A stack of financial results

The flurry of quarterly results, including many surprises, dominated the international world of IT and telecommunications last week.

This week will see another flurry of overseas quarterly results.

Paul Booth, MD, Global Research Partners

At home, the woes of MMW and the Softline sell-off of SVI dominated much of the local headline space.

• we saw a full year loss from MMW (revenue significantly down);
• very good interim numbers from OAI (both revenue and income well up and margins very high);
• good maiden interims from Sempres International Technology (numbers well up on last year`s pro forma figures); and
• a profit warning from Set Point Technologies.

[Local]

Other local news included:

• the appointment of Jos Nickmans as the new MD of Hewlett-Packard SA;
• the formal inauguration in SA of Avaya, the former Enterprise Networks Group of Lucent Technology;
• the announcement that Datatec had won "The South African Global Company" award; and
• the news that Softline is to sell its stake in SVI, its US subsidiary.
• Additionally, Namibia has opened up its telecommunications with the launch of Tele2 Publicon, which will compete with Telecom Namibia. Tele2 Publicon is completely Namibian-owned.

• we saw the agreement by Nortel Networks to exchange its 81.25% in Arris Interactive for $325 million in cash and a 46.5% interest in Arris, which would absorb both Arris Interactive and Antec.
• Xerox has suffered even more set-backs with its share price dropping some 50% over the past few weeks, following concerns raised over its continued liquidity, the significant cut in its dividend and the selling-off of some of its investments. The market capitalisation has fallen to only $4.5 billion, but even at this level it seems that nobody is interested in acquiring the firm at the moment since the effort involved in turning the company around is likely to involve much blood-letting, including the retrenchment of significant numbers of employees. Xerox is likely to have its ratings cut, which will do very little for its share price, and is even considering putting its pride and joy, the Palo Alto Research Centre, on the market. However, one glimmer of good news is that GE Capital might be interested in Xerox`s financing unit.

[International]

Other international news included:

• the appointments of Jan Fineman as CEO of Xaar, Darrell Jennings as president and CEO of Computer Task Group, and Colin Tucker as MD of Hutchison 3G UK;
• the resignations of Rod Schrock, CEO of Alta Vista, and Graham Wylie, CEO of Xaar; and
• job cut announcements from Epic Data, Geac, Nashua and Red Herring Comms.

We saw excellent figures from All American Semiconductor, Alliance Semiconductor, Alpha Industries, Anaren, Asyst Technologies (back in the black), Atmel, Avanex (back in the black), Bell Microproducts, Broadcom, Celeritek, Celestica, Cerprobe, Chartered Semiconductor (back in the black), Check Point Software, Cognex, Cognizant Technology, Cypress Semiconductor, Diamond Technology Partners, DMC Stratex, Elantec Semiconductor, Emulex, Exar, Extreme Networks, Flextronics International, Foundry Networks, Helix Technology, Internet Security Systems, Janna Systems, Jaco Electronics, Linear Technology, Macromedia, McData, Mercury Interactive, MetaSolv Software, Micrel, MKS Instruments, Novellus, Pericom Semiconductor, Polycom, Qlogic, RADVision (back in the black), Rambus, Rohn Industries, Royal Philips Electronics NV, SanDisk, Scientific Atlanta, Sipex, Software.com (back in the black), ST Assembly Test Services, STMicroelectronics, Sun Microsystems, Sunrise Telecom, Taiwan Semiconductor, Tellabs, Teradyne, Triquint Semiconductor, Turnstone Systems, Vitesse Semiconductor, WebTrends and Xilinx.

Losses came from ActionPoint, Advanced Switching Comms, Akamai Technologies, Allegiance Telecom, AMS, Applied Microsystems, Applix, Ariba, Artisoft, Auspex, Avici, Avid Technology, Blue Martini Software, BroadVision, Broadwing, C-Phone, Centillium Comms, Centura Software, CIDCO, click2learn.com, Cobalt Networks, Cognigen Networks, Com21, Commerce One, Conexant, Copper Mountain Networks, Cornerstone Internet Solutions, Covad Comms, Critical Path, CrossWorlds Software, CT Holdings, CTG, CyberSource, Cylink, DataWorld Solutions, Digimarc, Digital Impact, Digital Lightwave, Digital River, DigitalThink, E.piphany, EarthWeb, ECCS, Efficient Networks, eGain Comms Group, Encad, Entrust Technologies, Equinix, ESPS, Evolve, Exabyte, eXcelon, Exodus Comms, Extensity, Ezenia!, Fibernet, Fourth Shift, Giga Information Group, Handspring, Harmonic, HearMe, HNC Software, HTE, i2 Technologies, I-Link, iBasis, IdeaMall, IDX Systems, iManage, Informatica, Information Resources, Informix, Intevac, iPrint, JetMultiMedia, Kana Comms, Komag, Larscom, Level 3 Comms, Made2Manage, MathSoft, MAI Systems, Marimba, McAfee.com, Mediware, Mercator Software, Metricom, Microforum, Microwave Power Devices, MTI Technology, Neoware, net.com, NetIQ, Network Access Solutions, New Era of Networks, Next Level Comms, Open Market, Optika, Opus360, Orckit Comms, Parthus Technologies, Pervasive Software, Phone.com, Pinnacle Systems, Primix Solutions, Primus, Proxicom, Proxim, Quintus, Retek, Rogers AT&T Wireless, Rogue Wave Software, Sage, Scient (back in the black), SCM Microsystems, SDL, Secure Computing, Selectica, SpeechWorks International, Telemate.Net Software, Telocity, Terayon Comms, Trimble, Tumbleweed Comms, Unicomp, VINA Technologies, Visual Networks, Vyyo, WebEx Comms, Westell Technologies and XtraNet.

Good numbers were recorded by 3D Systems (back in the black), Accrue Software (back in the black), Advent Software, AOL, Apple, Arrow Electronics, ATMI, Business Objects, Cadence Design Systems (back in the black), California Micro devices (back in the black), CyberOptics, Documentum (back in the black), EMC, Ericsson, ESS Technology, Gentner Comms, Helix, IDT, II-VI, IMS, Intel, inTest, Iona Technologies, IRE (back in the black), IXYS, JDA Software, Lattice Technologies (back in the black), Lightbridge, Network Associates, Nokia, Parametric Technology, Predictive Systems (back in the black), RealNetworks, ON Semiconductor, OSI (back in the black), OTG Software, Overland Data, PC Connection, PeopleSoft (back in the black), Phoenix Technologies (back in the black), Pixelworks (back in the black), Plantronics, PLX Technology, RadiSys, Rainmaker, RF Micro Devices, SAP, SBS Technologies, Somera Comms, SonicWALL, SpectraLink, SunGard Data Systems, Symantec, Symbol Technologies, TDS, Tekelec, TelCom Semiconductor, Texas Instruments, WatchGuard Technologies, Xicor and Zoran.

Satisfactory figures came from Adaptec, Artesyn Technologies, Bell & Howell, Bell South, Boston Comms Group (back in the black), C-COR.net, CACI, Ceridian, Corsair Comms, DST Systems, Eastman Kodak, Embercadero Technologies, Equifax, IBM, Microsoft, Nortech Systems (back in the black), Rogers, Silicon Labs, Sprint, Sybase, Western Multiplex, Xircom and Zebra Technologies.

Mediocre returns came from ACNielsen, Antec, AVT, Beyond.com (back in the black), Carrier Access, Cirrus Logic, Citrix Systems, Compuware, Datalink, Deltek, Electronics For Imaging, Genesis Microchip, Inet Technologies, Mercury Computer Systems, MMC Networks, Moffat Comms, NCR, NetSolve, Pitney Bowes, Power Integrations, PrimeSource, Rogers Comms, Sento (but back in the black and revenue well up), Syntellect, Systems Xcellence, TelCom Semiconductor, Timberline Software and Zomax.

Very poor results came from Aspect Comms (but back in the black - just), Butler International, Concord Comms, Evans & Sutherland, Giga-tronics, Interphase, Lattitude Comms, Saga Systems, TMSSequoia and Vitria Technology (but back in the black).

Other financial news included profit warnings from Epic Data, Ericsson, FVC.COM, IKON Office Solutions, Mitek, Nashua and Texas Instruments.

There were share split announcements from DST Systems, E.piphany and i2 Technologies; an excellent IPO from Ixia Comms (networking); and a satisfactory IPO from Endwave (wireless equipment).

Additionally, Verizon, the largest US mobile operator, has delayed its IPO following the slump in wireless telecommunications stocks. Other postponed IPOs include Idealab (an Internet incubator), Primis (B2B) and MCE Companies (wireless technology).

Locally

CIH (+100%)
Core (-28%)
Dectronic (+55.6%)
Digicore (+22.2%)
Explorer (-22.2%)
I-Solution (-25%)
Micrologix (-25%)
MMW (-46.2%)
Smacsoft (-29.2%)
Softline (-32.3%)
Zaptronix (-22.7%)

Internationally

Convergent Comms (+41.7%)
Copper Mountain Networks (-65.3%)
Covad Comms (-45.9%)
Inet (+49.7%)
Information Resource Engineering (+42.1%)
Mercator Software (-62.9%)
SCI Systems (+40.8%)
Terayon Comms systems (-42.6%)
Westell Technologies (-49.5%)

This week will see another flurry of overseas quarterly results, including those from AT&T, Compaq, EDS, Lucent Technologies, Nortel Networks and Xerox. The locally listed MB Technologies will today announce its finals for the 1999/2000 year.