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RadioShack goes off air

After 94 years in business, the tech company has filed for chapter 11 bankruptcy protection.

Paul Booth
By Paul Booth
Johannesburg, 09 Feb 2015

RadioShack's bankruptcy application and Verizon's $15 billion+ disposals were the main events in the international ICT market last week.

At home, Net 1's announcement of a new UK subsidiary and speculation of the government's sell-off of its Vodacom stake were the key local stories.

Key local news

* Good Q2 numbers from Net 1 UEPS Technologies, with revenue up 12% and profit up 43%.
* A positive trading update from Silverbridge Holdings.
* Negative trading updates from Jasco and Vodacom.
* C5 Holdings (UK) made a R20 million investment in Parcelninja, an e-commerce start-up.
* IBM said a new research lab based in Johannesburg will be opened in April.
* Net 1 UEPS Technologies is establishing a UK subsidiary, Zazoo, to oversee the global expansion of its mobile payments and value-added services businesses.
* Guy Whitcroft resigned from IT4Africa.

Key African news

* A quarterly loss from Bharti Africa (revenue also down).
* Botswana's government said Botswana Telecom will be privatised by July. The IPO was originally planned for December 2014.
* IBM launched its MEA Digital Sales Centre in Cairo.
* Tactile Technologies has opened a sister company, Newland ID South Africa, which is part of Newland EMEA (Newland Europe), which, in turn, is a full subsidiary of Fujian Newland Computer Company (China).
* Wambui Kinya has been named head of African operations for ThoughtWorks, based in Nairobi.

Key international news

Look out for the possible sale by government of its 13.9% stake in Vodacom.

* Ansys acquired the assets of Numerical Technologies International, a developer of simulation software and services.
* Arrow Electronics bought RDC, a subsidiary of Computacenter UK.
* Brocade purchased Riverbed Technology's SteelApp product line.
* Columbus Nova, an investment management firm, acquired Sony's online gaming unit.
* Ericsson bought the playout business of UAE content creation zone, twofour54.
* Esker purchased TermSync, a cloud-based accounts receivable platform.
* Harris acquired Excelis, the ex-defence business of ITT, for $4.75 billion.
* Insight Venture Partners bought E2open, a maker of cloud-based software for supply chain management, for $273 million.
* Intel purchased Lantiq, a German maker of communications chips.
* Newport acquired Austria-based Femtolasers, a developer and manufacture of ultrafast laser systems.
* Synchronoss Technologies bought personal cloud assets from F-Secure, a global online security and privacy company, for $60 million.
* Symantec has been ordered to pay $17 million for patent infringement of two patents owned by Intellectual Ventures.
* Verizon Communications will sell wire-line assets to Frontline Communications for $10.54 billion and lease its cellphone towers to American Towers in a deal worth about $5 billion.
* Yahoo will spin off its Small Business unit with its Alibaba stake.
* RadioShack has filed for chapter 11 bankruptcy protection.
* Excellent quarterly results from Tableau Software and Yelp (back in the black).
* Very good quarterly figures from Alliance Data, GoPro and Pandora Media.
* Good quarterly numbers from Cadence Design Systems, Cognizant Technology Solutions, ePlus, IDG, Manhattan Associates, Nice Systems and Ultimate Software.
* Satisfactory quarterly results from Advent Software, Bharti Airtel, Bharti Infratel, FIS, Fiserv, Level 3 Communications, Sony, Take-Two Interactive Software, TalkTalk and Vodafone.
* Mediocre quarterly results from Acxiom, Pitney Bowes, Symantec and Zain.
* Mixed quarterly figures from ADP, with revenue up but profit down; Alcatel-Lucent, with revenue down but profit up; Anixter International, with revenue up but profit down; Arrow Electronics, with revenue up but profit down; Belden, with revenue up but profit down; CDK Global, with revenue up but profit down; Ciber, with revenue down but profit up; FEI, with revenue up but profit down; Gartner, with revenue up but profit down; Genpact, with revenue up but profit down; Harris, with revenue down but profit up; Harte-Hanks, with revenue down but profit up; Lenovo, with revenue up but profit down; LinkedIn, with revenue up but profit down; Motorola Solutions, with revenue up but profit down; Synchronoss Technologies, with revenue up but profit down; Teradata, with revenue up but profit down; VeriSign, with revenue up but profit down; and Vishay Intertechnology, with revenue up but profit down.
* Quarterly losses from Atmel, Brooks Automation, Imperva, Interactive Intelligence, Mobily, Netgear, Nuance Communications, Sharp, Sprint, Stratasys and Twitter.
* The resignation of Sureyya Ciliv, CEO of Turkcell, the organisation that was suing MTN over licences in Iran.
* An IPO filing for the NYSE from MaxPoint Interactive, a provider of BI and marketing automation software services.
* A good IPO in Switzerland by Sunrise, a Swiss mobile operator.

Research results and predictions

* Worldwide tablet shipments declined 3.2% in Q4 2014 to 76.1 million units, with Lenovo gaining the number three slot behind Apple and Samsung.

Stock market changes

* JSE All share index: Up 1.4%
* Nasdaq: Up 2.4%
* NYSE (Dow): Up 3.8%
* S&P 500: Up 3%
* FTSE100: Up 1.5%
* Nikkei225: Down 0.1%
* Hang Seng: Down 0.7%
* Shanghai: Down 4.2%
* Top SA share movements: CompuClearing (+8.5%), Ellies (-7.1%), Jasco (-22.1%), Silverbridge Holdings (+11%), Telemasters (-20.9%) and Telkom SA (+12.5%)

Look out for

International:
* The possible sale of Motorola Solutions.

South Africa:
* The possible sale by government of its 13.9% stake in Vodacom.
* The sell-off by Telkom SA of its cellphone network towers.
* A possible further interest in Telkom SA by MTN, over and above the latter's proposed take-over of Telkom's radio access network.

Final word

The Africa Report Top 500 Companies in Africa listing has just been published. The following are some of the rankings/changes of technology companies on the continent. As previously, there are no IT companies included from any other country apart from SA.

In the top 25 are:
* 6: MTN (was number four)
* 12: Vodacom Group (was number 11)
* 19: Naspers (was 20)
* 22: Vodacom SA (was 14)
* 23: Datatec (was 29)

Other major movements include:
* 64: Mobinil (Egypt), up from 97
* 95: Safaricom (Kenya), up from 110
* 141: Reunert, down from 114
* 157: Wataniya Telecom Algerie, up from 175
* 170: Tunisie Telecom, a new entry
* 201: ATS Mobilis (Algeria), a new entry
* 233: Pinnacle Holdings, down from 204
* 253: BCX, down from 205
* 256: Bytes Technology Group, down from 174
* 324: Orascom Telecom Media and Technologies (Egypt), up from 352
* 341: Mustek, down from 315
* 477: Moov C^ote d'Ivoire, a new entry

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