A week of settlements, sell-offs, mergers

The Andersen Consulting/Arthur Andersen settlement and the $6.4 billion merger of Pnone.com and Software.com dominated the international world of IT and telecommunications last week.

This week will see the publication of the full year numbers from several local companies including Aqua Online, Ixchange and MGX.

Paul Booth, columnist, ITWeb

At home, the tie-up of Softline with World Online and the continuing sell-off of Brainware subsidiaries stole many of the local headlines, during an extremely quiet week.

• profit warning from Paradigm;
• the listing of Intervid in the IT sector of the JSE, having been transferred from the development capital sector; and
• the opening of a South African office by Micrografx.

[Local]
[Cautionary]
[Listing]
[Result]

• we saw the "breaking-free" of Andersen Consulting from Arthur Andersen, following an arbitration judgement, although the former will have to now change its name;
• the announcement by Psion that it intends to float its Symbian software joint venture;
• rumours that World Online International NV is in discussion with the Italian Internet service provider, Tiscali, re a possible merger; and
• Informix announced it was undergoing a major re-organisation.

[International]

Other international news included:

• the appointments of Sanjay Kumar as CEO of Computer Associates, Mike Pickett as president and COO of Onvia.com and David Sadler as president, CEO and COO of Merisel;
• the resignation of Charles Wang as CEO of Computer Associates (he stays on as chairman); and
• job loss announcements from Convergent Comms and Infinium Software.

We saw excellent figures from Applied Materials, Cisco, Credence Systems, Dataram, Emerson Radio, ePlus and Trend Micro.

Losses came from Accord Networks, Adaptive Broadband, Amerigon, Argis Comms, Alpnet, AML Comms, Arch Comms, Ariel, Barak, Birch Telecom, Blue Martini Software, Cablevision Systems, Chinadotcom, CII Technologies, Data Critical, DataDesign AG, Datalink.net, Dolphin Telecom, E*Comnetrix, Eagle Point Software, Easyscreen Plc., eGain, Elbit, En Pointe Technologies, Essex, FirstWorld Comms, GCI, GST Telecom, GTS, High Speed Access, IBS Illinois Superconductor, Interactive, ICG Comms, Icon Medialab Imaginon, Infinium Software, Infobank Intelect, International Holdings, Information Analysis, Intellicorp, Inter-Tel, Interactive Objects, Interliant, InterWAVE Comms, LanOptics, Lernout & Haupsie, Lightning Rod Software, LightPath Technologies, Logix Comms, Merrimac, MetaCreations, Micros-to-Mainframes, Microvision, Mobilcom, Mobius Management Systems, Network Plus, NetZero, NorthPoint Comms, NTL, NumereX, OfficeMax, OneLink, Orbital, Orckit, ParkerVision, Pegasus Comms, Peritus Software, Printware, PSINet, SBA Comms, Scan-Optics, ScanSoft, SoftNet Systems, Sohu.com, SpeechWorks International, StarMedia Network, Startec, STM Wireless, Storage Computer, Telecomputing, Teletrac, Teligent, Top Image Systems, Triton PCS Holdings, Versatel Telecom, Vialog, VoiceStream Wireless, Wave Systems, WebLink Wireless, Wire One Technologies, WorldQuest Networks and Zap.com.

Good numbers were recorded by Anaren Microwave, Aspen Technology (back in the black), Cray (back in the black), Dell, DRS Technologies, GenTek, Infonet (back in the black), Meta Group, Pomeroy Computer Resources, Salem Comms (back in the black), Telescan (back in the black), Verizon Comms and Vitech America.

Satisfactory results were reported by AXT (back in the black), Canon, Cap Gemini, Classic Comms, Cotelligent (back in the black-just), France Telecom, Hector Comms, Netsmart, TDK, Telekomunikacja Polska SA, World Access (back in the black) and ViaSat.

Mediocre returns came from Alliance Semiconductor, Avnet, ForSoft, TDS Informationstechnologie AGR and Safeguard Scientific.

Very poor results came from ACT Teleconferencing, Comtrex, DataWave Systems (but back in the black), Eiger Technology, GTSI, Micro General (but back in the black - just), Nashua, Overland Data, PSC and Windland Electronics.

Other financial news included profit warnings from Cap Gemini, Cedara Software, Informix (re-organisation charge), Icon Medialab and Merant, and share split announcements from Siebel Systems and ViaSat.

There were also mediocre IPOs from AOL Latin America, ChipPac (test and packaging services), Equinix (Internet services), Mind CTI (customer care software) and Pemstar (electronics manufacturing); and successful IPOs from Evolve Software (Internet application solutions), McData (EMC spin-off), Repeat Technology (wireless comms) and TeleCommunications Systems (network applications).

Locally

AdvTech (+35%)
Casey (-28.6%)
Crux (+27.3%)
Labat (+29.6%)
Maxtec (+29.3%)
MMW (-23.5%)
USKO (-28.6%)

Internationally

Aspen Technology (+36.1%)
Cedara Software (-35.1%)
Cirrus Logic (+33.9%)
Citrix Systems (+33%)
Focal Comms (-28.9%)
ICG Comms (-51.9%)
Larscom (+37.5%)
SSA (+33.3%)
Ursus Telecom (+61.2%)
Va Linux Systems (+36.2%)

This week will see the publication of the full year numbers from several local companies including Aqua Online, Ixchange and MGX; while the latest quarterly numbers from some major IT/telecoms companies are also due.