A global acquisition spree

The acquisition spree by Alcatel and the announcement of the proposed split-up of Hewlett-Packard was top news in the international IT world last week. Two other deals that shouldn`t be overlooked are the merger of AT&T Canada and Metronet Communications, valued at $7 billion, to create Canada`s premier telecommunications company; and the $2.2 billion acquisition of Level One Communications by Intel.

At home, the flurry of local financial results continued.

• the re-launch of Plessey as a joint venture between Dimension Data and Worldwide Africa Investments;
• excellent year-end figures from the Advtech group;
• excellent interim results from Faritec Holdings (maiden numbers) and Ixchange;
• good results from Mustek; and
• satisfactory interim numbers from Control Instruments Group, Kunene Technology, Rectron Holdings (maiden report) and Unihold.

[Local]

Local Cautionary Notices (see attachment)

Other local news included the announcement that Datatec Westcon, the networking distribution arm of Datatec, will become an operating company within the Weston group of companies based in the US. Additionally, Hix Technologies published its listing prospectus, and investment software developer, Smacsoft, announced it will list on 24 March in the development capital sector of the JSE.

• the announcement of the proposed break-up of Hewlett-Packard into two separate companies, with the test and measurement, components, chemical-analysis and medical businesses leaving the fold and operating under a new, but still to be decided, name;
• the announcement from Groupe Bull that it will shed some 1 800 employees from around the world;
• the news that the president of SAP`s US subsidiary has resigned and joined Siebel; and
• Lucent Technologies is still looking for a buyer for its Inferno distributed real-time operating system technology.

[International]

We saw excellent figures from Druid Group, GFI Informatique SA, Infowave Software, Parity Group and Sherwood International.

Losses were reported by Activcard SA, Advanced Radio Telecom, ASM International, Baan (much larger than expected), BTI Telecom, Covad Comms, Cylink (greater than expected), Effective Management Systems, GST Telecomms, Information Analysis, Metrowerks, Mortice Kern Systems, MGC Comms, Stordata Solutions, Teligent, Telemetrix and Viatel.

Good numbers were recorded by Comtech Telecomms, Flomerics Group, Getronics NV, Information Advantage, ITnet, National Computer Systems, Perot Systems (back in the black) and Psion.

Cap Gemini SA, IDT and Volt Information Sciences reported satisfactory numbers.

Mediocre returns came from Boundless, Expert Software and Manchester Equipment (just in the black). Very poor results came from Memotec Comms.

Other financial news included profit warnings from 3Com, Computerland, CompUSA, Fujitsu (55% below forecast), IDX Systems, Network Equipment Technologies and Topcall International AG. Share split announcements came from Citrix Systems, Comcast, Micron Electronics, Quantum and RF Micro. There was also the debut of the world`s largest computer terminal maker, Wyse Technology, on the Taiwanese Stock Exchange.

Locally

Casey Holdings (-20.5%)
Healthtec (+21.7%)
Idion (+25%)
JemTech (-21.1%)
MB Technologies (+71.3%)
Selective Financial Group (-31.7%)
Telemetrix (+25%)

Internationally

3Com (-21.7%)
Alcatel (+21.6%)
Ardent (-18.8%)
Asyst (-19.2%)
Baan (-19.9%)
CMGI (+24.1%)
CNET (+46.6%)
Digital River (-19.2%)
QAD (-23.5%)
Tadpole Technology (+62.5%)
Telemetrix (+18.8%)

The media continues to focus on year 2000 issues, but there seems to be little said about the plethora of Cobol programs that are still in use and the looming problems associated with the 9 September 1999 date. I wonder how prepared business is to address an issue that could be as serious as the Y2K situation?