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THIRD QUARTER REPORT
SELIGMAN
COMMUNICATIONS
AND INFORMATION
FUND, INC.
SEPTEMBER 30, 1995
[logo]
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A Capital Gain Fund
Established in 1983
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.
EQCI3c 9/95
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TO THE SHAREHOLDERS
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We are pleased to update you on Seligman Communications and Information Fund
with this Third Quarter Report. We are delighted to report that your Fund|s
outstanding performance continued through the third quarter of 1995,
significantly outperforming all the major indices. For your convenience, your
Fund|s specific investment performance, compared to the Standard & Poor|s 500
Composite Stock Price Index, has been consolidated into a table which follows
the portfolio. In addition, as of September 30 your Fund (Class A shares) was
the number five fund of all mutual funds for the one year ended September 30,
1995, of the 7,046 funds measured by Lipper Analytical Services, Inc. and was
the number one fund of all mutual funds for the five and 10 years ended
September 30, 1995, of the 2,700 and 1,173 funds, respectively, as measured by
Lipper.
Your Fund's gain information is as follows: for Class A and D shares, net
realized gain per share from investment transactions for the first nine months
totaled $1.24. At September 30, net unrealized gain per share totaled $6.25. The
realized gain distribution for 1995 will be declared on December 21 and will be
paid before year end.
Third quarter reports and statistics suggest that the U.S. economy is
maintaining its pattern of slow growth; for example, factory orders for consumer
goods rose at a tepid rate, as retailers continued to hold down inventories. In
addition, inflation remained benign and low interest rates prevailed, supported
by growing prospects for a deficit reduction plan that will curb government
spending in areas previously off limits = such as entitlements. In the past, an
environment marked by such modest but sustained economic growth and subdued
inflation has proven very positive for financial markets.
Equity markets continued to be supported by increases = albeit at a
decelerated rate = in corporate earnings. Technology issues in general had a
very favorable quarter and a terrific nine months, and, despite a decline in
early October, the outlook for this sector remains positive. Stock valuations of
technology issues are very attractive based on estimated 1996 earnings, and
should continue to benefit from stable-to-lower interest rates and continuing
corporate restructuring.
In the third quarter, your Manager increased the communications
infrastructure portion of the portfolio. Data networking stocks, in particular,
appear to be quite attractive. This area continues to benefit from the buildout
of corporate networks from main offices to remote offices. The exciting growth
in this area is not limited to the U.S.; the growth rate for data networking
overseas has begun to take off, paralleling the U.S. market demand seen in the
early 1990s. This trend bodes well for your Fund as it significantly expands the
potential for growth among the types of companies in which it invests.
Your Manager continues to maintain a strong position in the semiconductors
and semiconductor capital equipment sectors due to the sustainable demand for
electronic components in areas such as telecommunications infrastructure,
computers, automobiles, and consumer and industrial electronics.
For information about your Fund, or your investment in its shares, please
write, or call the toll-free telephone numbers listed below. By order of the
Board of Directors,
/S/ William C. Morris
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William C. Morris
Chairman
/s/ Brian T. Zino
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Brian T. Zino
President
October 27, 1995
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Important Telephone Numbers
SHAREHOLDER
SERVICES
(800) 221-2450
RETIREMENT PLAN
SERVICES
(800) 445-1777
24-HOUR AUTOMATED
TELEPHONE ACCESS SERVICE
(800) 622-4597
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PORTFOLIO OF INVESTMENTS (unaudited)
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SHARES VALUE
------ -----
COMMON STOCKS 96.9%
BROADCASTING 1.4%
Evergreen Media* ..................... 400,000 $ 11,300,000
Viacom (Class B)* .................... 600,000 29,850,000
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41,150,000
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COMMUNICATIONS INFRASTRUCTURE 12.3%
Aspect Telecommunications* ........... 1,600,000 43,200,000
CIDCO* ............................... 1,100,000 38,637,500
Cisco Systems* ....................... 900,000 62,156,250
DSC Communications* .................. 800,000 47,450,000
Lannet Data Communications* .......... 1,200,000 31,200,000
Motorola ............................. 250,000 19,093,750
Nokia (Class A) (ADRs) ............... 450,000 31,387,500
StrataCom* ........................... 600,000 33,037,500
3COM* ................................ 1,400,000 63,787,500
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369,950,000
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COMPUTER HARDWARE/PERIPHERALS 15.9%
Adaptec* ............................. 900,000 37,181,250
Compaq Computers* .................... 600,000 29,025,000
Dell Computer* ....................... 500,000 42,468,750
Electronics for Imaging* ............. 1,200,000 85,950,000
EMC* ................................. 4,000,000 72,500,000
Hewlett-Packard ...................... 400,000 33,350,000
Komag* ............................... 450,000 29,334,375
Read-Rite* ........................... 800,000 29,300,000
Seagate Technology* .................. 1,050,000 44,231,250
Tektronix ............................ 900,000 53,100,000
Vicor* ............................... 400,000 9,650,000
Xerox* ............................... 100,000 13,437,500
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479,528,125
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COMPUTER SOFTWARE 12.0%
Adobe Systems ........................ 179,000 9,296,812
Frame Technology* .................... 800,000 21,550,000
FTP Software* ........................ 1,300,000 36,156,250
Hummingbird Communications* .......... 850,000 31,609,375
Mentor Graphics ...................... 1,700,000 35,275,000
Netmanage* ........................... 2,000,000 47,375,000
Oracle Systems* ...................... 650,000 24,903,125
Parametric Technology* ............... 1,650,000 101,887,500
Synopsys* ............................ 1,700,000 52,700,000
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360,753,062
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CONTRACT MANUFACTURING 2.4%
ADFlex Solutions ..................... 700,000 15,837,500
Altron* .............................. 450,000 14,118,750
Merix * .............................. 700,000 22,575,000
Sanmina* ............................. 400,000 19,000,000
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71,531,250
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INFORMATION SERVICES 0.9%
SunGard Data Systems* ................ 955,000 27,695,000
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SEMICONDUCTORS 32.4%
Alliance Semiconductor* .............. 900,000 35,887,500
Altera* .............................. 1,600,000 100,000,000
Arrow Electronics* ................... 400,000 21,750,000
Atmel* ............................... 1,500,000 50,718,750
Cypress Semiconductor* ............... 2,000,000 77,250,000
Integrated Device Technology* ........ 2,900,000 72,318,750
Intel ................................ 1,400,000 84,262,500
Lattice Semiconductor ................ 1,050,000 42,525,000
Linear Technology .................... 1,660,000 68,993,750
LSI Logic* ........................... 800,000 46,200,000
Maxim Integrated Products* ........... 700,000 52,062,500
Microchip Technology* ................ 800,000 30,350,000
Micron Technology* ................... 550,000 43,725,000
National Semiconductor* .............. 1,600,000 44,200,000
Oak Technology ....................... 650,000 27,259,375
Tower Semiconductor* ................. 1,000,000 32,625,000
VLSI Technology* ..................... 700,000 23,931,250
Xilinx* .............................. 2,400,000 115,650,000
Zilog* ............................... 100,000 4,150,000
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973,859,375
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SEMICONDUCTOR CAPITAL EQUIPMENT 19.6%
Applied Materials* ................... 550,000 56,375,000
Asyst Technologies* .................. 500,000 22,937,500
Cognex* .............................. 500,000 23,937,500
Credence Systems* .................... 1,512,500 54,639,063
Electro Scientific* .................. 1,000,000 35,125,000
Electroglas* ......................... 900,000 61,087,500
Fusion Systems* ...................... 550,000 15,950,000
KLA Instruments* ..................... 500,000 40,250,000
Lam Research* ........................ 1,150,000 68,568,750
Novellus Systems* .................... 900,000 62,887,500
PRI Automation* ...................... 600,000 24,300,000
Silicon Valley Group* ................ 600,000 23,137,500
Tencor Instruments* .................. 1,250,000 55,156,250
Teradyne* ............................ 800,000 28,800,000
Ultratech Stepper* ................... 150,000 6,318,750
Varian Associates .................... 200,000 10,600,000
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590,070,313
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TOTAL COMMON STOCKS
(Cost $2,234,591,163) ........ 2,914,537,125
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September 30, 1995
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SHARES VALUE
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CONVERTIBLE PREFERRED
STOCKS 0.5% (Cost $17,000,000)
PUBLISHING 0.5%
Houghton Mifflin 6% 250,000 $ 16,250,000
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SHORT-TERM HOLDINGS 2.8%
(Cost $84,770,000) 84,770,000
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TOTAL INVESTMENTS 100.2%
(Cost $2,336,361,163) 3,015,557,125
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OTHER ASSETS LESS
LIABILITIES (0.2)% (6,615,307)
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NET ASSETS 100.0% $3,008,941,818
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* Non-income producing security.
Note: Investments in stocks are valued at current market values or, in their
absence, at fair values 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. Major Portfolio Holdings at September
30, 1995
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MAJOR PORTFOLIO HOLDINGS
at September 30, 1995
Security Value
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Xilinx ............................. $115,650,000
Parametric Technology .............. 101,887,500
Altera ............................. 100,000,000
Electronics for Imaging ............ 85,950,000
Intel .............................. 84,262,500
Cypress Semiconductor .............. 77,250,000
EMC ................................ 72,500,000
Integrated Device Technology ....... 72,318,750
Linear Technology .................. 68,993,750
Lam Research ....................... 68,568,750
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SELIGMAN COMMUNICATIONS AND INFORMATION FUND
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INVESTMENT RESULTS
TOTAL RETURNS*
AVERAGE ANNUAL
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CLASS D
THREE NINE ONE FIVE TEN SINCE
MONTHS MONTHS YEAR YEARS YEARS INCEPTIONa
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CLASS A
With Sales Charge 7.81% 59.59% 72.69% 43.10% 26.33% n/a
Without Sales Charge 13.20 67.55 81.33 44.51 26.95 n/a
CLASS D
With CDSL 12.01 65.65 78.86 n/a n/a n/a
Without CDSL 13.01 66.65 79.86 n/a n/a 57.96%
S&P 500** 7.95 29.77 29.75 17.23 15.98 15.63aa
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NET ASSET VALUE PER SHARE
SEPTEMBER 30, 1995 JUNE 30, 1995 DECEMBER 31, 1994
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CLASS A $27.88 $24.63 $16.64
CLASS D 27.18 24.05 16.31
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* The returns for Class A shares are shown with and without the maximum initial
sales charge of 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 periods of one
year or less 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.
** The S&P 500 is an unmanaged index and assumes reinvestment of estimated
dividends and does not reflect fees and expenses. Investors may not invest
directly in an index. a May 3, 1993.
aa From April 30, 1993.
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These rates of return reflect changes in price 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.
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LARGEST PORTFOLIO CHANGES|
During Past Three Months
SHARES
-----------------------
HOLDINGS
ADDITIONS INCREASE 9/30/95
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Alliance Semiconductor ....................... 550,000 900,000a
Altera ....................................... 400,000 1,600,000
Cypress Semiconductor ........................ 500,000 2,000,000
Integrated Device Technology ................. 545,000 2,900,000aa
Intel ........................................ 450,000 1,400,000
LSI Logic .................................... 600,000 800,000
Micron Technology ............................ 550,000 550,000
Tencor Instruments ........................... 700,000 1,250,000
3COM ......................................... 700,000 1,400,000(alpha)
Viacom (Class B) ............................. 600,000 600,000
HOLDINGS
REDUCTIONS DECREASE 9/30/95
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Adobe Systems 221,000 179,000
Advanced Micro Devices 2,400,000 --
Altron 150,000 450,000
BMC Software 150,000 --
Compuware 700,000 --
Electronics for Imaging 100,000 1,200,000
FSI International 395,000 --
Integrated Silicon Solutions 100,000 --
Integrated Silicon Systems 780,000n --
Softkey International 425,000 --
| Largest portfolio changes from the previous quarter to the current quarter
are based on cost of purchases and proceeds from sales of securities.
a Includes 150,000 shares received as a result of a 3-for-2 stock split.
aa Includes 1,450,000 shares received as a result of a 2-for-1 stock split.
(alpha) Includes 700,000 shares received as a result of a 2-for-1 stock split.
n Includes 330,000 shares received as a result of a 2-for-1 stock split.
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