AOL loss, HP/Compaq merger grab headlines

The massive $54 billion loss in Q1 by AOL, and the activities associated with the HP/Compaq merger, which is now a reality, dominated the international world of IT and telecommunications during the last two weeks.

Look out for the PricewaterhouseCoopers consulting division`s $9 billion initial public offering (IPO), which could be the second largest IPO of all time behind that of AT&T Wireless.

Paul Booth, MD, Global Research Partners

At home, the selection rules impasse re the selection of the second national operator`s black empowerment partner and the continuing DataMirror/Idion scenario stole much of the local IT/telecoms headline space.

• we saw good annual results from Datacentrix (revenue and income both well up);
• satisfactory year-end numbers from Altech (revenue slightly down but earnings up);
• good interim figures from Sekunjalo Investments (revenue well up and back in the black);
• mediocre interim results from UCS (revenue well up but net profit down);
• a third quarter loss by FrontRange; and
• the suspension of the shares of E-Data, as well as those of KTL prior to its delisting following the unbundling of its stake in Grintek.

[Local]

Other local news included:

• share buy-back announcements from Comparex;
• Datatec`s withdrawal of the sale of its RangeGate subsidiary to Versatile Mobile Systems;
• Versant`s announcement of its appointment of Pretoria-based Silverbreeze as its South African distributor;
• the appointments of Dr Salomon de Jager as chief executive director of Pi-log, Henry Ferreira as the new country manager for the local HP/Compaq merged entity, Shireen Govender as the CEO of the newly merged Nexgen Fibreplus and Steve Loubser as MD of Pi-log;
• SmartForce`s denial that it has closed it SA office;
• the recommendation of a rejection of DataMirror`s revised offer for Idion;
• the announcement that Crux Technology Group is to sell-off its remaining assets and close its doors as a technology player, become a cash shell and possibly de-list; and
• the resignation of Brandon Spear, MD of Miraculum.

• we saw the announcement of a restructuring at Matsushita;
• the ousting of Walter Packard from the board of HP, the court ruling against his objections to the alleged irregularities re the voting decision of the proposed Compaq/HP merger and independent adjudicators finally confirming the voting numbers in favour of the merger;
• the name change of Australian-based ManTech Software to Oniqua; and
• the name change of Davox to Concerto Software.

Additionally, look out for the PricewaterhouseCoopers consulting division`s $9 billion initial public offering (IPO), which could be the second largest IPO of all time behind that of AT&T Wireless; the possible acquisition of BT`s Redcare by Numerex; the fate of Hynix Semiconductor following the non-approval of the proposed take-over by Micron Technology; the possible purchase of NavisionDamgaard by Microsoft; the result of the restructuring at NTL that involves some of its companies filing for Chapter 11 protection; and the acquisition target for Perot Systems, which is looking to double its size.

[International]

Other international news included:

• the appointments of Jan Baksaas as CEO of Telenor, Brian Bogosian as chairman of Visto, Todd Bradley as president of Palm Solutions Group, Christopher Clark as president and CEO of Virtela Comms, Richard Currie as chairman of BCE, Alan Hunt as chairman of Serena Software, Richard Parsons as CEO of AOL, Nicola Pignati as president and CEO of New Focus, Hector de Ruiz as CEO of AMD, Michael Sabia as CEO of BCE, W J Sanders III as chairman of AMD, Park Sang-ho as CEO of Hynix Semiconductor and Robert Walmsley as president and CEO of Cape Clear Software;
• the resignations of Doug Brackbill as chairman of Visto, Park Chong-Suo, CEO of Hynix Semiconductor, Bernard Ebbers as president and CEO of WorldCom, Tormod Hermansen as CEO of Telenor, Glen Myers as president, CEO and chairman of RadiSys, Jean Monty as chairman and CEO of BCE, W J Sanders III as CEO of AMD, and Barry Waite as CEO of Chartered Semiconductor;
• the retirement of Ed Zander, president and COO of Sun Microsystems; and
• job loss announcements from Agile Software, Aspen Technology, AT&T Canada, Ericsson, Identix, Jabil Circuit, JDS Uniphase, Leap Wireless International, Lucent Technologies, Siemens, Telewest, SonicWALL, VeriSign and Wind River Systems.

We saw excellent figures from Affiliated Computer, AudioCodes (back in the black), CTC Chile (back in the black), L-3 Comms, M-Wave, O2Micro, RDM (back in the black) and ScanSoft (back in the black).

Good numbers were recorded by Acer, Amdocs, Ansys, CACI, CGI Group, Concurrent Computer, CT Comms, Dassault Systemes, Dendrite, ECTel, Elite Info Group (back in the black), EPIQ Systems, ESS Technology (back in the black), Euronet Worldwide (back in the black), Exactech, EXI (back in the black), Fargo Electronics, Firstwave Technology (back in the black), Fiserv, Garmin, GTSI (back in the black), Hytek (back in the black), ICT Group, Intrado (back in the black), j2 Global Comms (back in the black), Kronos (back in the black), Logitech International, Manhattan Associates, Merge Technology, Micro General, MobileOne Asia, NDS Group, Overland Data, Par Technology, Paradyne (back in the black), PEC Solutions, Perot Systems (back in the black), Precise Software, Sage Group, Siemens AG, Simula, Somera Comms, Sonic Solutions (back in the black), Spectrum Signal (back in the black), TechTarget and WebSense (back in the black).

Satisfactory figures were posted by AMX (back in the black), Barra, Castelle (back in the black), Century Business Services, CenturyTel, Certegy, Commonwealth Telephone Enterprises, Comms Systems, Compucom, Consolidated Graphics, Diebold, DST Systems, Dynamics Research, EMS Technologies, Factual Data, France Telecom SA, Gtech, HickoryTech, Hummingbird (back in the black), IKON Office Solutions, Interactive Data, InVision Technologies, LaBarge, Nortech Systems, OnTrack Data International, Pac-West Telecomm (back in the black), Pegasystems, PeopleSoft, Per-Se Technology (back in the black), Printronix, Prophet 21 (back in the black), Satyam Computer Services, SAVVIS Comms (back in the black), Sonera, Sypris Solutions, TCSI, TESSCO Technologies, Thus, Tier Technologies, Transaction Systems Architects (back in the black), Wavecom SA and Western Digital.

Mediocre returns came from 3M, Actel, Alliance Imaging, Alltel, Altera, AlphaNet Solutions, Anixter International, Anteon, APAC Customer Services (but back in the black), APC, Arrow Electronics, AsiaInfo Holdings, Ask Jeeves, Autonomy, Avery Denison, BCE, Borland, BrightStar Information Technology Group, Cadmus Comms (but back in the black), Canon, Cap Gemini Ernst & Young, Check Point Software, Checkpoint Systems, Ciber, Citrix Systems, Coherent, Cotelligent (but back in the black), Cox Comms, Cray, Creative Technology, CSG Systems International, Cymer, Datascope, Dialog Semiconductor, Digital Fusion (but back in the black), Digitas, DSP Group, Eastman Kodak, EDS, Encor Wire, Exar, Fairchild Semiconductor, FalconStor Software, FiberMark, FlexiInternational Software, Foundry Networks, Gensym (but back in the black), Getty Images, Glenayre Technology, HCL Technologies, Hutchison Technology (but back in the black), I/NET (but back in the black), IDX Systems, Ilog SA, Imation, Infinium Software (but back in the black), Innotrac, Inrange Technologies, Inter-Tel, Intergraph, InterTAN, Ixos Software AG, JDA Software Group, Keane, Knight-Ridder, KPMG Consulting, Larscom (but back in the black), Lexmark, Macrovision, Maxim Integrated Products, Maximus, MCSi, Merisel, Micromuse, MicroStrategy (but back in the black), Nashua, New Horizon Worldwide, Open Text, Opnet Technologies, Optical Comms Products, Paxar, PC Mall, PCTEL (but back in the black), Performance Technologies, Plantronics, Presstek, Previo (but back in the black), Qualcomm, Quantum, Quest Software (back in the black), RadVision, Rainbow Technologies (but back in the black), Register.com, Ross Systems, Rudolph Technologies, S&T Systems Integration and Technology AG, Sanchez Computer Associates, Scan-Optics, SeeBeyond Technology (but back in the black), Sento (but back in the black), SGI (but back in the black), Silicon Storage, Siliconix, Sitel, Snap-on, STMicroelectronics, Storage Technology, Superconductor Technology, Sykes Enterprises, Symantec (but back in the black), Syntel, Syntellect, TACT (but back in the black), Teledyne Technologies, Telelec, Telefonica Del Peru, Telstra, Tetra Technology, United Microelectronics, Valassis Comms, VerticalNet (back in the black), Winland Electronics and Witness Systems (but back in the black).

Very poor results were recorded by Actel, ImageMax, LogicVision (but back in the black), NovAtel (but back in the black), OAO Technology, ON Technology (but back in the black), Roxio (but back in the black), Sapiens (but back in the black), SCM Microsystems (but back in the black), Silicon Labs (but back in the black), Technology Solutions Company and Vishay Intertechnology.

Losses were posted by 724 Solutions, Ablest, ACE*COMM, Acme Comms, ACS-Tech80, ActivCard SA, Actuate, Adept Technologies, Advanced Semiconductor, Aegis Comms, Agere Systems, AirNet Comms, Airspan Networks, Aiwa, Alaska Comms, Alcatel, Alcatel Optronics, Align Technology, Allen Telecom, Alliance Fiber, Alliance Semiconductor, Alpha Industries, AlphaNet Solutions, Alternative Resources, AltiGen, Alvarion, Amazon.com, American Access Technologies, Amkor Technology, Analysts International, AOL Time Warner, Applied Innovation, Applied Micro Circuits, Applied Microsystems, Applix, Apropos Technologies, Ariba, Arris Group, Art Technology Group, Artisan Components, Ascential Software, ASM International, Aspen Technology, AT&T, AT&T Canada, AT&T Wireless, Auspex, Avanex, Avant!, AvantGo, Avnet, Aware, Axcelis Technologies, Axeda Systems, Axsys Technologies, AXT, BEI Technologies, Billserv, Blue Martini Software, Bogen Comms, Bookham Technology, Bottomline Technologies, Brightpoint, Brio Software, BroadVision, Brooks Automation, Buckeye Technologies, Cablevision Systems, California Micro Devices, Call-Net, CAM Commerce Solutions, Caminus, Carrier Access, CDI, Centillium Comms, Charter Comms, CheckFree, ChipPAC, Chordiant Software, Cirrus Logic, Clarus, ClickSoft Technologies, CNET Networks, Cognex, Cohu, Colt Telecom, Com21, Comcast, CommScope, Compugen, Computer Access Technology, Computer Horizons, Comshare, Connectics, Coorstek, Cordiant Comms, CoSine Comms, Corio, Corning, Covad Comms, CSP, CTC Comms Group, Cysive, D&E Comms, DA Consulting Group, Data I/O, Datakey, Datastream Systems, Daw Technologies, DDi, Dice, Digex, Digital Insight, Digital River, DigitalThink, divine, DMC Stratex Networks, Docent, DSET, Eagle Broadband, EarthLink, EchoStar Comms, Edgewater Technologies, Elcom International, Eloquent, Embratel, Emcore, eMerge Interactive, Entercom Comms, Entrust, ePresence, Epicor, Equinix, Ericsson, Evolve, Evolving Systems, Exchange Applications, Extended Systems, Extensity, F5 Networks, Fantastic, Fiberstars, First Virtual Comms, Flextronics, FMC Technologies, Focal Comms, Forrester Research, Fortel, FreeMarkets, Frontstep, Gadzoox Networks, Gartner Group, Gemplus, Genesis Microchip, Genuity, Genus, Globecomm Systems, Golden Telecom, GRIC Comms, GSI Lumonics, Harris Interactive, Hector Comms, Hitachi, HyperFeed Technologies, Ibis Technology, Icon Medialab, ICOS Vision Systems, ImageX, Infineon Technologies, Information Resources, InfoSpace, InfoVista SA, Ingram Micro, Innoveda, Inrad, Integrated Device Technology, Integrated Telecom Express, Interactive Intelligence, Interlink Electronics, Interlinq Software, InterNAP Networks, Intershop Comms AG, interWAVE, Intevac, InTEST, iPIX, TXC, Jacada, Jaco Electronics, JDS Uniphase, JNI, LanOptics, Lante, Lantronix, Leap Wireless, Legato Systems, Lionbridge, Loral, LSI Logic, Lucent Technology, Luminex, M-Systems Flash, Macromedia, Macronix, Madison River Comms, Mapics, Marimba, MatrixOne, Matsushita, Maxtor, Maxwell Technologies, MDSI, Mercator Software, MetaSolv, Micrel, MicroStrategy, Microtune, Millennium Cellular, Millicom International, Mitek Systems, Mitsubishi, MMT Computing, Mobility Electronics, Mobius Management, Mpower Holding, MRO Software, MSC Software, MSL, MTS Systems, Multilink Technology, Mycom Group, Nanophase Technologies, NCT Group, NEC, Nera ASA, Net Perceptions, Netegrity, NetScout Systems, NetStore Plc., Network Commerce, Network Computing Devices, New Focus, Nextel Partners, Nexus Telocation Systems, Novadigm, Novatel Wireless, Nuance Comms, NVE, Oak Technology, On2 Technologies, ONI Systems, Online Resources, Onyx Software, OpenWave Systems, Oplink Comms, Optibase, ParkerVision, Paxson Comms, PCD, PeoplePC, Perficient, Pericom Semiconductor, Perkin-Elmer, Pinnacle Data Systems, Pivotal, Pixelworks, Precision Optics, Proxim, PSi Technologies, Ptek Holdings, QuickLogic, Qwest Comms, Radcom, RadView Software, Radware, Radyne ComStream, Rainmaker Systems, Read-Rite, Resonate, RIT Technologies, RMH TeleServices, S1, Sagent Technologies, Sapient, Scient, Scoot.com, Segue Software, ServiceWare Technologies, SignalSoft, Silicom, SilverStream Software, Socket Comms, SoftNet Systems, Software AG, Sohu.com, Sonic Innovations, Sony, SoundView Technologies, Source Interlink, SpeechWorks International, Spherion, SPSS, SRS Labs, STATS, Stellent, SynQuest, T-Systems International, Tanning Technology, Tarantella, Technitrol, Telaxis Comms, Tele2 AB, TeleCommunication Systems, Telesp Celular Participacoes SA, Telewest, Tellium, Telus, Terayon comms, Terence Chapman Group, Tower Semiconductor, TransAct Technologies, Trident Microsystems, Tripath Imaging, TTM Technologies, Twin Disc, UBICS, UnitedGlobalCom, Universal Access, Unova, USA Networks, ValiCert, Varian Semiconductor, Vasco, Veeco Instruments, Verilink, VeriSign, Verizon Comms, Verso Technologies, Viacom, Viant, Viewpoint, Vignette, Visionics, Vitria Technology, Vixel, VocalTec, Voxware, WebMethods, Wink Comms, Wire One Technologies, WorldGate Comms, WorldQuest Networks, XATA, Xerox, XM Satellite Radio, Zilog, Zixit, Zomax and Zygo.

Other financial news included share buy-back announcements from CT Comms, IBM, Linear Technology, Matsushita and Stamps.com; profit warnings from ADIC, Agile Software, BCE, CACI, Deutsche Telekom, Digital Insight, EarthLink, Ingram Micro, Intrado, Japan Telecom, KPNQwest, Marconi, OpenWave, QAD, S1, SeeBeyond, Sycamore Networks, VeriSign and Wind River Systems; share split announcements from SED International Holdings (reverse), ViryaNet (reverse) and Wireless Synergies (reverse); and a confirmed IPO from AOL cable operation.

Additionally, Network Associates is to re-state its 1999 and 2000 financial statements and Detica made a disappointing debut on the LSE, the first technology company to do so for more than 12 months.

Locally

Casey (+300%)
Dectronic (-33.3%)
FrontRange (+45.6%)
I-Solution (+30%)
Labat (+122.2%)
Sethold (+36%)
Spescom (+47.7%)
Vesta (+33.3%)
Y3K (-75%)

Internationally

Enherent (-56.2%)
Infinium Software (+62.5%)
KPNQwest NV (-62.4%)
Marconi (+60.1%)
OnSpan Networking (-61.5%)
PNC Telecom (-48.8%)
Terayon Comms (-57.3%)
VeriSign (-64.3%)
Sapient (-48%)
WorldCom (-71.1%)

Now that the HP/Compaq deal is a reality, it`s interesting to note the 150 top names that have been announced. From the previous HP and Compaq executive teams, notable by their absence are Jeff Clarke, Compaq`s CFO; Harry McKinney, president of HP`s BCO operation; and Thomas Siekman, Compaq`s senior VP and general counsel.

Also missing in the new line-up is Mark Lewis, Compaq`s VP and GM of the Enterprise Storage Group. The top 15 or so new positions are filled with more ex-HP individuals than those who came Compaq.

On the local scene the reverse is rumoured to true, with the Compaq SA people taking the majority of the senior positions in the new entity.