Philips Speech Processing, a unit of Royal Philips Electronics (PHG), unveiled a new version of its SpeechMike audio recording devices.
The main features include larger buttons for greater convenience, a laser sensor for cursor movements and an LED indicator to display the level of recording in different colors.
The new device can be fully integrated with Dragon NaturallySpeaking, the voice recognition solution from Nuance. SpeechMike will be available in two versions – push button or slide switch and will hit markets in September 2010.
The restructuring of Philips’ portfolio of products to better position itself as a more focused company in the healthcare, lighting and lifestyle markets is in progress with several focused acquisitions and divestments, which will bode well going forward.
Following the successful completion of the bulk of its capital reallocation program, including the acquisitions of Genlyte and Respironics, the company has fixed a target group-level EBITA of 10%–11% with average annual sales growth of 6% and above. The company has fixed the following as EBITA targets for individual sectors: Healthcare (15%–17%), Lighting (12%–14%) and Consumer Lifestyle (8%–10%). The company has reintroduced guidance on its target return on invested capital (ROIC) at 12%–13%.
The company’s continued ability to increase free cash flow by bringing down working capital has helped sustain investments in growth initiatives while maintaining a strong balance sheet.
Philips may be unable to adapt swiftly to industry or market circumstances, which could have a material impact on its financial condition. Acquisitions could expose the company to integration risks and pose a management challenge.
Philips’ global presence exposes the company to regional and local regulatory rules that may interfere with the realization of business opportunities and investments in the countries where it operates. Philips’ overall performance in the coming years depend on realizing its growth ambitions in emerging markets.
Headquartered in Amsterdam, The Netherlands, Koninklijke Philips Electronics N.V. is one of the world’s largest electronics companies and the biggest in Europe, with sales of €26.4 billion in 2008 and €23.2 billion in the full year 2009. The company is divided into five distinct business sectors: Healthcare, Consumer Lifestyle, Lighting, Innovative & Emerging Businesses (I&EB) and Philips Group Management & Services (GMS).
We currently have an Underperform recommendation on Philips.
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