A busy week for IT, telecoms

Yahoo`s acquisition of Overture Services, NEC Electronics` IPO and the closure of the PeopleSoft/JD Edwards merger dominated the international world of IT and telecommunications last week.

The lack of news re the proposed buy-out of Softline didn`t stop one of the bidders, Sage Group, from pursuing other interests.

Paul Booth, MD, Global Research Partners

At home, the convergence colloquium, UCS`s acquisition of Affinity Logic and shareholders` approval of the AST rights issue stole much of the local headline ICT space.

We saw profit warnings from Global Technology and Reunert.

Other local news included shareholders` approval of AST`s rights issue.

The lack of news re the proposed buy-out of Softline didn`t stop one of the bidders, Sage Group, from pursuing other interests. As I mentioned previously, the company has been on a buying spree for the last few years and last week swallowed up US-based Timberline Software, a provider of accounting and cost-estimation software for construction and real estate companies.

* we saw the name changes of Flexxtech to Network Installation, Merkantildata ASA to Ementor ASA and SVI Solutions to Island Pacific;

* Verizon Comms sold off its 10% stake in Thailand`s TelecomAsia; and

* the closure of the PeopleSoft/JD Edwards merger, which has created the second largest enterprise application software company.

Additionally, look out for possible take-overs of OutlookSoft and Project Telecom; and the possible IPO of Belgian telecomms carrier, Belgacom.

Other international news included:

* the appointments of Rick Belluzzo as chairman of Quantum, Bill Gerety as CEO of Spacenet, Jackson Hu as CEO of UMC and Charles Jones as CEO and president of Geac;

* the resignation of Paul Birch as president and CEO of Geac; and

* job loss announcements from Anite, ASML, Cadence Design Systems and Cap Gemini Ernst & Young.

We saw excellent* figures from Lexar Media, SanDisk and Yahoo Japan; and very good* numbers from Packeteer, Smith Micro (back in the black), Stratos Global, SupportSoft (back in the black), UTStarcom and WebEx Comms.

Good figures* were recorded by Alliance Data Systems, Avocent, Boston Comms Group, Digital River (back in the black), Excel Technology, First Data, Global Payments, IBM, iManage, Ixia, Microsoft, MIND CTI (back in the black), MRO Software (back in the black), Network Equipment Technologies, NVE, Plantronics, QLogic, Rogers Comms (back in the black), Rogers Wireless, RSA Security (back in the black), SCT, Secure Computing (back in the black), Shenandoah Telecomms (back in the black), Sierra Wireless (back in the black), SigmaTron International, SpectraLink and Syntel.

Satisfactory* results were posted by Accenture, Adtran, Amphenol, Avid Technology, Cass Information Systems, CDW, Ceridian, Concerto Software, Concord Comms, Cypress Semiconductor (back in the black), Digi International (back in the black), DigitalNet, EMC, Exar, Informatica, infoUSA, Intel, Internet Security Systems, Made2Manage, Microchip Technology, PanAmSat, PeopleSoft, Pervasive Software, Planar, Renaissance Learning, Scientific-Atlanta (back in the black), Seagate Technology, SS&C Technologies, Telenetics, TSYS, Unisys, US Dataworks, UTC, Wipro and Xilinx.

Mediocre* returns came from Apple, Applied Innovation, Aspect Comms (but back in the black), Barra, CanWest, Cerner, Creative Computer Applications, CTG, Equifax, Hy-Tech Technology, ITG, Mercury Interactive, Iomega, Monolithic System Technology, Motorola (but back in the black), Nassda, Network Associates, Nextel Comms, Nokia, Philippine Long Distance Telephone, Philips Electronics NV (but back in the black), RadiSys, RadVision, Rambus, Rogers, Samsung Electronics, SAP (but back in the black), Supertex, Tollgrade Comms and Transcend.

Very poor results* were posted by Documentum, Insignia Systems and Rogue Wave Software.

Losses* were reported by 3D Systems, Allscripts, AMD, AMS, Anite, Applied Micro Circuits, ASML, Atari, Atmel, Broadview Media, Brooktrout, Cadence Design Systems, CellStar, Chartered Semiconductor, CyberSource, Datalink, DigitalThink, Echelon, Electronic Tele-Comms, Ementor ASA, Epic Data, Ericsson, Evans & Sutherland, Extreme Networks, Fairchild Semiconductor, Harmonic, HEI, Hifn, Integrated Device Technology, Interphase, Iona Technologies, Latitude Comms, Lone Star Technologies, M-Systems, NetScout Systems, NMS Comms, Optika, Pace Micro, Paradyne Networks, Phoenix Technologies, Photon Dynamics, Pixelworks, PLX Technology, PMC-Sierra, ProMOS Technologies, PTC, Redback Networks, RF Micro Devices, SonicWALL, Sony Ericsson Mobile Comms AB, SpeechWorks, Teradyne, Traffix, Transmeta, TranSwitch, Vicor, Visual Networks and Xplore Technologies.

Other financial news included results/profit warnings (often veiled) from Digital Recorders, Ikon Office Solutions, Lucent Technologies, Marconi, Misys, Nokia and Philips Electronics; a share split announcement from Comtech Telecomms (3 for 2); a good IPO ($1.3 billion) from NEC Electronics on the Tokyo Stock Exchange; and a very good IPO from InterVideo.

Additionally, Microsoft is to re-state its income for 2002 and 2003 in order to reflect the changes re employee stock options; and Com21 and Loral have applied for reorganisations under Chapter 11 filings.

Locally

CCG (+100%)
Control (+10.7%)
Global Technology (+20%)
Idion (+11.7%)
Infowave (-16.7%)
MGX (+62.5%)
Pinnacle (+21.4%)
Spescom (-9.4%)
Trematon (+33.3%)
Y3K (+100%)

Internationally

Adept Technology (-32.9%)
Aspect Comms (+30%)
Bell Microproducts (+35.9%)
Butler International (+40.9%)
Com21 (-77.8%)
DA Consulting Group (-33.3%)
IQE (+31.3%)
Level 8 Systems (+36%)
Mercator Software (+31.6%)
NTELOS (+50%)

In terms of indices, Nasdaq was down 1.5% and the JSE down 0.8% for the week.

This week sees Fortune magazine printing its 2003 Global 500 ratings. From a technology perspective the highest company rankings came from NTT at number 16, IBM at 19 and Siemens at 22. AT&T Wireless was one of the newcomers at 312, while the list lost Compaq, Oracle and WorldCom.

* NB

Guidelines for the categorisation of results are as follows. The figures are always in comparison with the equivalent period for the previous year; pro forma numbers are ignored (the terminology may vary slightly from country to country).

* Excellent: Both revenue and net income growth are in excess of 50%.

* Good: Both revenue and net income growth are in excess of 10%.

* Satisfactory: Revenue is within 10% of previous year and net income is up.

* Mediocre: Either revenue and/or net income is down.

* Very poor: Net income is less than 1% of revenue.

* Loss: A loss has been recorded.