A two-week financial fix

Several significant acquisitions, including that of ONI Systems by Ciena, and the continuing saga re Microsoft and the Department of Justice dominated the international world of IT and telecommunications during the last two weeks.

Fortune Magazine`s annual Most Admired Companies list features Microsoft at number three on the 2002 All-Stars list.

Paul Booth, MD, Global Research Partners

At home, the closure of EasyInfo`s controversial directory and the spate of local results stole much of the local headline space.

• we saw good year-end figures from Storm (but no earnings figures available);

• satisfactory full-year results from EC-Hold (revenue double and a small profit; last year showed a loss);

• a massive full-year loss from Idion that was bigger than the revenue figure (and revenue up from last year);

• a full-year loss from Vesta Technology Holdings;

• good interim numbers from Faritec (revenue up and earnings well up), Integrear (measured against restated figures for 2000) and Pinnacle Technology (revenue down but earnings well up);

• satisfactory half-year figures from Grintek (revenue slightly down but earnings up a little) and KTL (revenue just down but earnings well up);

• mediocre six-month numbers from AST (revenue well up but earnings down) and MGX (revenue well up but earnings down);

• a half-year loss from I-Fusion (now part of Bidvest; revenue also down); and

• a significant interim loss from FrontRange. Additionally, the shares of C-Tech and Dynamic Cables were suspended; and Idion and Spescom issued half-year profit warnings.

[Local]

Other local news included:

• the cessation of the operations of Exceptional Business Systems, the only operating company of C-Tech;

• the resignations of EB Levenstein, chairman of UCS Group, and BF van Niekerk as chairman of Integrear;

• the closure of EasyInfo`s directory following an out-of-court settlement with Telkom;

• the re-emergence of Intelligent Systems following a management buy-out from the Siltek liquidators;

• the appointments of Richard Goodman as chairman of UCS Group and Antonie Roux as CEO of MIH`s Internet operations;

• the opening of AspenTech Africa; and

• the opening of local offices by InterSystems and Mitel Networks.

• we saw the announcement of a major re-organisation at Invensys;

• the news that NEC is likely to move much of its manufacturing to China;

• the restructuring of CommNet Wireless into two separate companies; and

• the announcement from Microsoft that it intends moving into the niche software market.

Additionally, look out for the fall-out from a break-up of the link between France Telecom and MobilCom; the repercussions from the federal judge ruling that Microsoft should allow the nine states contesting the Microsoft/DOJ settlement access to its Windows source code; and the outcome of an unsolicited bid by German VC company Balaton AG for German data centre automation software vendor Beta Systems Software AG.

[International]

Other international news included:

• the

  appointments

  of James Atkinson as chairman of World Internet Technologies, Michael Cote as president and CEO of SecureWorks, Alistair Crawford as CEO of CMG, Paul Hermelin CEO of Cap Gemini Ernst & Young, Bruce Leader as CEO of Powertech Group, Ian McKinnon as CEO of Certicom, George McMillan as CEO of CMGI, Manuel Pietra as president and co-CEO of Descartes Systems Group, David Rowe as CEO of EasyNet, Kathy Snouffer as president and CEO of XIOtech, Brent Welch as CEO of FutureCall and Glenn Wienkoop as president and COO of Portal Software;

• the

  resignations

  of Alain Coulder, COO of Agilent Technologies, Stewart Nelson, COO of Novell, Neil Rafferty, CEO of EasyNet, Tom Rusting, CEO of CMG, and David Wetherell, CEO of CMGI; and

• job loss announcements

  from AT&T Broadband, Colt Telecom, Convera, Edgewater Technology, Hitachi, Matsushita Electric, Net2Phone, Pumatech, RiverSoft, Riverstone Networks, Sapient, Sony and Westell Technologies.

We saw excellent figures from InfoNow (back in the black), SkillSoft (back in the black) and Wavecom (back in the black).

Good numbers were recorded by Alliance Atlantis Comms, Applied Imaging (back in the black), Capita group, Dicom Group, Docucorp, Epiq Systems, Factual Data (back in the black), Fincentric, Focal Comms (back in the black), FutureOne (back in the black), Logica, Merge Technologies (back in the black), Navision A/S, NZ Telecom, OmniVision Technologies (back in the black), OPTi, Pegasystems, Synaptics (back in the black), Synopsys, Tele2 AB (back in the black), Telefonica Moviles and Transware.

Satisfactory figures were posted by Anacomp (back in the black), CS Comms & Systems, Fargo Electronics, Hector Comms, Logica, Logility (back in the black), Novell (back in the black), Rainbow Technologies, Software Spectrum, SPSS and Tangram.

Mediocre returns came from American Software (but back in the black), AMS, Ansoft, ARI Network Services, Arrow Electronics, AutoDesk, Cap Gemini Ernst & Young, Catalyst Semiconductor, Cesky Telecom, CNT, Comms Systems, Dycom, GTSI, Hellenic Telecomms Organization SA, I/NET (back in the black), Information Holdings, LanOptics (back in the black), Lorien (back in the black), Macrovision, Marlborough Stirling, Methode Electronics, Radyne ComStream, SCB Computer Technology, SemTech, Serena Software, Syntel, SYS, TACT (back in the black), TDC, Telefonica, Telewest, TMNG, Unify, Valassis and XETA Technologies.

Very poor results were posted by Castelle, Cimatron, DataWave (back in the black), Evans & Sutherland (back in the black), IMP (back in the black), Metrologic Instruments and Presstek.

Lossescame from Accelio, ACT Teleconferencing, Advanced Switching, Aegis Comms, Agilent Technologies, Alamosa, Allegiance Telekom, Alterian, Analysts International, AOL Latin America, Aptimus, ARC International, ASAT Holdings, AT&T Latin America, AU-System AB, Axeda Systems, Barak, BEA Systems, Bitstream, Bogen, Canterbury Consulting, Catalyst International, CDT, Cell-Loc, CellStar, CenterSpan Comms, Certicom, Channell, Ciena, Clear Channel Comms, CMG, CNT, COM DEV, Compel Group, Commtouch Software, Conductus, Copper Mountain Networks, Credence Systems, Crossroads Systems, CSI Wireless, CT Comms, DAOU Systems, Data I/O, Datalex, Dataram, Descartes Systems Group, Dialog Semiconductor, Dimension AB, Ditech Comms, EasyNet, EchoStar Comms, Eltek, eMerge Interactive, enherent, eOn Comms, Fiberstars, Formula Systems, GraphOn, GSI Lumonics, Helix Technology, Horizon PCS, Hybrid Networks, Hytek Microsystems, I-Many, Ibis Technology, IFX, IIS, Innovation Group, Integrated Information Systems, InteliData, Inter-Tel, InterCept, IP Applications, J2 Global Comms, JD Edwards, Leitch Technology, Lexant, Loudcloud, Marvell Technology Group, MasTec, Matsushita Electric, MCSi, MCT, Mediacom Comms, Meta Group, Meta4 NV, Micro General, Mobility Electronics, Morse Group, MTI, Net Nanny, Netia Holdings SA, Nanophase Technologies, NeoMagic, Neon Comms, Nera ASA, Net2Phone, NetSol International, New Horizons, NexPrise, Nextel, Niku, o2wireless Solutions, On2 Technologies, Orchestream, Paxson Comms, PCD, Pegasus Comms, PerfectData, Perficient, Pinnacle Holdings, Plaintree Systems, Plato Learning, Portal Software, Printware, Procom Technology, Prosoft Training, Pumatech, Quovadx, RCM Technologies, Real Software BV, RiverSoft, Rogers Comms, Rogers Wireless, Rohn Industries, Safeguard Scientifics, SBA Comms, Scan-Optics, Scient, SCM Microsystems, SmartDisk, Spirent, SRS Labs, Staffware, Stratos Lightwave, Superior Consultants Holding, Superconductor Technologies, SVI, Sylvan Learning Systems, T/R Systems, Telindus BV, Touch America, TransAct Technologies, Transcrypt International, Trintech Group Plc., Triton PCS, Troy Group, Tundra Semiconductor, UBICS, UbiquiTel, US LEC, UTG Comms International, VA Software, Vasco Data Security International, Veramark, Versant, Versata, Versatile Mobile, Vertex Interactive, Vicinity, VSI Holdings, Wanadoo, Wind River Systems, Winland Electronics, WorldGate comms, WorldQuest Networks, Xybernaut and Z-Tel Technologies.

Other financial news included share buy-back announcements from Lexmark, Matsushita Electric, Sunrise Telecom and TeleTech Holdings; profit warnings from AT&T, BEA Systems, BellSouth, Cable & Wireless, Cap Gemini Ernst & Young, Chartered Semiconductor, Ciena, Clear Channel Comms, CMG, Flextronics, Gateway, Global Crossing, Hitachi, Japan Telecom, Logica, Mitsubishi Electric, Novell, Oracle, Orchestream, Riverstone Networks, Sapient, ServicePower Technologies, StorageTek and Sunrise Telecom.

There were share split announcements from CellStar, Franklin Electric and VOIP Telecom; and a satisfactory IPO from NT&T DoCoMo on both the LSE and the NYSE. Additionally, Computer Associates has become the subject of a federal inquiry re its accounting practices; Take-Two is to re-state much of its 2001 results; and Mpower and Williams Comms are considering filing for Chapter 11.

Locally

CSH (-20%)
Dectronic (+33.3%)
E-Data (+50%)Explorer (+33.3%)
FrontRange (-21.4%)
Hicor (-25%)
Idion (+42.9%)
MGX (-21.1%)
Micrologix (+20%)
OSI (-47.1%)

Internationally

Arch Wireless (+63.7%)
CTC Comms (+45.3%)
Energis (-72.7%)
Genesis Microchip (-43%)
Jupiter Media Metrix (-75.3%)
NTL (-47.1%)
Robocom Systems International (+50%)
Riverstone Networks (-46.9%)
Rural Cellular (-48.9%)
Williams Comms (-79.7%)

Fortune Magazine has announced its annual Most Admired Companies list. The 2002 All-Stars list included Microsoft at number three, Intel at nine, Cisco at 10, and nine other technology companies in the top 50.