A two-week IT wrap-up

The continuing quarterly losses and the possible Alcatel/Lucent merger dominated the international world of IT and telecommunications during the past two weeks.

[VIDEO]At home, the Dimension Data acquisition of Proxicom and the M-Web/Absa row stole the local headlines.

• we saw good year-end numbers from Altron (although margins squeezed);
• disappointing full-year numbers from Power Technologies (revenue up but income down);
• a full-year loss from Bytes Technology Group (revenue also proportionally down) and Contlan Holdings (revenue also well down);
• good half-year results from Paracon Holdings (revenue well up) and Spescom (revenue well up and back in the black);
• disappointing interims from Reunert (revenue up but earnings down);
• mediocre interim figures from UCS (revenue up but earnings down);
• a half-year loss from Dimension Data (but revenue up 50%); and
• the sell-off of Y2KTec to Nomalanga Trading Enterprises for R500 000.

[Local]

Other local news included:

• the successful bid by Dimension Data to acquire Proxicom with a substantially higher offer than that of Compaq;
• the appointments of Brett Casey as CEO of Elexir Technology Holdings, Elvin de Kock as CEO of ICL Africa, and Aletha Ling as an executive director of MGX;
• the resignation of Renny Plit, MD of Advtech;
• the formal opening of a SA office by E3, originally a divisional spin-off from IBM;
• the repositioning of Oxbridge Online to become a subsidiary of JSE-listed Igaming; and
• the awarding of First Tuesday`s Grand Prix award to Fundamo.

• we saw a strong indication from Lou Gerstner, CEO of IBM, that Sam Palmisano is likely to be his successor; and
• the announcement from Nortel Networks that its CEO John Roth will retire next year.

Additionally, look out for Flextronics as the likely purchaser of two Lucent manufacturing plants; the take-over of Australia`s Mobile Comms Holdings by Vodafone; and the possible formation of a $7 billion services company created from BT`s broadband network arm, AT&T`s business services division and their joint venture company, Concert.

This week sees Computer Faire 2001 opening on Tuesday in Midrand.

Paul Booth, MD, Global Research Partners

Also watch out for the outcome of the discussions between Alcatel and Lucent; and the possible merger of Anite with another UK-based company. Additionally, US-based Roku Technologies and Rural Cellular are seeking buyers.

[International]

Other international news included:

• the appointments of Michael Gelmon as CEO of Banyan, Donald Perkins as chairman of Luminant Worldwide, John Pilitsis as CEO of CyOptics, and Rob Unger as CEO of Agilera;
• the resignations of Alan Harrold, FD of Redstone Telecom, James Metcalfe, CEO of Mediasurface, David Murphy, president of Tivoli Systems, and Madan Singh, CEO of Knowledge Support Systems Group; and
• job loss announcements from 3Com, Agilera, Baltimore Technologies, Caldera Systems, Chinadotcom, Comdisco, Commerce One, Corvis, Dell, Exodus Comms, F-Secure, Hyperion Solutions, InteliData Technologies, iXL Enterprises, Mpower, National Semiconductor, Network Access Solutions, NT&T, Portal Software, Siemens, Silicon Valley Group, Terra Lycos and XETA Technologies.

We saw excellent figures from BEA Systems (back in the black), Camtek, Cirrus Logic, Emcore (back in the black), FiberCore (back in the black), Innodata, Mitel, Qlogic, StarTek, Teknowledge, Trikon Technologies and Vizacom (back in the black).

Good numbers were recorded by Amtech Systems, Applied Materials, Cable & Wireless Optus, Check Technology (back in the black), Cray (back in the black), Daisytek International, Datatec Systems, eForce, GCI (back in the black), Giga-tronics, Global Imaging Systems, Global Light Telecomms, Global Payment Technologies, IFX, Infodata (back in the black), Insight comms, Interactive Systems Worldwide (back in the black), Intermedia Marketing Solutions, InterSystems (back in the black), IXYS, Lanner Group, Marvell Technology Group, Maxim Integrated Products, Netgateway (back in the black), Netlife AG, NTT (back in the black), , NTT DoCoMo, ORBIT/FR (back in the black - just), Pegasystems (back in the black), Rural Cellular, Sage Group, Serena Software, Singapore Telecomms, Superconductive Components (back in the black), Tech Labs (back in the black), Telefonica Group, Telefonica Movile, Telemar, Triant Technologies (back in the black), TSI TeleSys (back in the black), TTI Telecom and Vertex International.

Satisfactory figures came from ACI Telecentrics, Activision (back in the black), Atos Origin SA, Autodesk, Casio Computer, Cobra Electronics, Comcast (back in the black), CompuDyne, Eagle Point Software, Greenwich Technology Partners, Group 1 Software, iGate (back in the black), Marconi, Merisel (back in the black), Pioneer, Sierra Systems, Singapore Telecomms, Swisscom AG, Techdyne (back in the black) and Telenor.

Mediocre returns were posted by ADIC, Agilent Technologies, All America Semiconductor, Analog Devices, Brocade Comms systems, Datron Systems, Dell, En Pointe Technologies (back in the black), Encompass Services, GSE Systems, HP, Intelligent Systems, Korea Telecom, LTX, MMT Computing, MSX International, Network Appliance, On-Site Sourcing, Paragon Technologies, Pioneer-Standard Electronics, Pomeroy Computer Resources, Sandvik, TDK, TechTeam, Telefonica de Argentina SA, Vestcom International, ViaSat and Wind River Systems.

Very poor results came from Knowles Electronics, MicroGrafx and Provant.

Losses were reported by 360networks, Accrue Software, Acterna, Acxiom, Advanced Lighting Technologies, Aether Systems, Alpnet, Altris Software, American Superconductor, Anacomp, Appiant Technologies, Applied Graphics Technologies, Applied Imaging, AT&T Latin America, Aztec Technology Partners, Baltimore Technologies, Barak, Billserv, Birch Telecom, Blue Zone, BrightStar Information Technology Group, British Telecom, BTI Telecom, BVR Technologies, Cable & Wireless, CacheFlow, Cadapult Graphic Systems, California Software, Cedara Software, Cell Point, Cellular Technical Services, Choice One Comms, Ciena, CII Technologies, Cintech Solutions, Cisco, COLT Telecom Group, Commodore Applied Technologies, Computer Sciences, CompuTrac, Conductus, CorVu, Credence Systems, Critical Path, CT Holdings, CyPost, Cypress Comms, DACG, Data Return, Datalex Plc., Davel Comms, DCTI, DG Systems, Digital Lava, Digitec, DISC, Dobson Comms, Dolphin Telecom, DTS, DTVN Holdings, EasyLink Services, eDispatch, Elbit, Elcom International, Electric Lightwave, eMagin, Emergent Information Technologies, Enlighten Software, Entravision Comms, Entercom Comms, Equant, Euroweb, Exigent International, Ezenia!, F-Secure, FairPoint Comms, Faro Technologies, Fastnet, FiberNet, Freenet.de AG, FullNet Comms, Genesis Microchip, GigaMedia, Gilat Satellite Networks, Global Crossing, Globalstar, Globecomm Systems, Gray Comms Systems, GT Group Telecom, GTC Telecom, GTSI, Hartcourt, Heartland Technology, High Speed Access, Hytek Microsystems, I-Link, I-Sector, iDial Networks, IFS, ImageWare Systems, Imaging Technologies, Infowave Software, Inprimis, Intasys, Intec Telecom Systems, iTouch, Integrated Business Systems & Services, Intelidata Technologies, Intelli-Check, Interactive Objects, internet.com, Internet America, Internet Gold, ISCO International, Kanakaris Wireless, KMC Telecom Holdings, Level 8 Systems, Liberty Digital, Lightning Rod Software, Luminant Worldwide, Magic Software Enterprises, Merrimac industries, Meta Group, Mediaplex, Micro General, Microcell, Microvision, MIS AG, Mitel, MobilCom, MTS Telemanagement Solutions, Navidec, nCipher, NetCurrents, Netergy Networks, Netia Holdings, Network Commerce, Network Computing Devices, NetZero, NICE Systems, NIKU, Notify Technology, NQL, NTL, NTS, Numerex, Nuvo Network Management, NVE, o2wireless Solutions, OfficeMax, OmniSky, Optelecom, Optical Cable, Opus360, Orbital Software Holdings, PacificNet.com, Panja, Paravant, ParkerVision, Partner Comms, Pegasus Comms, Photronics, Preview Systems, PixTech, Portal Software, ProTech Comms, Ramtron, Ravisent Technologies, Recognition Systems Group, Rhythms NetConnections, RiverDeep Group, Safeguard Scientifics, Sagent, SAMSys Technologies, Satama Interactive Oyj, Satmex, Saztec International, SBA Comms, Scan-Optics, Scitex, ScreamingMedia, SED International, SEEC, SEMX, Sina.com, SiteStar, Skillsoft, SmartServ, SoftNet Systems, Sonic Foundry, Sonic Solutions, SpatiaLight, SpectraSite, SSGI, Starbase, Storage Area networks, Sycamore Networks, T-NETIX, Tekgraf, TEK DigiTel, TeleCorp PCS, Telescan, Teltronics, Terra Lycos, The Alpine Group, The InterCept Group, Time Warner Telecom, Tom.com, Triton PCS, TTI Industries, Tut Systems, Tyler Technologies, United Pan-Europe Comms NV, UnitedGlobalCom, US Unwired, USOL Holdings, Verado, Vertel, Viador, Viasource Comms, Vical, Vicinity, Video Network Comms, Viewpoint, Visionics, Vitech America, VoiceStream Wireless, VSI Holdings, Vsource, Wave Systems, Western Wireless, Wire One Technologies, Wireless Facilities, WorldPort Comms, WorldQuest Networks, XATA, Xenos, Xybernaut, Z-Tel Technologies, ZiaSun Technologies and Zenith Electronics.

Other financial news included profit warnings from 3Com, Agilent Technologies, Encompass Services, Horizon Technology Group, HP, Maxim Integrated Products, National Semiconductor, Portal Software, QAD, Silicon Valley Group, Spirent, Sycamore Networks, Terayon, Terra Lycos, Ultimate Electronics, WebGain and XETA Technologies.

There was a share split announcement from Metro One Telecomms; a confirmed intention on an IPO by Lawson Software later this year; good IPOs by Instinet (electronic comms network) and Tellium (optical switches); and a withdrawn IPO from Zhone Technologies. Additionally, SSE Telecom filed for Chapter 11 bankruptcy protection.

Locally

Bryant (-50%)
Contlan (-37.5%)
Datatec (+40.7%)
Dectronic (-40%)
Infowave (+63.6%)
Jasco (+68.8%)
OAI (-38.9%)
Oxbridge (+100%)
Sempress (-59.6%)
Stella Vista (+75%)
Y2KTec (-50%)

Internationally

Advanced Power Components (-53.6%)
American Superconductor (+68.3%)
COOL (+60.3%)
Excelon (+57.9%)
Genesis Microchip (+80.6%)
Horizon Technology (-55.5%)
Kalamazoo Computer (+57.1%)
Vixel (+51.1%)
Xicor (+55.2%)

This week sees Computer Faire 2001 opening on Tuesday in Midrand and the latest full-year results from Datatec, whose shares went up significantly in the past few days.