===============================
Seligman
Communications
and
Information
Fund, Inc.
- -------------------------------
A Capital Gain Fund
- -------------------------------
47th Quarterly Report
March 31, 1995
===============================
[LOGO]
<PAGE>
================================================================================
To the Shareholders
- --------------------------------------------------------------------------------
Seligman Communications and Information Fund ended the first quarter of 1995 on
March 31 with the net asset value of Class A shares at $18.98 per share, up
significantly from $16.64 at December 31, 1994, and Class D shares at $18.57 per
share, up from $16.31. Total returns for the three months were 14.06% for Class
A shares and 13.86% for Class D shares, compared to the 9.74% total return of
the Standard & Poor's 500 Composite Stock Price Index. (Total return reflects
change in net asset value and assumes distributions paid within the period, if
any, are reinvested in additional shares. Class A returns do not, however,
reflect the effect of the maximum initial sales charge of 4.75%, and Class D
returns do not reflect the effect of the 1% contingent deferred sales load.) For
both Class A and D shares, net realized gain per share from investment
transactions for the first quarter totaled $0.17. At March 31, net unrealized
gain per share totaled $3.17. Long-term performance results appear on the back
panel of this report.
After seven short-term interest rate increases by the Federal Reserve Board
in 1994, the economy began to show signs of slowing in the first quarter of
1995. For instance, sales of previously owned homes fell to their lowest level
in two years, reflecting the delayed impact of higher interest rates on the
housing market. Retail sales were also sluggish, as consumers have backed off in
the past several months. Nevertheless, consumer confidence still remains
relatively high.
Investors, encouraged by signs of slower economic growth and by hopes of a
less stringent monetary policy, boosted financial markets in the first quarter.
The bond market bounced back from the lows experienced in late 1994, and the
stock market reached new highs, notwithstanding several negative factors
including Mexico's currency crisis, the collapse of Barings (the U.K.'s oldest
and one of its most prestigious banks), and the continual weakening of the U.S.
dollar. However, by quarter end, the plunging dollar had caused both bonds and
stocks to lose some ground.
We are optimistic that the economy will continue to expand at a moderate
pace in 1995, with inflation remaining in check. This, combined with the gradual
strengthening of the economies of U.S. trading partners, is expected to provide
a good foundation for a positive investment environment.
In the past quarter, your Manager reduced the Fund's weighting in the
computer software sector. Profits were taken in Wavefront Technology, Applied
Voice Technology, and Wonderware, while positions in Viewlogic Systems and
Quickturn Design Systems were sold in light of disappointing earnings.
Your Manager shifted proceeds to the semiconductor and semiconductor
capital equipment sectors. On a global basis, fundamentals in both of these
industries are extremely strong, driven by robust demand for integrated circuits
for a broad range of products such as cellular phones, personal computers, and
telecommunications infrastructure equipment. Moreover, valuations appear
reasonable in these stocks and visibility of revenues is at historic levels,
with many companies reporting production backlogs of six to 12 months.
Looking forward, even though historically the second and third quarters
have tended to be difficult for technology, your Manager is quite optimistic
about the outlook for your Fund given the robust fundamentals of the companies
in the portfolio.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Ronald T. Schroeder
Ronald T. Schroeder
President
April 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
Important Telephone Numbers
- ---------------------------
<S> <C> <C> <C> <C> <C>
(800) 221-2450 Shareholder Services (800) 445-1777 Retirement Plan (800) 622-4597 24-Hour Automated
Services Telephone Access Service
</TABLE>
1
<PAGE>
================================================================================
Portfolio of Investments (unaudited) March 31, 1995
- --------------------------------------------------------------------------------
Shares Value
------ -----
Common Stocks--100.8%
Computer Hardware/Peripherals--12.5%
Adaptec* ..................... 325,000 $10,684,375
Dell Computer* ............... 250,000 10,906,250
Electronics for Imaging* ..... 525,000 28,153,125
EMC* ......................... 2,400,000 40,200,000
Seagate Technology* .......... 300,000 8,362,500
-----------
98,306,250
-----------
Computer Software--12.4%
Adobe Systems ................ 175,000 8,684,375
Autodesk ..................... 250,000 10,562,500
Compuware* ................... 380,000 13,965,000
Epic Design Technology* ...... 100,000 2,637,500
Hummingbird Communications* .. 487,500 10,115,625
Integrated Silicon Systems* .. 235,000 6,785,625
MapInfo* ..................... 200,000 6,075,000
McAfee Associates* ........... 150,000 4,293,750
Netmanage* ................... 100,000 4,175,000
Parametric Technology* ....... 550,000 21,931,250
Synopsys* .................... 170,000 8,117,500
-----------
97,343,125
-----------
Contract Manufacturing--3.3%
Altron* ...................... 460,000 6,986,250
Merix* ....................... 350,000 8,793,750
Sanmina* ..................... 300,000 9,712,500
-----------
25,492,500
-----------
Information Services--2.6%
SPS Transaction Services* .... 180,000 6,300,000
SunGard Data Systems* ........ 300,000 13,818,750
-----------
20,118,750
-----------
Networking--7.8%
Aspect Telecommunications* ... 350,000 12,775,000
Cisco Systems* ............... 380,000 14,463,750
DSC Communications* .......... 400,000 13,025,000
Lannet Data Communications* .. 600,000 11,025,000
3COM* ........................ 175,000 9,887,500
-----------
61,176,250
-----------
Semiconductors--34.2%
Advanced Micro Devices* ...... 800,000 27,100,000
Altera* ...................... 420,000 23,415,000
Arrow Electronics* ........... 200,000 8,425,000
Atmel* ....................... 450,000 17,409,375
Bell Microproducts* .......... 400,000 3,900,000
Cypress Semiconductor* ....... 550,000 15,331,250
Shares or
Prin. Amt.
----------
Exar* 600,000 12,825,000
Integrated Device Technology* 300,000 11,118,750
Intel ........................ 260,000 22,051,250
Lattice Semiconductor ........ 500,000 12,281,250
Linear Technology ............ 240,000 13,380,000
LSI Logic* ................... 200,000 10,500,000
Microchip Technology* ........ 800,000 22,500,000
Motorola ..................... 270,000 14,748,750
Texas Instruments ............ 170,000 15,045,000
Tower Semiconductor* ......... 500,000 10,000,000
Xilinx* ...................... 410,000 27,726,250
-----------
267,756,875
-----------
Semiconductor Capital Equipment--28.0%
Applied Materials* ........... 370,000 20,373,125
Asyst Technologies* .......... 230,000 8,395,000
Cognex* ...................... 400,000 11,400,000
Credence Systems* ............ 650,000 20,475,000
Electroglas* ................. 400,000 17,400,000
Electro Scientific* .......... 600,000 14,325,000
FSI International* ........... 250,000 10,156,250
Fusion Systems* .............. 500,000 14,875,000
Genus* ....................... 455,000 4,749,063
KLA Instruments* ............. 200,000 12,600,000
Lam Research* ................ 680,000 30,515,000
Mattson Technology* .......... 410,000 9,430,000
Novellus Systems* ............ 125,000 7,765,625
PRI Automation* .............. 400,000 8,800,000
Silicon Valley Group* ........ 330,000 9,322,500
Tencor Instruments* .......... 175,000 10,346,875
Teradyne* .................... 200,000 8,300,000
-----------
219,228,438
-----------
Total Common Stocks
(Cost $657,883,581) ................... 789,422,188
-----------
Short-Term Holdings--7.2%
Canadian Imperial Bank of
Commerce, Grand Cayman,
Fixed Time Deposit,
6 5/16%, 4/3/1995 ........ $15,910,000 15,910,000
National Westminster, Nassau,
Fixed Time Deposit,
6 1/8%, 4/3/1995 ......... 18,000,000 18,000,000
Republic National Bank of
New York, Grand Cayman,
Fixed Time Deposit,
5 15/16%, 4/5/1995 ....... 22,970,000 22,970,000
-----------
Total Short-Term Holdings
(Cost $56,880,000) ................... 56,880,000
-----------
2
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
Value
-----
Total Investments--108.0%
(Cost $714,763,581) .................. $ 846,302,188
Other Assets Less
Liabilities--(8.0)% .................. (62,910,558)
-----------
Net Assets--100.0% ...................... $783,391,630
============
- ----------
* Non-income producing security.
Note: Investments in 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.
Largest Portfolio Changes+
During Past Three Months
Shares
---------------------
Holdings
Additions Increase 3/31/95
- --------- ------- --------
Altera ............................ 220,000 420,000
Aspect Telecommunications ......... 350,000 350,000
Atmel ............................. 450,000 450,000
EMC ............................... 1,550,000 2,400,000
Intel ............................. 260,000 260,000
Lam Research ...................... 315,000 680,000
Lannet Data Communications ........ 600,000 600,000
Microchip Technology .............. 600,000 800,000
Texas Instruments ................. 170,000 170,000
Xilinx ............................ 240,000 410,000
Holdings
Reductions Decrease 3/31/95
- --------- ------- --------
Alliance Semiconductor ............ 135,000++ --
Applied Voice Technology .......... 100,000 --
Aspen Technology .................. 200,000 --
Electronics for Imaging ........... 75,000 525,000
Quickturn Design Systems .......... 450,000 --
Standard Microsystems ............. 210,000 --
Wavefront Technology .............. 170,000 --
Western Digital ................... 600,000 --
Viewlogic Systems ................. 360,000 --
Wonderware ........................ 100,000 --
- -----------
+ Largest portfolio changes from previous quarter to current quarter are based
on cost of purchases and proceeds from sales of securities.
++ Includes 35,000 shares received as a result of a 3-for-2 stock split.
Major Portfolio Holdings
at March 31, 1995
Security Value
- -------- -----------
EMC ............................... $40,200,000
Lam Research ...................... 30,515,000
Electronics for Imaging ........... 28,153,125
Xilinx ............................ 27,726,250
Advanced Micro Devices ............ 27,100,000
Altera ............................ 23,415,000
Microchip Technology .............. 22,500,000
Intel ............................. 22,051,250
Parametric Technology ............. 21,931,250
Credence Systems .................. 20,475,000
3
<PAGE>
- --------------------------------------------------------------------------------
Long-Term Investment Results
Average Annual Total Returns
March 31, 1995
Class A*
One Five Ten
Year Years Years
------ ------ -------
With Sales Charge 40.80% 24.94% 21.97%
Without Sales Charge 47.83 26.16 22.55
Class D**
Since
One Inception
Year 5/3/93
----- ---------
With CDSL 45.55% n/a
Without CDSL 46.55 45.88%
*The maximum initial sales charge for Class Ashares is 4.75%. No adjustment
was made to performance for periods prior to January 1, 1993, the
commencement date for the annual Administration, Shareholder Services and
Distribution Plan fee of up to 0.25% of average daily net assets of Class A
shares.
** The returns for the one-year period for Class D shares are shown with and
without the effect of the 1% contingent deferred sales load ("CDSL")imposed
on certain shares redeemed within one year of purchase.
--------------------------------------
These rates of return reflect changes in prices and assume that all
distributions within the period are reinvested in additional shares. The rates
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. Past
performance is not indicative of future investment results. A fund that
concentrates its investments in one economic sector may be subject to greater
share price fluctuations than a more diversified fund.
- --------------------------------------------------------------------------------
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.
EQCI3a 3/95
