & Cromwell, Law Firm
BETSY S. MICHEL 2
DIRECTOR OR TRUSTEE,
Various Organizations
WILLIAM C. MORRIS 1
CHAIRMAN
CHAIRMAN OF THE BOARD AND PRESIDENT,
J. & W. Seligman & Co. Incorporated
CHAIRMAN, Carbo Ceramics Inc.
DIRECTOR, Daniel Industries, Inc.
DIRECTOR, Kerr-McGee Corporation
JAMES C. PITNEY 3
PARTNER, Pitney, Hardin, Kipp & Szuch,
Law Firm
DIRECTOR, Public Service Enterprise
Group
JAMES Q. RIORDAN 3
DIRECTOR, The Brooklyn Union
Gas Company
TRUSTEE, Committee for Economic
Development
DIRECTOR, Dow Jones & Co., Inc.
DIRECTOR, Public Broadcasting Service
RONALD T. SCHROEDER 1
MANAGING DIRECTOR,
J. & W. Seligman & Co. Incorporated
ROBERT L. SHAFER 3
VICE PRESIDENT, Pfizer Inc.
DIRECTOR, USLIFE Corporation
JAMES N. WHITSON 2
EXECUTIVE VICE PRESIDENT AND DIRECTOR,
Sammons Enterprises, Inc.
DIRECTOR, C-SPAN
DIRECTOR, Red Man Pipe and Supply
Company
BRIAN T. ZINO 1
MANAGING DIRECTOR,
J. & W. Seligman & Co. Incorporated
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
EXECUTIVE OFFICERS
WILLIAM C. MORRIS
Chairman
RONALD T. SCHROEDER
President
PAUL H. WICK
Vice President
LAWRENCE P. VOGEL
Vice President
THOMAS G. ROSE
Treasurer
FRANK J. NASTA
Secretary
MANAGER
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
GENERAL COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Deloitte & Touche LLP
GENERAL DISTRIBUTOR
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 Shareholder
Services
(800) 455-1777 Retirement Plan
Services
(800) 622-4597 24-Hour
Automated
Telephone Access
Service
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
AN AFFILIATE OF
[LOGO]
J.& W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Communications and Information Fund, Inc., which contains information
about the sales charges, management fee, and other costs. Please read the
prospectus carefully before investing or sending money.
QCI 3b 6/95 Printed on Recycled Paper
