A week of multi-billion takeovers

The multi-billion takeovers involving Altos Group SA and Philips Electronics subsidiary Origin BV, Applied Micro Circuits and MMC Networks (second largest deal ever in semiconductors), and Deutsche Telekom and Powertel dominated the international world of IT and telecommunications last week.

At home, Nedcor`s investment in IQ Business Group and Nedcor`s re-alignment of its Dimension Data shareholding, and the flood of South African companies earnings announcements stole most of the local headlines.

• excellent full-year numbers from Prism (earnings well ahead of forecast);
• good full-year figures from Smacsoft (margins slightly squeezed);
• very poor full-year figures from Digicore (only just in the black and well down on previous year);
• a full year loss (a revised and audited figure) from Y2KTec (the loss now larger than the revenue figure);
• excellent interim numbers from Paracon (six month revenue almost at the level of the last full-year); and
• satisfactory half-year numbers from UAM.
• Additionally, the first set of interim numbers came from LogicalOptions, following its "break-out" from Educor, and Bynx announced that it expects its shares to be de-listed from the JSE in mid-October.

[Local]

Other local news included:

• the resolution of the squabbles at Y2KTec;
• the statement from Prism that it is considering a primary overseas listing;
• IQ Business Group`s preference for a London listing in a few years rather than a local one;
• the rumours that MGX is looking at CCH as a possible acquisition; and
• MTN and Vodacom have been denied access to the 1800MHz spectrum for the immediate future, but may swap some of their 900MHz allocations over the coming weeks.

• it seems Telecom Italia is likely to take a major stake in Venezuela`s cellular company Digitel; and
• Minolta Co (Japan) filed its intention to acquire the outstanding shares of Minolta-QMS (currently owns 57%).
• Additionally, it is rumoured that World Online International BV could be acquired by Tiscali SpA this week.

[International]

Other international news included:

• the appointments of Jack Blair as chairman of SCB Computer Technology, Robert Karulf as president of Invensys CRM division, and C Kenneth Morrelly as president and CEO of Robocom Systems International;
• the resignations of Cor Boonstra, president of Royal Philips Electronics, Andy Mitchell, MD of Alta Vista UK, and Frederick Pakis, co-founder and co-chairman of JDA Software; and
• job losses at G-Tech, Mynd, Novell (30%!) and MicroStrategy.

We saw excellent figures from China Mobile, ERG, LTX and Via Technologies.

Losses came from 3Dfx, Aim Global Technologies, Biodata, Certicom, Computer Automation Systems, Dynex Power, JetForm, Korea Thrunet, Mannesmann, MGI, Microlog, Micros Systems, Mynd, Neoware Systems, Netgateway, Openshop Holding AG, Optio Software, OTI, Pilat Technologies, Robocom, SLMsoft.com, SmartServ Online, Superconductive Components, T-Online, Teletouch Comms, Tiscali SpA and VTEL.

Good numbers were recorded by CMG, Comverse Technology, Dycom Industries, Global Web, Morse Holdings, MYOB, Novas, Ordina NV, SCH, Siennax International and Wind River Systems.

There were satisfactory results from Deutsche Telekom, Neoware Systems, Telefonica and Telstra.

It is rumoured that World Online International BV could be acquired by Tiscali SpA this week.

Paul Booth, ITWeb columnist

Mediocre returns came from ACD Systems, Acer, African Lakes, IFCO Systems NV, Infinite Graphics (back in the black) and Telekom Malaysia.

Very poor results came from Algol SpA (but back in the black), CRC Group, Robotec, SCB Computer Technology, SeaChange International and SMTEK International.

Other financial news included profit warnings from African Lakes, AT&T (incorporation of Excite AtHome), FSI International, G-Tech, iXL Enterprises, Quality Software Products, Technology Solutions and Viant; a share split announcement from Lattice Semiconductor; and Optical Comms Products, a US subsidiary of Furuawa Electric Co, and Resources Connection, a former Deloitte`s unit file for IPOs.

Locally

Cyberhost (+25%)

Digicore (+50%)

Elexir (+25%)

ERP.com (+100%)

Explorer (+33.3%)

Hicor (+29.6%)

JemTech (+25%)

OSI (-25%)

PTH (+33.3%)

SecData (+60%)

Internationally

Applied Imaging (+48.4%)

Bitstream (+70.1%)

ConMat Technologies (+61.5%)

Cray (+37.8%)

HMT Technology (+37.5%)

Madge Networks (+66.7%)

Minolta-QMS (+64.7%)

Manugistics (+40.8%)

Orckit Comms (+41.9%)

ScanSoft (+43.1%)

Stamps.com (+62.2%)

This week will see yet more local result announcements, including EOH; while next week sees the "Computer Faire circus" move to Cape Town.