-----------------------------------------
S E L I G M A N
[GRAPHIC OMITTED]
SELIGMAN
COMMUNICATIONS
AND INFORMATION
FUND, INC.
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Seeking Capital Gain by Investing in Companies Operating in All Aspects of
Communications, Information, and Related Industries
DECEMBER 31, 1997 o ANNUAL REPORT
<PAGE>
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Over the Long Term -- J. & W. Seligman & Co. Incorporated
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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 followed 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 50 investment 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 westward path of the railroads and the 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, 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.
In 1930, Seligman began managing its first mutual fund, Broad Street Investing
Co., now known as Seligman Common Stock Fund.
SELIGMAN COMMUNICATIONS AND INFORMATION FUND
Seligman Communications and Information Fund, established June 23, 1983,
seeks capital gain 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 pursue their financial goals.
[PHOTO OMITTED]
James, Jesse, and Joseph Seligman
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TABLE OF CONTENTS
To the Shareholders ....................................................... 1
Interview With Your Portfolio Manager ..................................... 2
Tax Status of 1997 Distribution ........................................... 5
Performance Overview ...................................................... 6
Portfolio Overview ........................................................ 8
Portfolio of Investments .................................................. 10
Statement of Assets and Liabilities ....................................... 15
Statement of Operations ................................................... 16
Statements of Changes in Net Assets ....................................... 17
Notes to Financial Statements ............................................. 18
Financial Highlights ...................................................... 21
Report of Independent Auditors ............................................ 23
Board of Directors and Executive Officers ................................. 24
Glossary of Financial Terms ............................................... 25
"Your Fund's broad charter allows it to participate in all aspects of the
information explosion. Portfolio policy focuses 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
"Today, we are on the cutting edge of a new world of technology and have entered
into an incredible information revolution that has far-reaching potential. The
explosive growth of personal computers in the home, advances in microprocessor
circuitry, the Internet and its proliferating services, and the expansion of
networking capabilities are among the exciting developments offering new
investment opportunities."
-- William C. Morris,
Fund Chairman
1989-Present
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To the Shareholders
Nineteen ninety-seven was a challenging but rewarding year for Seligman
Communications and Information Fund. The Fund posted a 22.95% total return based
on the net asset value of Class A shares. This return significantly outperformed
the 10.65% average total return of its peers, as measured by the Lipper Science
& Technology Funds Average.
This was the seventh year of economic expansion in the US, with real domestic
growth of 3.8%. Consumer price inflation slowed to under 2%, interest rates
moved steadily lower, productivity rose, and unemployment levels reached 27-year
lows. Meanwhile, the federal budget deficit virtually disappeared and corporate
profits posted a third consecutive year of strong gains. Despite year-end
problems in Asia, the domestic business environment was favorable.
During 1997, the equity markets, as measured by the Standard & Poor's 500
Composite Stock Price Index, had a total return of 33.36%. However, much of this
gain occurred in the first seven months. Technology stocks, in particular, were
subject to wide fluctuations throughout the year, with selloffs in the sector
from February to May, and again in November and December. Within the technology
sector, the largest companies were generally the strongest performers due to
their more reliable earnings profiles. However, not all large-capitalization
technology stocks had a successful year, and earnings disappointments triggered
severe price corrections in select stocks.
The last quarter of the year was the most difficult, as negative earnings
announcements from bellwether stocks such as Oracle Systems and fears regarding
the impact of the Asian crisis on the sector led to a pronounced selloff of
technology stocks. Semiconductor companies, which had performed strongly until
October, were particularly affected by the anticipated reduction in Asian demand
for technology. Further, the growing popularity of low-cost personal computers
(PCs) caused concern regarding the future profitability of PC manufacturers.
Nevertheless, technology stocks ended the year with a rally, as investors took
advantage of the buying opportunities found in the sector.
Although technology stocks were seriously impacted in the aftermath of the
October 27, 1997, stock market correction, we believe there remains a great deal
of opportunity in the sector. However, it is possible that certain areas within
the technology universe will be adversely impacted by the Asian crisis. The
Fund's new investments will, therefore, be more focused on domestically-oriented
stocks that are not as dependent on the Asian markets for growth.
The outlook for US corporate profits in 1998 is uncertain due to expectations
of more modest economic growth and the unforeseeable effect of the Asian crisis
on corporate profitability and the economy. There is a risk of temporary price
deflation linked to the Asian crisis, as those economies seek to export their
way out of trouble. Barring problems caused by the tightness of the labor
market, we expect a continuation of the current low-inflation and
low-interest-rate environment.
We believe that difficult market environments will highlight the strengths of
active management. Volatility can also serve as a reminder of the importance of
a long-term investment strategy, putting the short-term fluctuations of the
markets and technology stocks in perspective. While the degree of the day-to-day
changes that affect technology stocks can be intimidating, it serves to remember
that there is a risk/reward tradeoff. The Fund, while vulnerable to the market's
temporary gyrations, has historically offered superior returns over the long
term. Finally, creating and maintaining a personal investment portfolio that is
diversified across asset classes and industry groups can limit the impact of
shifts in the market environment.
Thank you for your continued interest in Seligman Communications and
Information Fund. We look forward to serving your investment needs in the many
years to come. A discussion with your Portfolio Manager, the Fund's portfolio of
investments, and financial statements, follow this letter. Additional
information on the Fund's investment results appears starting on page 6.
By order of the Board of Directors,
/s/ William Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
January 30, 1998
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1
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Interview With Your Portfolio Manager, Paul H. Wick
Q. How did Seligman Communications and Information Fund perform in 1997?
A. Seligman Communications and Information Fund's total return based on the net
asset value of Class A shares was 22.95% for the year. While the Fund vastly
outperformed the 10.65% average total return of its peers, as measured by the
Lipper Science & Technology Funds Average, it lagged the 33.36% total return
of the Standard & Poor's 500 Composite Stock Price Index. After an auspicious
start to the second half of the year, technology stocks gave up significant
ground late in the fourth quarter as the Asian financial crisis intensified.
Q. Which of the Fund's industries performed best in 1997?
A. The clear standout in 1997 was the radio broadcasting industry, which
benefited from a strong advertising market and continued consolidation.
Also posting favorable results was the data storage market, where Fund
holdings benefited from insatiable storage demand, stable pricing, and gains
in market share.
Q. Which of the Fund's industries impaired results in 1997?
A. The weakest area in the portfolio was the networking industry. Numerous
issues impacted this group in 1997:
o The 56 Kilobit (56K) modem standard was delayed into 1998, hurting overall
modem sales. The Fund's investments in 3Com and Diamond Multimedia were
therefore sold;
o Rapid advances in semiconductor technology reduced product prices,
pressuring the revenue growth of many networking equipment vendors; and
o The networking industry's growth slowed from 30% two years ago to 15% in
1997, reflecting maturing markets in the US and Europe, Asian weakness,
and declining sales prices.
Q. What is your outlook on semiconductor capital equipment stocks?
A. The 1998 growth projections for worldwide semiconductor capital equipment
spending fell from as high as 20% to zero or below in less than three months.
In that period, the prices of chip equipment stocks fell as much as 50%.
Nevertheless, we retained our positions for a number of reasons. First,
most of the portfolio's investments in the sector are gaining market share,
particularly against Japanese competitors. As a result, we expect the
equipment companies held in the Fund to grow revenues by as much as 20% in
1998 despite Asian spending cutbacks. Second, profit margins for the leading
companies have been rising over time, reflecting increased competitive
barriers for newcomers and fewer industry players. Finally, valuations are
compelling, with most companies selling at low multiples of their earnings,
book values, and sales.
Q. What is the state of the memory chip market and how will it affect the Fund?
A. In 1997, most memory chips, particularly DRAM circuits, experienced a second
consecutive year of significant price declines. This drop played a major role
in making personal
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[PHOTO OMITTED]
Seligman Technology Team: (standing) Paul Krieger, Shanean Austin
(Administrative Assistant), Patrick Renda, Lawrence Rosso, Storm Boswick,
Carolyn Rogers, (seated) Paul Wick (Portfolio Manager)
A TEAM APPROACH
Seligman Communications and Information Fund is managed by the Seligman
Technology Team, headed by Paul H. Wick. Mr. Wick and his team of seasoned
research professionals visit with the managements 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.
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2
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Interview With Your Portfolio Manager, Paul H. Wick
computers (PCs) more affordable. For example, a PC buyer paid $400 for 16
megabytes of memory in late 1995; today, 32 megabytes of DRAM cost
approximately $60 in a typical PC. The DRAM industry has suffered from
overcapacity for some time, and the recent Asian crisis magnified the problem
as South Korean chip companies liquidated inventories to obtain US dollars.
Additionally, within the past few months, the major South Korean DRAM
suppliers -- Samsung, Hyundai, and LG Semicon -- all announced large cuts to
their capital spending plans for 1998. We expect the leading Japanese DRAM
companies to do the same. These actions will likely hinder the near-term
results of the Fund's holdings in the semiconductor capital equipment
industry. However, these spending cuts should help rehabilitate the global
chip industry and should prove an overall positive for the industry's
long-term health.
Q. How will the sub-$1,000 PC affect the technology sector?
A. The term "sub-$1,000 PC" usually refers to a PC without a monitor or
speakers; when these and other features are added, prices typically rise to
$1,100-$1,400. Nevertheless, there is clearly a trend toward lower-priced PCs
for several reasons. First, virtually all PC components have rapidly declined
in price, particularly DRAM chips, disk drives, microprocessors, and
multimedia circuits. Second, greater market share concentration in the PC
industry is an important factor, as larger PC companies like Compaq Computer
and Dell Computer are translating discounts on high-volume component orders
into lower prices for consumers. Finally, technology advances in hardware
have recently overtaken the functional requirements of most software
programs. As a result, consumers have become increasingly aware that they no
longer need to invest in high-end PCs to have their computing needs met.
While the trend towards cheaper PCs benefits consumers, it has created
difficulties in the technology industry. Cheaper PCs generally are configured
with smaller disk drives, less memory, and low-grade audio chips and
microprocessors. This trend hurts component suppliers. In addition, PC
resellers and retailers, and the PC companies themselves, garner far less
revenue and profit per unit sold.
Q. What are some of the possible ramifications of the Asian financial crisis on
US technology stocks?
A. The dramatic fall in value of Asian currencies relative to the US dollar,
Japanese yen, and other "hard currencies" is likely to result in weakened
global growth. In general, Asian demand for imported technology will be
significantly reduced. This situation is exacerbated by the significant US
dollar-denominated borrowings of many Asian companies, and the liquidity
problems impacting the Asian banking sector. Additionally, the Asian crisis
has negative implications for an already weak Japanese economy. Asia has
historically been a critical export market for Japan, and Japanese banks have
numerous questionable loans in the affected Asian countries.
The sum of these problems is that US technology companies will have fewer
export opportunities, and may have difficulty competing with Japanese
products, which benefit from the weakened yen.
Q. Which areas within the technology sector appear strongest heading into 1998?
A. The Fund has increased its positions in the rapidly-growing industries most
likely to be unscathed by the Asian crisis:
o Data storage companies are capitalizing on companies' increasing demands
for fast access to "mission-critical" data like inventories and customer
orders;
o Entertainment software companies are benefiting from the continued growth
in the installed base of consumer PCs and videogame machines like the Sony
Playstation;
o Information services and computer software companies have seen accelerated
growth from their products addressing the "Year 2000" problem;
o Mechanical and integrated circuit design software firms have all benefited
from consolidation in their industries; and
o Radio broadcasting companies continue to take advertising share from other
media sectors.
Q. What are some of the necessary catalysts to reaccelerate the broad technology
markets?
A. Obviously, currency stabilization and continued economic growth in Asia would
be helpful to the world's technology industries. However, we believe new
products are likely to play a major role in the next 12 months:
o Intel's new 440BX core logic chipset, due in April, significantly expands
the performance of Pentium-II-based PCs, accelerating the industry's
transition to the Pentium-II and perhaps reducing the rate of PC price
declines;
o The shift in industry standards to 56K modems will soon be final,
reversing the 1997 stall in the modem upgrade market;
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3
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Interview With Your Portfolio Manager, Paul H. Wick
o Cable and Asynchronous Digital Subscriber Line (ADSL) modems will commence
widespread deployment in 1998, offering Internet users even faster access
to on-line information;
o Internet appliances, such as WebTV and Internet telephones, could achieve
significant sales volume in 1998; and
o DVD players and high-definition televisions will likely become mass-market
consumer items over the next two years.
Q. What is your overall outlook for the Fund?
A. As we go to press, the trend in earnings-estimate revisions for technology
companies has been mostly downward in the past four months. At the same time,
there is considerable uncertainty, given the turbulence in Asia. Undoubtedly,
1998 will be challenging for technology investors.
Nevertheless, we remain optimistic regarding the Fund's long-term
appreciation potential and anticipate a more positive environment in the
second half of 1998. Our reasoning is as follows:
o The prices of US technology stocks have already been discounted for a
great deal of bad news, as reflected in their low absolute and relative
valuations;
o Semiconductor capital spending cutbacks in South Korea and Japan will help
restore the global chip industry's long-term health;
o New operating systems from Microsoft and chipsets from Intel will move the
PC industry back toward high-performance machines with more memory and
faster processors;
o Dramatic improvements in communications bandwidth, likely to be seen in
late 1998 and early 1999, should spur accelerated development of the
Internet and renewed growth for technology in general; and
o By mid-1998, investors should include 1999 earnings expectations in their
valuations of technology companies.
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4
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Federal Tax Status of 1997 Gain Distribution for Taxable Accounts
The distribution of $5.937 per share, consisting of $3.002 from net long-term
gain and $2.935 from net short-term gain, realized on investments from November
1996 to October 1997, was paid on November 21, 1997, to Class A, B, and D
shareholders. The federal Taxpayer Relief Act of 1997 modified the
classification of long-term capital gains to include a "28% Rate Gain" category.
Please note that 51% of the November 1997 long-term capital gain distribution is
categorized as "28% Rate Gain."
The long-term gain distribution is designated a "capital gain dividend" for
federal income tax purposes and is taxable to shareholders in 1997 as a
long-term gain from the sale of capital assets, no matter how long you may have
owned your shares, or whether the distribution was received in shares or in
cash. However, if shares on which a capital gain distribution was received are
subsequently sold, and such shares have been held for six months or less from
the date of purchase, any loss on the sale would be treated as long-term to the
extent that it offsets the long-term gain distribution. The net short-term gain
is taxable as ordinary income whether paid to you in shares or in cash.
If the distribution was received in shares, the per share cost basis for
federal income tax purposes is $24.41 for Class A shares, $23.07 and $23.05 for
Class B and D shares, respectively.
A year-end statement of account showing activity for 1997, a Form 1099-DIV,
and if applicable, a Form 1099-B has been mailed to each shareholder. Form
1099-B shows the proceeds of any redemptions paid to the shareholder during the
year and reported to the Internal Revenue Service as required by federal
regulations. Form 1099-DIV shows the amount of the distribution from gain on
investments paid to the shareholder during the year.
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5
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Performance Overview
This chart compares a $10,000 hypothetical investment made in Seligman
Communications and Information Fund Class A shares, with and without the initial
4.75% maximum sales charge, for the 10-year period ended December 31, 1997, to a
$10,000 investment made in the Lipper Science &Technology Funds Average (Lipper
Science &Technology Average), and the Standard &Poor's 500 Composite Stock Price
Index (S&P 500) for the same period. The performances of Seligman Communications
and Information Fund Class B and Class D shares are not shown in this chart but
are included in the table on page 7. It is important to keep in mind that the
Lipper Science &Technology Average excludes the effect of sales charges and the
S&P500 excludes the effect of fees and sales charges.
[THE FOLLOWING TABLE WAS DEPICTED AS A LINE CHART IN THE PRINTED MATERIAL]
Seligman Communications and Information Fund Class A
Lipper Science &
W/O Sales Charge With Sales Charge Technology Average S&P 500
---------------- ----------------- ------------------ -------
12/31/87 10,000 9,523 10,000 10,000
3/31/88 10,294 9,804 10,481 10,569
6/30/88 11,011 10,486 11,441 11,273
9/30/88 10,334 9,841 10,484 11,311
12/31/88 10,733 10,222 10,485 11,661
3/31/89 11,618 11,064 10,776 12,487
6/30/89 12,716 12,110 11,605 13,590
9/30/89 14,283 13,602 12,706 15,046
12/31/89 13,966 13,300 12,646 15,356
3/31/90 14,726 14,024 13,387 14,893
6/30/90 15,928 15,168 15,011 15,830
9/30/90 10,968 10,446 11,025 13,655
12/31/90 12,420 11,828 12,811 14,879
3/31/91 16,789 15,988 16,549 17,040
6/30/91 14,828 14,122 15,203 17,001
9/30/91 17,013 16,202 17,016 17,911
12/31/91 19,239 18,322 19,225 19,412
3/31/92 19,871 18,924 19,396 18,921
6/30/92 17,859 17,008 18,006 19,280
9/30/92 17,925 17,071 18,797 19,887
12/31/92 22,570 21,494 22,336 20,888
3/31/93 22,882 21,791 22,737 21,801
6/30/93 25,744 24,517 24,773 21,907
9/30/93 29,726 28,309 27,291 22,473
12/31/93 30,497 29,044 27,597 22,994
3/31/94 31,837 30,320 28,102 22,123
6/30/94 29,385 27,984 26,246 22,215
9/30/94 38,127 36,310 30,432 23,302
12/31/94 41,263 39,296 32,356 23,297
3/31/95 47,066 44,822 34,523 25,566
6/30/95 61,076 58,165 41,518 28,008
9/30/95 69,135 65,840 48,143 30,234
12/31/95 59,165 56,345 45,438 32,055
3/31/96 55,990 53,322 45,745 33,776
6/30/96 56,071 53,398 48,882 35,292
9/30/96 59,515 56,678 52,869 36,383
12/31/96 66,227 63,071 55,284 39,417
3/31/97 64,509 61,434 50,274 40,474
6/30/97 75,608 72,004 59,465 47,540
9/30/97 94,397 89,898 70,904 51,101
12/31/97 81,425 77,543 61,173 52,569
A fund that concentrates its investments in one economic sector may be
subject to greater share price fluctuations than a more diversified fund.
The performances of Class B and D shares will be greater than or less than
the performance shown for Class A shares, based on the differences in sales
charges and fees paid by shareholders.
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6
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Performance Overview
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
For Periods Ended December 31, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL
--------------------------------------------------------
CLASS B CLASS D
SINCE SINCE
SIX ONE FIVE 10 INCEPTION INCEPTION
MONTHS* YEAR YEARS YEARS 4/22/96 5/3/93
------- ------- ------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge 2.57% 17.12% 28.01% 22.73% n/a n/a
Without Sales Charge 7.69 22.95 29.25 23.33 n/a n/a
CLASS B**
With CDSL+ 2.95 17.11 n/a n/a 17.03% n/a
Without CDSL 7.21 21.96 n/a n/a 19.14 n/a
CLASS D**
With 1% CDSL 6.32 20.89 n/a n/a n/a n/a
Without CDSL 7.17 21.86 n/a n/a n/a 30.65%
LIPPER SCIENCE & TECHNOLOGY
AVERAGE*** 2.87 10.65 22.32 19.85 11.86++ 24.41+++
S&P 500*** 10.58 33.36 20.27 18.05 29.25++ 21.39+++
</TABLE>
NET ASSET VALUE
DECEMBER 31, 1997 JUNE 30, 1997 DECEMBER 31, 1996
----------------- ------------- -----------------
CLASS A $23.25 $26.84 $23.51
CLASS B 21.94 25.73 22.62
CLASS D 21.91 25.71 22.61
CAPITAL GAIN INFORMATION
For The Year Ended December 31, 1997
PAID $5.937
REALIZED 4.553
UNREALIZED 1.062(o)
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.
- ----------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price per share and assume the
investment of capital gain distributions. Returns for Class A shares are
calculated with and without the effect of the initial 4.75% maximum sales
charge. Returns for Class A shares also reflect the effect of the service
fee of up to 0.25% under the Administration, Shareholder Services and
Distribution Plan after January 1, 1993, only. Returns for Class B shares
are calculated with and without the effect of the maximum 5% contingent
deferred sales load ("CDSL"), charged on redemptions made within one year
of the date of purchase, declining to 1% in the sixth year and 0%
thereafter. Returns for Class D shares are calculated with and without the
effect of the 1% CDSL, charged on redemptions made within one year of the
date of purchase.
*** The Lipper Science & Technology Average is an average of 57 science and
technology funds and excludes the effect of the sales charges that may be
incurred in connection with purchases or sales. The monthly performance is
used in the Performance Overview. The S&P 500 is an unmanaged index that
assumes investment of dividends and excludes the effect of fees and sales
charges. Investors cannot invest directly in an average or an index.
+ The CDSL is 5% for periods of one year or less, and 4% since inception.
++ From April 30, 1996.
+++ From April 30, 1993.
(o) Represents the per share amount of net unrealized appreciation of
portfolio securities as of December 31, 1997.
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7
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Portfolio Overview
DIVERSIFICATION OF ASSETS
December 31, 1997
<TABLE>
<CAPTION>
PERCENT OF NET ASSETS
DECEMBER 31,
---------------------
ISSUES COST VALUE 1997 1996
------ -------------- -------------- ----- ------
<S> <C> <C> <C> <C> <C>
Short-Term Holdings and
Other Assets Less Liabilities 2 $ 220,221,559 $ 220,221,559 4.9 0.5
--- -------------- -------------- ----- -----
Stocks and Convertible Issues:
Communications Infrastructure ........... 13 323,993,522 312,051,637 6.8 18.1
Computer Hardware/Peripherals ........... 12 794,427,998 870,201,437 19.1 25.7
Computer Software ....................... 18 710,449,362 734,283,594 16.1 14.7
Contract Manufacturing/Circuit Boards ... 4 194,621,738 184,395,781 4.0 2.7
Electronics Capital Equipment ........... 13 800,301,019 719,251,209 15.8 7.4
Information Services .................... 8 317,302,482 347,286,563 7.6 3.5
Internet/On Line ........................ -- -- -- -- 1.8
Media ................................... 10 319,553,667 517,789,688 11.4 3.6
Semiconductors .......................... 13 617,674,990 607,722,112 13.3 19.8
Telecommunications ...................... 3 47,384,939 44,544,812 1.0 0.6
Miscellaneous ........................... -- -- -- -- 1.6
Other ................................... 1 -- 442,500 -- --
--- -------------- -------------- ----- -----
95 4,125,709,717 4,337,969,333 95.1 99.5
--- -------------- -------------- ----- -----
Net Assets ................................. 97 $4,345,931,276 $4,558,190,892 100.0 100.0
=== ============== ============== ===== =====
</TABLE>
LARGEST INDUSTRIES
At December 31, 1997
[THE FOLLOWING TABLE WAS DEPICTED AS A BAR CHART IN THE PRINTED MATERIAL]
LARGEST INDUSTRIES
At December 31, 1997
Percent of
Net Assets
----------
Computer
Hardware/
Peripherals $870,201,437 19.1%
Computer
Software $743,283,594 16.1%
Electronics
Capital
Equipment $719,251,209 15.8%
Semiconductors $607,722,112 13.3%
Media $517,789,866 11.4%
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Portfolio Overview
LARGEST PORTFOLIO CHANGES
During Past Six Months
SHARES
-----------------------
HOLDINGS
ADDITIONS INCREASE 12/31/97
- --------- --------- ---------
Atmel......................... 1,000,000 1,000,000
Creative Technology........... 2,750,000 4,250,000
Electronics for Imaging....... 3,000,000 4,600,000
First Data.................... 2,400,000 2,400,000
Galileo International......... 1,850,000 1,850,000
Gartner Group (Class A)....... 2,025,000 2,025,000
Jabil Circuit................. 1,400,000 1,400,000
Network Associates............ 910,000 2,400,000(1)
Sanmina....................... 930,000 930,000
Teradyne...................... 1,350,000 3,250,000
SHARES
-----------------------
HOLDINGS
REDUCTIONS DECREASE 12/31/97
- ---------- --------- ---------
Advanced Micro Devices........ 3,000,000 --
Altera........................ 600,000 500,000
Analog Devices................ 1,700,000 --
BMC Software.................. 1,700,000 --
Linear Technology............. 800,000 --
Maxim Integrated Products..... 506,000 2,563,000(2)
Quantum....................... 3,500,000 --
SCI Systems................... 1,050,000(3) --
Western Digital............... 2,100,000 --
WorldCom...................... 1,400,000 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
(1) Includes shares from the purchase and merger of McAfee Associates and
Network General into Network Associates.
(2) Includes 1,269,000 shares received as a result of a 2-for-1 stock split.
(3) Includes 450,000 shares received as a result of a 2-for-1 stock split.
LARGEST PORTFOLIO HOLDINGS
At December 31, 1997
SECURITY VALUE
- -------- --------------
EMC........................... $193,434,375
Storage Technology............ 148,650,000
CBS........................... 147,187,500
Network Associates............ 126,675,000
Parametric Technology......... 123,012,500
Chancellor Media.............. 121,316,407
Synopsys...................... 107,062,500
Teradyne...................... 104,000,000
Lattice Semiconductor......... 99,750,000
Creative Technology........... 93,234,375
-----
9
<PAGE>
================================================================================
Portfolio of Investments
December 31, 1997
SHARES VALUE
------ -----
COMMON STOCKS 93.7%
COMMUNICATIONS
INFRASTRUCTURE 6.7%
Aspect Telecommunications*
Developer and manufacturer
of automated call distribution
equipment 1,656,000 $ 34,776,000
CIDCO*(o)
Manufacturer of telephone
caller identification systems 1,500,000 28,593,750
Cisco Systems*
Manufacturer of computer
network routers and switches 1,200,000 66,975,000
Diamond Lane Communications*#
Designer of high-speed ADSL
modems and related networking
equipment 202,020 1,999,998
ECI Telecommunications (Israel)
Manufacturer of digital
telecommunications and data
transmissions systems 2,350,000 60,071,875
L.M. Ericsson Telefon (ADRs)
(Sweden)
Manufacturer of
telecommunications equipment 150,000 5,601,563
Excel Switching*
Designer and marketer of
wireless switching equipment 890,000 15,964,375
Lucent Technologies
Manufacturer of
telecommunications equipment 150,000 11,981,250
Nokia (Class A) (ADRs) (Finland)
Developer and manufacturer of
telecommunications systems 116,300 8,141,000
Oak Industries*(o)
Manufacturer of cable
television connectors and
fiber optics components 1,050,000 31,171,875
QUALCOMM*
Developer, manufacturer, and
marketer of communications
systems and products 200,000 10,106,250
Tellabs*
Designer, manufacturer, and
marketer of telecommunications
transmission equipment 600,000 31,668,750
--------------
307,051,686
--------------
COMPUTER HARDWARE/
PERIPHERALS 19.1%
Adaptec*
Supplier of computer
input/output systems 1,850,000 68,796,875
American Power Conversion*
Manufacturer of constant
power supply products 2,050,000 48,559,375
Creative Technology*
Marketer of PC audio
products 4,250,000 93,234,375
Data General*
Multi-processor computers
and data storage systems 1,000,000 17,437,500
Electronics for Imaging*(o)
Manufacturer of peripherals
for color copiers 4,600,000 76,331,250
EMC*
Manufacturer of enterprise
data storage systems 7,050,000 193,434,375
Encad*(o)
Designer and marketer of
wide-format printer products 750,000 20,812,500
Gateway 2000*
Manufacturer and direct
marketer of personal
computers 1,050,000 34,256,250
In Focus Systems*(o)
Manufacturer of portable
projection systems 685,000 21,020,937
Lexmark International Group
(Class A)*
Manufacturer of laser and
inkjet printers and cartridges 2,298,500 87,343,000
Read-Rite*(o)
Manufacturer of recording
heads for disk drives 3,800,000 60,325,000
Storage Technology*
Tape- and disk-based data
storage equipment 2,400,000 148,650,000
--------------
870,201,437
--------------
COMPUTER SOFTWARE 15.9%
3DO*(o)
Developer of video game and
PC entertainment software 2,200,000 4,778,125
- ----------
See footnotes on page 14.
- -----
10
<PAGE>
================================================================================
Portfolio of Investments
December 31, 1997
SHARES VALUE
------ -----
COMPUTER SOFTWARE (continued)
Activision*(o)
Developer of video game and
PC entertainment software 1,000,000 $ 17,937,500
Ambit Design Systems*#
Developer of integrated
circuit design software 500,000 2,000,000
ANSYS*(o)
Developer of engineering
analysis software 1,350,000 9,660,937
Cadence Design System*
Electronic design
automation software 2,350,000 57,575,000
CheckPoint Software Technology
Developer of network
"firewall" security software 50,000 2,043,750
Compuware*
Mainframe software and
consulting services 1,600,000 51,250,000
CrossRoads Software*#
Developer of connecting
software to link
client/server applications 800,000 4,000,000
Electronic Arts*
Developer, marketer, and
distributor of entertainment
software 1,250,000 47,304,688
Gemstar International Group*
(Bermuda)
Developer and marketer of
proprietary VCR programming
software 1,075,000 25,867,188
Microsoft*
Developer of personal
computer operating systems
and application software 175,000 22,613,281
Network Associates*(o)
Supplier of network
security and management
solutions 2,400,000 126,675,000
Parametric Technology*
Developer of mechanical
design software 2,600,000 123,012,500
Simulation Sciences*
Provider of application
software for the petroleum
and chemical industries 500,000 8,125,000
Structural Dynamics Research*(o)
Developer of mechanical
design software 3,250,000 73,531,250
Synopsys*
Developer of integrated circuit
design software 3,000,000 107,062,500
Viasoft*
Software and services vendor
specializing in "Year 2000"
testing 950,000 40,196,875
--------------
723,633,594
--------------
CONTRACT MANUFACTURING/
CIRCUIT BOARDS 4.0%
ADFlex Solutions*(o)
Manufacturer of
flexible circuit boards 900,000 14,681,250
Hadco*(o)
Manufacturer of complex
printed circuit boards 1,125,000 50,941,406
Jabil Circuit*
Electronic contract
manufacturing services 1,400,000 55,475,000
Sanmina*
Manufacturer of back planes
and provider of contract
manufacturing services 930,000 63,298,125
--------------
184,395,781
--------------
ELECTRONICS CAPITAL
EQUIPMENT 15.8%
Applied Materials*
Manufacturer of
semiconductor fabrication
equipment 2,000,000 60,187,500
ASM Lithography* (Netherlands)
Manufacturer of
photolithography equipment 400,000 27,025,000
ASM Lithography* (Netherlands)
Manufacturer of
photolithography equipment 600,000 39,378,240
Asyst Technologies*(o)
Manufacturer of miniature
clean-room environments
for the manufacture of
silicon wafers 630,000 13,860,000
- ----------
See footnotes on page 14.
-----
11
<PAGE>
================================================================================
Portfolio of Investments
December 31, 1997
SHARES VALUE
------ -----
ELECTRONICS CAPITAL
EQUIPMENT (continued)
Cognex*(o)
Manufacturer of machine
vision systems 2,350,000 $ 64,184,375
Credence Systems*(o)
Manufacturer of automated
semiconductor test equipment 2,180,000 64,446,250
Electro Scientific Industries*(o)
Manufacturer of memory
circuit repair systems and
circuit board drilling systems 1,110,000 42,526,875
Etec Systems*(o)
Designer and manufacturer
of photomask manufacturing
systems 1,800,000 83,587,500
Integrated Process Equipment*(o)
Manufacturer of chemical
mechanical polishing
equipment 500,000 7,890,625
KLA-Tencor*
Manufacturer of wafer
inspection and metrology
equipment 2,100,000 81,046,875
Kulicke & Soffa Industries*(o)
Manufacturer of semiconductor
packaging equipment 2,300,000 42,981,250
Novellus Systems*(o)
Manufacturer of chemical vapor
deposition equipment 2,725,000 88,136,719
Teradyne*
Manufacturer of semiconductor
test equipment 3,250,000 104,000,000
--------------
719,251,209
--------------
INFORMATION SERVICES 7.6%
BISYS Group*
Provider of data processing
services for banks 1,090,000 36,378,750
Computer Sciences*
Computer services and
systems integration 500,000 41,750,000
First Data*
Transaction processing services 2,400,000 70,200,000
Galileo International
Provider of travel reservation
data services 1,850,000 51,106,250
Gartner Group (Class A)*
Provider of information
technology consulting and
training products 2,025,000 75,557,813
Information Resources*
Provider of computerized
databases and software
products 1,000,000 13,437,500
Mastech*
Provider of information
technology services 1,150,000 36,656,250
Unisys*
Manufacturer of business
information systems 1,600,000 22,200,000
--------------
347,286,563
--------------
MEDIA 10.3%
Belo (A.H.) (Class A)*
Diversified media company
with interests in television,
publishing, and electronic
media 825,000 46,303,125
CBS
Radio and television
broadcasting 5,000,000 147,187,500
Chancellor Media*
Radio broadcasting 1,625,000 121,316,407
CKS Group*(o)
Internet advertising
services 1,025,000 14,510,156
Clear Channel Communications*
Owner and operator of radio
and television stations 520,000 41,307,500
Cox Radio (Class A)*
Operator of radio stations 860,000 34,615,000
Time Warner
Diversified media and
entertainment company 500,000 31,000,000
Universal Outdoor Holdings*
Outdoor advertising such
as billboards 600,000 31,275,000
--------------
467,514,688
--------------
- ----------
See footnotes on page 14.
- -----
12
<PAGE>
================================================================================
Portfolio of Investments
December 31, 1997
SHARES VALUE
------ -----
SEMICONDUCTORS 13.3%
Altera*
Designer and manufacturer
of field-programmable
logic devices 500,000 $ 16,578,125
Atmel*
Manufacturer of non-volatile
memory circuits 1,000,000 18,593,750
Dallas Semiconductor
Designer, manufacturer, and
marketer of specialty
semiconductors 1,119,400 45,615,550
International Rectifier*
Manufacturer of power
semiconductors 1,300,000 15,356,250
Lattice Semiconductor*(o)
Designer and developer of
programmable logic devices 2,100,000 99,750,000
Maxim Integrated Products*
Designer and manufacturer of
linear and mixed-signal
integrated circuits 2,563,000 88,583,687
Microchip Technology*(o)
Supplier of field-programmable
microcontrollers 2,950,000 88,684,375
National Semiconductor*
Analog circuits and
microprocessors 1,300,000 33,718,750
PMC-Sierra*
Provider of high-speed
networking circuits 1,050,000 32,746,875
Unitrode*(o)
Designer and manufacturer
of analog semiconductors 1,600,000 34,400,000
Vishay Intertechnology*
Manufacturer of capacitors,
resistors, and discrete
semiconductors 2,072,000 48,951,000
VLSI Technology*(o)
Manufacturer of application-
specific semiconductors 2,550,000 60,243,750
Xilinx*
Supplier of field-programmable
gate arrays 700,000 24,500,000
--------------
607,722,112
--------------
SHARES OR
PRIN. AMT. VALUE
------------ ------
TELECOMMUNICATIONS 1.0%
General Communications*
Provider of diversified
telecommunications services
in Alaska 1,781,000 shs. $11,910,437
MCI Communications
Provider of
telecommunications
services 500,000 21,421,875
Millicom International Cellular*
(Luxembourg)
Cellular services operator 300,000 11,212,500
--------------
44,544,812
--------------
OTHER 442,500
--------------
TOTAL COMMON STOCKS
(Cost $4,083,206,616) 4,272,044,382
--------------
CONVERTIBLE ISSUES 1.3%
CONVERTIBLE BONDS 0.2%
(Cost $10,003,150)
COMPUTER SOFTWARE 0.2%
Activision,
63 1/4%, due 1/1/2005+
Developer of
entertainment software $10,000,000 10,650,000
--------------
CONVERTIBLE
PREFERRED STOCKS 1.1%
MEDIA 1.1%
Chancellor Media, 7%
Radio broadcasting 250,000 shs. 27,062,500
Chancellor Media, $3+
Radio broadcasting 300,000 23,212,500
--------------
TOTAL CONVERTIBLE
PREFERRED STOCKS
(Cost $27,500,000) 50,275,000
--------------
TOTAL CONVERTIBLE ISSUES
(Cost $37,503,150) 60,925,000
--------------
- ----------
See footnotes on page 14.
-----
13
<PAGE>
================================================================================
Portfolio of Investments
December 31, 1997
SHARES OR
PRIN. AMT. VALUE
------------ ------
PREFERRED STOCKS 0.1%
(Cost $4,999,951)
COMMUNICATIONS
INFRASTRUCTURE 0.1%
UniSite (Class C)*#
Provider of wireless
shared radio sites 10,796 shs. $ 4,999,951
--------------
SHORT-TERM HOLDINGS 5.2%
Canadian Imperial Bank of
Commerce, Grand Cayman
Fixed Time Deposit
6 5/8%, 1/2/1998 $117,700,000 117,700,000
First National Bank of
Chicago, Grand Cayman
Fixed Time Deposit
6 5/8%, 1/2/1998 117,700,000 117,700,000
--------------
TOTAL SHORT-TERM
HOLDINGS
(Cost $ 235,400,000) 235,400,000
--------------
VALUE
------
TOTAL INVESTMENTS 100.3%
(Cost $4,361,109,717) $4,573,369,333
OTHER ASSETS
LESS LIABILITIES (0.3)% (15,178,441)
--------------
NET ASSETS 100.0% $4,558,190,892
==============
- ----------
* Non-income producing security.
+ Rule 144A security.
# Restricted securities.
(o) Affiliated issuers (Fund's holdings representing 5% or more of the
outstanding voting securities).
Descriptions of companies have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
- -----
14
<PAGE>
================================================================================
Statement of Assets and Liabilities
December 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments, at value:
Common stocks and convertible issues* (cost $4,125,709,717) .. $4,337,969,333
Short-term holdings (cost $235,400,000) ...................... 235,400,000 $4,573,369,333
--------------
Cash ........................................................................... 609,195
Receivable for securities sold ................................................. 57,661,293
Receivable for Capital Stock sold .............................................. 30,128,895
Expenses prepaid to shareholder service agent .................................. 1,216,106
Receivable for interest and dividends .......................................... 300,195
Other .......................................................................... 118,748
--------------
Total Assets ................................................................... 4,663,403,765
--------------
LIABILITIES:
Payable for securities purchased ............................................... 71,467,264
Payable for Capital Stock repurchased .......................................... 25,290,395
Accrued expenses, taxes, and other ............................................. 8,455,214
--------------
Total Liabilities .............................................................. 105,212,873
--------------
Net Assets ..................................................................... $4,558,190,892
==============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($.10 par value; 1,000,000,000
shares authorized; 199,823,182 shares outstanding):
Class A ...................................................................... $ 13,364,592
Class B ...................................................................... 2,303,497
Class D ...................................................................... 4,314,229
Additional paid-in capital ..................................................... 4,316,303,246
Accumulated net investment loss ................................................ (114,234)
Undistributed net realized gain ................................................ 9,759,946
Net unrealized appreciation of investments ..................................... 212,259,616
--------------
Net Assets ..................................................................... $4,558,190,892
==============
NET ASSET VALUE PER SHARE:
Class A ($3,107,480,737 / 133,645,917 shares) .................................. $23.25
======
Class B ($505,342,441 / 23,034,971 shares) ..................................... $21.94
======
Class D ($945,367,714 / 43,142,294 shares) ..................................... $21.91
======
</TABLE>
- ----------
* Includes affiliated issuers (issuers in which the Fund's holdings represent
5% or more of the outstanding voting securities) with a cost of
$1,484,390,462 and a value of $1,241,662,655.
See Notes to Financial Statements.
-----
15
<PAGE>
================================================================================
Statement of Operations
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest ................................................. $ 9,197,385
Dividends ................................................ 3,537,217
------------
Total Investment Income ................................................... $ 12,734,602
EXPENSES:
Management fee ........................................... 35,523,038
Distribution and service fees ............................ 18,542,453
Shareholder account services ............................. 11,898,218
Shareholder reports and communications ................... 1,608,952
Registration ............................................. 1,064,860
Custody and related services ............................. 999,671
Auditing and legal fees .................................. 123,504
Directors' fees and expenses ............................. 67,952
Miscellaneous ............................................ 148,043
------------
Total Expenses ............................................................ 69,976,691
------------
Net Investment Loss ....................................................... (57,242,089)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments* ........................ 909,728,876
Net change in unrealized appreciation of investments ..... (144,024,652)
------------
Net Gain on Investments ................................................... 765,704,224
------------
Increase in Net Assets from Operations .................................... $708,462,135
============
</TABLE>
- ----------
* Includes net realized gain from affiliated issuers of $257,097,287.
See Notes to Financial Statements.
- -----
16
<PAGE>
================================================================================
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1997 1996
------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment loss ............................................. $ (57,242,089) $ (38,954,438)
Net realized gain on investments ................................ 909,728,876 153,061,653
Net change in unrealized appreciation of investments ............ (144,024,652) 238,743,809
------------- -------------
Increase in Net Assets from Operations .......................... 708,462,135 352,851,024
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments:
Class A ...................................................... (621,494,484) (105,584,145)
Class B ...................................................... (87,967,545) (4,686,401)
Class D ...................................................... (196,816,410) (33,293,284)
------------- -------------
Decrease in Net Assets from Distributions ....................... (906,278,439) (143,563,830)
------------- -------------
SHARES
--------------------------
YEAR ENDED DECEMBER 31,
--------------------------
1997 1996
------------ -----------
CAPITAL SHARE TRANSACTIONS:*
Net proceeds from sale of shares:
Class A ........................ 30,847,206 34,422,498 837,264,966 749,537,882
Class B ........................ 14,952,067 5,362,644 391,781,442 113,021,809
Class D ........................ 8,669,975 11,596,458 225,248,842 243,586,540
Exchanged from associated Funds:
Class A ........................ 29,422,861 37,176,372 787,728,489 814,655,013
Class B ........................ 1,194,212 94,188 29,695,869 1,982,642
Class D ........................ 12,022,132 3,580,521 310,543,695 75,837,958
Shares issued in payment of
gain distributions:
Class A ........................ 23,313,230 4,368,020 569,075,182 98,062,037
Class B ........................ 3,579,064 201,358 82,568,805 4,351,357
Class D ........................ 7,940,049 1,434,633 183,018,029 30,988,033
------------ ----------- -------------- --------------
Total ............................. 131,940,796 98,236,692 3,416,925,319 2,132,023,271
------------ ----------- -------------- --------------
Cost of shares repurchased:
Class A ........................ (23,014,559) (21,671,916) (611,914,607) (474,588,279)
Class B ........................ (1,035,991) (126,718) (27,730,271) (2,780,813)
Class D ........................ (6,201,793) (7,424,660) (158,791,776) (156,046,056)
Exchanged into associated Funds:
Class A ........................ (29,624,808) (39,839,103) (799,242,903) (874,567,022)
Class B ........................ (997,743) (188,110) (25,590,755) (4,005,480)
Class D ........................ (11,933,465) (5,088,386) (311,146,906) (105,848,538)
------------ ----------- -------------- --------------
Total ............................. (72,808,359) (74,338,893) (1,934,417,218) (1,617,836,188)
------------ ----------- -------------- --------------
Increase in Net Assets from Capital
Share Transactions ................ 59,132,437 23,897,799 1,482,508,101 514,187,083
============ =========== -------------- --------------
Increase in Net Assets .......................................... 1,284,691,797 723,474,277
NET ASSETS:
Beginning of year ............................................... 3,273,499,095 2,550,024,818
-------------- --------------
End of Year (including accumulated net investment loss of
$114,234 and $102,022, respectively) ............................ $4,558,190,892 $3,273,499,095
============== ==============
</TABLE>
- ----------
* The Fund began offering Class B shares on April 22, 1996.
See Notes to Financial Statements.
-----
17
<PAGE>
================================================================================
Notes to Financial Statements
1. Multiple Classes of Shares -- Seligman Communications and Information Fund,
Inc. (the "Fund") offers three classes of shares. All shares existing prior to
May 3, 1993, the commencement of Class D shares, were classified as Class A
shares. The Fund began offering Class B shares on April 22, 1996. 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 A shares purchased in an amount of
$1,000,000 or more are sold without an initial sales charge but are subject to a
contingent deferred sales load ("CDSL") of 1% on redemptions within 18 months of
purchase. Class B shares are sold without an initial sales charge but are
subject to a distribution fee of 0.75%, a service fee of up to 0.25% on an
annual basis, and a CDSL, if applicable, of 5% on redemptions in the first year
of purchase, declining to 1% in the sixth year and 0% thereafter. Class B shares
will automatically convert to Class A shares on the last day of the month that
precedes the eighth anniversary of their date of purchase. 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 CDSL, if
applicable, of 1% imposed on redemptions made within one year of purchase. The
three 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 other class
expenses, and has exclusive voting rights with respect to any matter on which a
separate vote of any class is required.
2. Significant Accounting Policies -- The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make certain estimates and assumptions at the date of the
financial statements. The following summarizes the significant accounting
policies of the Fund:
a. Security Valuation -- Investments in convertible securities and common
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,
at the mean of bid and asked prices. Short-term holdings maturing in 60 days
or less are valued at amortized cost.
b. Federal Taxes -- There is no provision for federal income 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. Security Transactions and Related Investment Income -- 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. Multiple Class Allocations -- 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 attributable to a
particular class, are charged directly to such class. For the year ended
December 31, 1997, distribution and service fees were the only
class-specific expenses.
e. Distributions to Shareholders -- The treatment for financial statement
purposes of distributions made to shareholders 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 realized 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 Securities -- Purchases and sales of portfolio
securities, excluding US Government obligations and short-term investments, for
the year ended December 31, 1997, amounted to $6,650,931,325 and $6,334,624,528,
respectively.
At December 31, 1997, 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 $604,883,743 and $392,624,127, respectively.
4. Management Fee, Administrative Services, and Other Transactions -- 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 0.90%
per annum of the first $3 billion of the Fund's average daily net assets, 0.85%
per annum of the next $3 billion of the Fund's average daily net assets and
0.75% per annum of the Fund's average daily net assets in excess of $6 billion.
The management fee reflected in the Statement of Operations represents 0.89% per
annum of the Fund's average daily net assets.
- -----
18
<PAGE>
================================================================================
Notes to Financial Statements
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of the Fund's shares and an affiliate of the Manager, received
concessions of $2,126,669 from sales of Class A shares, after commissions of
$17,264,591 were paid to dealers.
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to distribution of its shares. Under the Plan, with
respect to Class A shares, 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 year ended December 31,
1997, fees incurred aggregated $7,044,674, or 0.25% per annum of the average
daily net assets of Class A shares.
Under the Plan, with respect to Class B and Class D shares, 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 B and Class D shares for which the organizations are
responsible; and, for Class D shares only, 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.
With respect to Class B shares, a distribution fee of 0.75% on an annual
basis of average daily net assets is payable monthly by the Fund to the
Distributor; however, the Distributor has sold its rights to substantially all
of this fee to a third party (the "Purchaser"), which provides funding to the
Distributor to enable it to pay commissions to dealers at the time of the sale
of the related Class B shares.
For the year ended December 31, 1997, fees incurred under the Plan,
equivalent to 1% per annum of the average daily net assets of Class B and Class
D shares, amounted to $2,784,474 and $8,713,305, respectively.
The Distributor is entitled to retain any CDSL imposed on redemptions of
Class D shares occurring within one year of purchase and on certain redemptions
of Class A shares occurring within 18 months of purchase. For the year ended
December 31, 1997, such charges amounted to $266,694.
The Distributor has sold its rights to collect any CDSL imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSL and the distribution fees with respect to Class B
shares described above, the Distributor receives payments from the Purchaser
based on the value of Class B shares sold. The aggregate amount of such payments
and the Class B shares distribution fees retained by the Distributor, for the
year ended December 31, 1997, amounted to $1,048,230.
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Fund, as well as distribution
and service fees pursuant to the Plan. For the year ended December 31, 1997,
Seligman Services, Inc. received commissions of $494,285 from the sales of
shares of the Fund. Seligman Services, Inc. also received distribution and
service fees of $961,731, pursuant to the Plan.
Seligman Data Corp., which is owned by certain associated investment
companies, charged the Fund at cost $11,898,218 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.
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 annual cost of such fees and interest is included in directors'
fees and expenses and the accumulated balance thereof at December 31, 1997,
of $114,234 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. Committed Line of Credit -- Effective July 23, 1997, the Fund increased its
committed line of credit facility with a group of banks to $340 million from
$280 million. Borrowings pursuant to the credit facility are subject to interest
at a rate equal to the federal funds rate plus 0.50% per annum. The Fund incurs
a commitment fee of 0.10% per annum on the unused portion of the credit
facility. The credit facility may be drawn upon only for temporary purposes and
is subject to certain other customary restrictions. The credit facility
commitment expires one year from the date of the agreement but is renewable with
the consent of the participating banks. To date, the Fund has not borrowed from
the credit facility.
-----
19
<PAGE>
================================================================================
Notes to Financial Statements
6. Affiliated Issuers -- As defined under the Investment Company Act of 1940, as
amended, affiliated issuers are those in which the Fund's holdings of an issuer
represent 5% or more of the outstanding voting securities of the issuer. A
summary of the Fund's transactions in the securities of these issuers during the
year ended December 31, 1997, is as follows:
<TABLE>
<CAPTION>
GROSS GROSS REALIZED
BEGINNING PURCHASES SALES AND ENDING GAIN DIVIDEND ENDING
AFFILIATE SHARES AND ADDITIONS REDUCTIONS SHARES (LOSS) INCOME VALUE
- --------- ---------- ------------- ---------- ---------- ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
3DO ........................... 2,200,000 100,000 100,000 2,200,000 $ (801,623) -- $ 4,778,125
Activision..................... 1,000,000 400,000 400,000 1,000,000 823,816 -- 17,937,500
ADFlex Solutions............... 750,000 355,000 205,000 900,000 (1,065,874) -- 14,681,250
Altron......................... 900,000 -- 900,000 -- 3,308,107 -- --
ANSYS.......................... 850,000 500,000 -- 1,350,000 -- -- 9,660,937
Asyst Technologies............. 500,000 787,600 657,600 630,000 14,920,462 -- 13,860,000
CIDCO.......................... 1,500,000 -- -- 1,500,000 -- -- 28,593,750
Cognex......................... 1,600,000 1,050,000 300,000 2,350,000 3,516,762 -- 64,184,375
Credence Systems............... 1,800,000 580,000 200,000 2,180,000 6,412,170 -- 64,446,250
CKS Group...................... -- 1,025,000 -- 1,025,000 -- -- 14,510,156
Encad.......................... -- 750,000 -- 750,000 -- -- 20,812,500
Electronics for Imaging........ 900,000 4,400,000 700,000 4,600,000 18,199,594 -- 76,331,250
Electro Scientific Industries . 800,000 310,000 -- 1,110,000 -- -- 42,526,875
Etec Systems................... 1,150,000 2,266,300 1,616,300 1,800,000 25,797,204 -- 83,587,500
Fusion Systems................. 590,000 -- 590,000 -- 6,831,540 -- --
Hadco.......................... 540,000 1,772,200 1,187,200 1,125,000 31,716,927 -- 50,941,406
In Focus Systems............... 700,000 300,000 315,000 685,000 5,814,982 -- 21,020,937
Integrated Process Equipment .. 400,000 1,450,000 1,350,000 500,000 9,870,015 -- 7,890,625
Kulicke & Soffa Industries .... -- 2,953,100 653,100 2,300,000 9,104,646 -- 42,981,250
Lattice Semiconductor.......... 1,900,000 1,653,600 1,453,600 2,100,000 37,439,203 -- 99,750,000
Microchip Technology........... 1,325,000 2,418,700 793,700 2,950,000 13,866,524 -- 88,684,375
Mylex.......................... 1,750,000 250,000 2,000,000 -- (14,522,821) -- --
Network Associates............. 1,500,000 1,150,000 250,000 2,400,000 942,600 -- 126,675,000
Novellus Systems............... 1,000,000 3,275,000 1,550,000 2,725,000 44,629,745 -- 88,136,719
Oak Industries................. 1,000,000 50,000 -- 1,050,000 -- -- 31,171,875
Read-Rite...................... 400,000 3,800,000 400,000 3,800,000 4,172,585 -- 60,325,000
Structural Dynamics Research .. 2,600,000 950,000 300,000 3,250,000 1,173,509 -- 73,531,250
Unitrode....................... -- 1,600,000 -- 1,600,000 -- -- 34,400,000
Veeco Instruments.............. -- 415,000 415,000 -- 5,661,109 -- --
VLSI Technology................ -- 4,750,000 2,200,000 2,550,000 29,286,105 -- 60,243,750
------------ --------------
TOTAL ......................... $257,097,287 $1,241,662,655
============ ==============
</TABLE>
7. Restricted Securities -- At December 31, 1997, the Fund owned four private
placement investments that were purchased through private offerings and cannot
be sold without prior registration under the Securities Act of 1933 or pursuant
to an exemption therefrom. In addition, the Fund has agreed to further
restrictions on the disposition of its shares as set forth in various agreements
entered into in connection with the purchase of these investments. These
investments are valued at fair value as determined in accordance with procedures
approved by the Board of Directors of the Fund. The acquisition dates of these
investments, along with their cost and values at December 31, 1997, are as
follows:
INVESTMENTS ACQUISITION DATES COST VALUE
- ----------- ----------------- ----------- -----------
Ambit Design Systems 12/4/97 $ 2,000,000 $ 2,000,000
CrossRoads Software 12/23/97 4,000,000 4,000,000
Diamond Lane Communications 9/4/97 1,999,998 1,999,998
UniSite (Class C Preferred Stock) 12/19/97 4,999,951 4,999,951
----------- -----------
$12,999,949 $12,999,949
=========== ===========
- -----
20
<PAGE>
================================================================================
Financial Highlights
The Fund's financial highlights are presented below. "Per share operating
performance" data is designed to allow investors to trace the operating
performance of each Class, on a per share basis, from the beginning net asset
value to the ending net asset value, so that investors can understand what
effect the individual items have on their investment, assuming it was held
throughout the period. Generally, 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.
"Total return based on net asset value" measures each Class's performance
assuming that investors purchased Fund shares at net asset value as of the
beginning of the period, invested dividends and capital gains paid at net asset
value, and then sold their shares at the net asset value 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. Total returns for periods
of less than one year are not annualized.
"Average commission rate paid" represents the average commission paid by the
Fund to purchase or sell portfolio securities. It is determined by dividing the
total commission dollars paid by the number of shares purchased and sold during
the period for which commissions were paid. This rate is provided for periods
beginning January 1, 1996.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
1997(o) 1996(o) 1995(o) 1994(o) 1993
-------- -------- -------- -------- --------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year ............. $23.51 $21.99 $16.64 $13.43 $12.30
------- ------- ------- ------- -------
Net investment loss ............................ (0.33) (0.26) (0.33) (0.19) (0.14)
Net realized and unrealized investment gain .... 6.01 2.84 7.59 4.86 4.37
------- ------- ------- ------- -------
Increase from Investment Operations ............ 5.68 2.58 7.26 4.67 4.23
Distributions from net gain realized ........... (5.94) (1.06) (1.91) (1.46) (3.10)
------- ------- ------- ------- -------
Net Increase (Decrease) in Net Asset Value ..... (0.26) 1.52 5.35 3.21 1.13
------- ------- ------- ------- -------
Net Asset Value, End of Year ................... $23.25 $23.51 $21.99 $16.64 $13.43
======= ======= ======= ======= =======
TOTAL RETURN BASED ON NET ASSET VALUE: ......... 22.95% 11.94% 43.39% 35.30% 35.13%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ................. 1.53% 1.68% 1.61% 1.65% 1.63%
Net investment loss to average net assets ...... (1.21)% (1.16)% (1.31)% (1.27)% (1.39)%
Portfolio turnover ............................. 164.57% 121.32% 65.77% 104.08% 137.10%
Average commission rate paid ................... $.0544 $.0531
Net Assets, End of Year (000s omitted) ......... $3,107,481 $2,414,672 $1,940,693 $307,542 $92,987
</TABLE>
- ----------
See footnotes on page 22.
-----
21
<PAGE>
================================================================================
Financial Highlights
<TABLE>
<CAPTION>
CLASS B CLASS D
------------------------- ----------------------------------------------------
YEAR 4/22/96* YEAR ENDED DECEMBER 31, 5/3/93*
ENDED TO ----------------------------------------- TO
12/31/97(o) 12/31/96(o) 1997(o) 1996(o) 1995(o) 1994(o) 12/31/93
------------ ------------ -------- -------- -------- -------- --------
PER SHARE OPERATING
PERFORMANCE:
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year ....... $22.62 $21.51 $22.61 $21.35 $16.31 $13.32 $12.24
------ ------ ------ ------ ------ ------ ------
Net investment loss ...................... (0.50) (0.28) (0.50) (0.40) (0.50) (0.33) (0.05)
Net realized and unrealized investment
gain ..................................... 5.76 2.45 5.74 2.72 7.45 4.78 4.23
------ ------ ------ ------ ------ ------ ------
Increase from Investment
Operations ............................... 5.26 2.17 5.24 2.32 6.95 4.45 4.18
Distributions from net gain realized ..... (5.94) (1.06) (5.94) (1.06) (1.91) (1.46) (3.10)
------ ------ ------ ------ ------ ------ ------
Net Increase (Decrease)
in Net Asset Value ....................... (0.68) 1.11 (0.70) 1.26 5.04 2.99 1.08
------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Year ............. $21.94 $22.62 $21.91 $22.61 $21.35 $16.31 $13.32
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN BASED ON
NET ASSET VALUE: 21.96% 10.30% 21.86% 11.07% 42.37% 33.94% 34.89%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets ........... 2.28% 2.44%+ 2.28% 2.43% 2.37% 2.50% 2.56%+
Net investment loss to average net assets (1.96)% (1.96)%+ (1.96)% (1.91)% (2.07)% (2.20)% (2.33)%+
Portfolio turnover ....................... 164.57% 121.32%++ 164.57% 121.32% 65.77% 104.08% 137.10%+++
Average commission rate paid ............. $.0544 $.0531++ $.0544 $.0531
Net Assets, End of Year
(000s omitted) ........................... $505,342 $120,848 $945,368 $737,979 $609,332 $96,100 $7,833
</TABLE>
- ----------
* Commencement of offering of shares.
(o) Per share amounts for the years ended December 31, 1997, 1996, 1995, and
1994, are calculated based on average shares outstanding.
+ Annualized.
++ For the year ended December 31, 1996.
+++ For the year ended December 31, 1993.
See Notes to Financial Statements.
- -----
22
<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 December 31, 1997, the related statements of operations for the year
then ended and of changes in net assets for each of the years in the two-year
period then ended, and the financial highlights for each of 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
December 31, 1997, 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 December 31, 1997, 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.
DELOITTE & TOUCHE LLP
New York, New York
January 30, 1998
- --------------------------------------------------------------------------------
-----
23
<PAGE>
================================================================================
Board of Directors
- --------------------------------------------------------------------------------
John R. Galvin (2)
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, Raytheon Company
Director, USLIFE Corporation
Alice S. Ilchman (3)
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Chairman, The Rockefeller Foundation
Frank A. McPherson (2)
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow
Retired Chairman and Senior Partner,
Sullivan & Cromwell, Law Firm
Director, Commonwealth Industries, Inc.
Betsy S. Michel (2)
Trustee, Geraldine R. Dodge Foundation
Chairman of the Board of Trustees, St. George's School
William C. Morris (1)
Chairman
Chairman of the Board, J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Kerr-McGee Corporation
James C. Pitney (3)
Retired Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
James Q. Riordan (3)
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Richard R. Schmaltz (1)
Managing Director, J. & W. Seligman & Co. Incorporated
Trustee Emeritus, Colby College
Robert L. Shafer (3)
Retired Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson (2)
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, CommScope, Inc.
Director, C-SPAN
Brian T. Zino (1)
President
President, J. & W. Seligman & Co. Incorporated
Chairman, Seligman Data Corp.
Director Emeritus
Fred E. Brown
Director and Consultant, J. & W. Seligman & Co. Incorporated
- ----------
Member: (1) Executive Committee
(2) Audit Committee
(3) Director Nominating Committee
- --------------------------------------------------------------------------------
Executive Officers
- --------------------------------------------------------------------------------
William C. Morris
Chairman
Brian T. Zino
President
Paul H. Wick
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- --------------------------------------------------------------------------------
- -----
24
<PAGE>
- --------------------------------------------------------------------------------
Glossary of Financial Terms
CAPITAL GAIN DISTRIBUTION -- A payment to mutual fund shareholders of profits
realized on the sale of securities in the fund's portfolio. For tax purposes,
these profits may be taxed at different rates, primarily depending upon the
length of time the securities were owned by the fund.
CAPITAL APPRECIATION/DEPRECIATION -- An increase or decrease in the market value
of a mutual fund's portfolio securities, which is reflected in the net asset
value of the fund's shares. Capital appreciation/depreciation of an individual
security is in relation to the original purchase price.
COMPOUNDING -- The change in the value of an investment as shareholders receive
earnings on their investment's earnings. For example, if $1,000 is invested at a
fixed rate of 7% a year, the initial investment is worth $1,070 after one year.
If the return is compounded, second year earnings will not be based on the
original $1,000, but on the $1,070, which includes the first year's earnings.
CONTINGENT DEFERRED SALES LOAD (CDSL) -- Depending on the class of shares owned,
a fee charged by a mutual fund when shares are sold back to the fund (the CDSL
expires after a fixed time period).
DIVIDEND -- A payment by a mutual fund, usually derived from the fund's net
investment income (dividends and interest less expenses).
DIVIDEND YIELD -- A measurement of a fund's dividend as a percentage of the
maximum offering price.
EXPENSE RATIO -- The cost of doing business for a mutual fund, expressed as a
percent of the fund's net assets.
INVESTMENT OBJECTIVE -- The shared investment goal of a fund and its
shareholders.
MANAGEMENT FEE -- The amount paid by a mutual fund to its investment advisor(s).
MULTIPLE CLASSES OF SHARES -- Although an individual mutual fund invests in only
one portfolio of securities, it may offer investors several purchase options
which are "classes" of shares. Multiple classes permit shareholders to choose
the fee structure that best meets their needs and goals. Generally, each class
will differ in terms of how and when sales charges and certain fees are
assessed.
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. (NASD) -- A self-regulatory
body with authority over firms that distribute mutual funds.
NET ASSET VALUE (NAV) PER SHARE -- The market worth of one fund share, obtained
by adding a mutual fund's total assets (securities, cash, and any accrued
earnings), subtracting liabilities, and dividing the resulting net assets by the
number of shares outstanding.
OFFERING PRICE (OP) -- The price at which a mutual fund's share can be
purchased. The offering price per share is the current net asset value plus any
sales charge.
PORTFOLIO TURNOVER -- A measure of the trading activity in a mutual fund's
investment portfolio that reflects how often securities are bought and sold.
PROSPECTUS -- The legal document describing a mutual fund to all prospective
shareholders. It contains information required by the Securities and Exchange
Commission (SEC), such as a fund's investment objective and policies, services,
investment restrictions, officers and directors, how shares are bought and
redeemed, fund fees and other charges, and the fund's financial statements.
SEC YIELD -- SEC Yield refers to the net income earned by a fund during a recent
30-day period. This income is annualized and then divided by the maximum
offering price per share on the last day of the 30-day period. The SEC Yield
formula reflects semiannual compounding.
SECURITIES AND EXCHANGE COMMISSION -- The primary US federal agency that
regulates the registration and distribution of mutual fund shares.
STATEMENT OF ADDITIONAL INFORMATION -- Document that contains updated or more
detailed information about a mutual fund and supplements the prospectus. It is
available at no charge upon request.
TOTAL RETURN -- A measure of a fund's performance encompassing all elements of
return. Reflects the change in share price over a given period and assumes all
distributions are taken in additional fund shares. The Average Annual Total
Return represents the average annual compounded rate of return for the periods
presented.
YIELD ON SECURITIES -- For bonds, the current yield is the coupon rate of
interest, divided by the purchase price. For stocks, the yield is measured by
dividing dividends paid by the market price of the stock.
- ----------
Adapted from the Investment Company Institute's 1997 Mutual Fund Fact Book.
-----
25
<PAGE>
- --------------------------------------------------------------------------------
FOR MORE INFORMATION
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) 445-1777 Retirement Plan Services
(212) 682-7600 Outside the Continental United States
(800) 622-4597 24-Hour Automated Telephone Access Service
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.
[LOGO]
EQCI2 12/97 Printed on Recycled Paper
