Another SNO delay

The multibillion-dollar proposal for the privatisation of Cox Comms and the cancellation of CeBIT America 2005 after only two years since its original launch dominated the international world of IT and telecommunications last week.

At home, the news about a possible delay to the second national operator (SNO) licensing date and the news of the government`s new procurement policy stole much of the local ICT headline space.

* We saw satisfactory interim numbers from Control Instruments (revenue up but net profit static); and
*Trading updates from Business Connexion, ERP.com (positive) and Grintek (positive).

Other local news included:

*The minister of communications announced a possible delay to the SNO licensing date (I`m not yet convinced that we will see anything significant re the SNO before 2005);
*Dimension Data sold off its 35% stake in Mthombo IT Services;
* The appointments of Ashvin Mancha as chairman of Interconnective Solutions and Mark Smith as CEO of Interconnective Solutions; and
* New government procurement policies, which now feature leasing as the preferred option.

New local distributorships included that of Advanced BusinessLink`s Strategi product by Leading Edge Solutions, Altec Lansing`s multimedia audio solutions by Esquire Technologies, Maconomy products by M-Five Software and its resellers across Africa, and Xerox`s Phaser range of printers by Square One.

* We saw a $7.9 billion proposal by the family that controls most of Cox Comms to take the firm private;
* A possible delay to Google`s IPO as a result of stock options to staff; and
* The cancellation of CeBIT America 2005, scheduled for June 2005.

Additionally, look out for the acquisitions targets of Sun Microsystems, one of which is rumoured to be Novell; the outcome of the discussion between Hitachi, Matsushita and Toshiba re a joint LCD production capability; the outcome of take-over rumours re Eidos; and the outcome of the lawsuit likely to be filed by the US SEC against Business Objects.

Other international news included:

* The appointments of Philip Black as CEO of Nexsan, Steven Cole-Hatchard as chairman and CEO of Provo International, Roger Dorf as CEO of Navini Networks, Kim Frimer as president of TDC Solutions, John Jack as CEO of Fortify Software, Terry Leahy as CEO of Amherst Technologies, David McCrabb as interim president and CEO of Apropos Technology, Eric Meurice as president and CEO of ASML Holding NV, Robert Stevens as president and CEO of Lockheed Martin and Tom Thimot as president and CEO of GoRemote Internet Comms; and

* The resignations of Ventura Martinez DelRio Sr as chairman and CEO of Provo International and Mark Guthrie as president and CEO of InsWeb.

Look out for the acquisitions targets of Sun Microsystems, one of which is rumoured to be Novell.

Paul Booth, MD, Global Research Partners

We saw excellent* figures from Advanced Semiconductor Engineering, All American Semiconductor, Alvarion (back in the black), Computer Software group (back in the black), DirectView, DRS Technologies, GSI Lumonics (back in the black), hongkong.com, I D Systems (back in the black), Jupitermedia (back in the black), Linktone, Pilat Media (back in the black), Ultradata Systems (back in the black), ValueClick and Wireless Facilities.

Very good* numbers were CryptoLogic, numbers from Anaren Microwave (back in the black), Casio, Creative Technology, CSP (back in the black), Faro Technologies, Golden Telecom, II-VI, iPayment (back in the black), IXSYS, Maxim Integrated Products, Mercury Computer Systems, Moldflow, NetEase.com, Pixar, SAP Systems Integration AG, Siliconix, Sonic Solutions, SRA International, Univision Comms, Winbond Electronics (back in the black), World Gaming (back in the black) and ViaSat.

Good figures* were recorded by Advant-e (back in the black), Audible (back in the black), Axsys Technologies, BearingPoint, Blackbaud (back in the black), Blackboard (back in the black), CheckFree (back in the black), Communications Systems, ComputerLinks AG, Document Sciences (back in the black), DTS, EGL, En Pointe Technologies (back in the black), Fayrewood, Globe Telecom (back in the black), IFCO Systems, Integrated Circuit Systems, LeCroy, Macrovision, Meta Group (back in the black), NSI Software, O2Micro, Orbotech, Perot Systems, Philippine Long Distance Telephone, Quality Systems, ServiceWare Technologies (back in the black), Syniverse Technologies, TeleTech Holdings and Vishay Intertechnology.

Satisfactory* results were posted by BCE, BluePhoenix Solutions, CTE, D&E Comms, Delcam, DG Systems, Dynamics Research, Entercom Comms, Entravision Comms, eSpeed, InfoNow (back in the black), Information Builders, Magic Software Enterprises, Maximus, Mediacom Comms (back in the black), Metrocall Holdings, NT&T, Spirent (back in the black), TDC, Telus, Xanser and Zomax (back in the black).

Mediocre* returns came from Arch Wireless, Citizens Comms, Cypress Comms (but back in the black), Danka Business Systems (but back in the black), Data I/O, EasyLink, Fast Search & Transfer, Fuji Photo Film, Glenayre Technologies (but back in the black), Hector Comms, IAC, Indra Systemes SA, Intac International, Intelsat, Korea Telecom, Neoware, Nvidia, NZ Telecom, Olympus, PC Mall, RCM Technologies, Sega, Viewpoint (but back in the black), Singapore Telecomms, Telekomunikasi Indonesia, Vital Images and Western Wireless.

Very poor results* were posted by Getronics, Infogrames Entertainment SA, NDS Group, NUR Macroprinters (but back in the black) and Taitron (but back in the black).

Losses* were reported by 3D Systems, Aether Systems, Airspan Networks, Allin, American Superconductor, Anacomp, Applied Digital Solutions, Aspen Technology, Avanex, Aware, Cadmus Comms, Captaris, Centra Software, chinadotcom, Clarus, CompuCom Systems, Corvis, Covansys, Creo, Daleen, Daou Systems, Delphax Technologies, Digital Angel, Drexler Technology, DSL.net, ECTel, EFJ, Elcom International, Emcore, Filtronic, Gilat Satellite Networks, GoRemote Internet Comms, Intec, InteliData Technologies, InterNAP Network Services, Madison River Comms, MCI, Microvision, Mikohn, Monolithic Systems Technology, MTS, netGuru, NetLogic Microsystems, NetRatings, ntl. Numerex, Occam Networks, Path 1 Network Technologies, Paxson Comms, PCTEL, Peco II, Per-Se Technologies, Phoenix Gold International, Quanta Services, Qsound Labs, Qwest Comms, Radiant Systems, Raining Data, Register.com, Reptron Electronics, Robotic Vision Systems, Safeguard Scientifics, Sapiens, Savvis Comms, Scitex, SCM Microsystems, Sierra Systems, Simtek, Sipex, Sonic Foundry, SPSS, TeraForce Technology, Time Warner Telecom, Titan, Tripath Technology, Triton PCS Holdings, UbiquiTel, Unity Wireless, Verso Technologies, VerticalNet, VitalStream, Xcelera, XM Satellite Holdings, Xybernaut, YDI Wireless and Zix.

Other financial news included analyst upgrades for Acxiom, Applied Materials, Entravision Comms, SigmaTel, SunGard Data, Symantec, ViaSat and Wireless Facilities; analyst downgrades for America Movil SA De CV, Asyst, ATI Technologies, AVX, CTE, Drexler Technology, First Data, Kemet, Nvidia, PalmOne, PCTEL and Vishay Interconnective; private placement of shares by SBS Interactive, Tripath Technology and Wayport; a share offering from Viisage; private funding obtained for Arkeia, CallMinder, Mirage Networks and VerticalNet; share buy-back announcements from Drexler Technology, DSP Group, Imation, Molex and Polycom; a positive result/profit warning from Adobe; negative results/profit warnings (often veiled) from BEA Systems, Blue Coat Systems, Ciena, CNT, Drexler Technology, Epcos AG and Synopsys; share split announcements from Ansys (2:1) and Pegasus Comms (2:1); good IPOs from Navteq and Tata Consultancy Services; a satisfactory IPO from RightNow; and a withdrawn IPO from Nanosys.

Additionally, Red Hat has re-stated its results for 2000 through 2004 following a change in its revenue recognition policy.

Locally

Bryant (-66.7%)
CompuClearing (+33.6%)
Control (+11.1%)
CS Holdings (-12%)
Datatec (+10.3%)
Digicore (+21.4%)
Stella Vista (+133.3%)
Synergy (-45%)
Vesta (+33.3%)
Zaptronix (+100%)

Internationally

Blue Coat Systems (-39.5%)
Elcom International (+61.5%)
FiberMark (-57.7%)
Leap Wireless International (-70%)
Nvidia (-38.8%)
QA (+37.1%)
RCN (-34.3%)
Scan Optics (+59.3%)
Sitel (-40.3%)
Terra Networks SA (-40.8%)

In terms of indices, the Nasdaq was down 5.9% to its lowest level in 12 months and the JSE down 0.8% for the week.

Last week`s scorecard was for BusinessWeek`s 100 Top Brands. From a technology perspective there were many companies named, with Microsoft at two, IBM at three, Intel at five, Nokia at eight, HP at 12, Cisco at 16, Sony at 20, Samsung at 21 and Dell at 25. New entries included Siemens at 39 and eBay at 60.

* NB

Guidelines for the categorisation of results are as follows and are always in comparison with the equivalent period for the previous year; pro forma numbers are ignored (the terminology may vary slightly from country to country).

* Excellent: Both revenue and net income growth in excess of 50%.

* Very good: Both revenue and net income growth in excess of 25%.

* Good: Both revenue and net income growth in excess of 10%.

* Satisfactory: Revenue is within 10% of previous year and net income is up.

* Mediocre: Either revenue and/or net income is down.

* Very poor: Net income is less than 1% of revenue.

* Loss: A loss has been recorded.