Archived posting to the Leica Users Group, 1999/09/24

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Subject: Re: [Leica] What I'd like to see.
From: Larry Kopitnik <kopitnil@marketingcomm.com>
Date: Fri, 24 Sep 1999 22:01:06 -0500

>>>>>>>>>>
So?  What's the objective here?  Are we trying to turn Leica into a General
Electric?  As long as Leica is making money, does it have to make more and more
and get bigger and bigger?  Why can't it just continue as always, making a
modest but comfortable profit?
<<<<<<<<<<

That's the problem: They're not making a profit. Their first quarter
finaincial report (downlowadable from their web site as a pdf document)
says they lost over 3 million DM after taxes in their first fiscal quarter
this year. They still hope to break even for the year, which would be a
positive change compared to the last couple of years.

Assuming Leica eventually does turn a profit, as a publicly traded company
they then have an obligation to the owners of their stock to increase and
maximize those profits.

That said, the financial report also relates that sales of the M system are
up almost 25% compared to the same period a year ago. Reading between the
lines, the report seems to indicate that Leica is pinning this year's
financial hopes on continued success with the M system and a new, yet to be
released, point-and-shoot camera.

It's unlikely that the point-and-shoot will excite many participants of
this list. But by continuing to develop the M system, there's good reason
to believe that Leica can make both photographers and investors happy
people.

Larry