AST`s loss, BTG`s buy-out

Lucent`s $550 million settlement of various shareholder suits and the possible acquisition of Corel dominated the international world of IT and telecommunications last week.

Calpers, the largest US pension fund, named several technology companies on its annual list of worst governed organisations.

Paul Booth, MD, Global Research Partners

At home, the Bytes Technology Group buy-out of Xerox`s local shareholding and AST`s massive interim loss stole much of the local ICT headline space.

* we saw good half-year figures from Pinnacle Technology (revenue and earnings both up);
* mediocre year-end numbers from Cape Empowerment Trust (no revenue figures but earnings well down);
* very poor interim numbers from Integrear (revenue well down and just in the black);
* a full-year loss from iTouch (but revenue well up); and
* an interim loss from AST (but revenue up).

Other local news included:

* the announcement of a rights offer from OneLogix;
* the appointment of Hans Smith as non-executive chairman of AST;
* the resignation of Gerrie de Klerk as non-executive chairman of AST; and
* Bytes Technology Group`s buy-out of Xerox`s 50% shareholding in Xerox SA, now to be called Xeratech.

Additionally, WDB Investment Holdings, an empowerment organisation, seems set to take a significant stake in Paracon. MGX`s sale of two of its companies to management in deals that are supported by black empowerment partners also seems close to fruition.

New local distributorships included that of the Bose range of sound systems by ETA Audiovisual; and business management consultancy, TPI Corp, has become a SA vendor for Compass, a global performance improvement consultancy.

* Affinity Internet Holdings` shares were suspended on the London Stock Exchange and its subsidiary, Affinity Wireless, was placed under administration; and
* Lucent Technologies settled various shareholder suits worth over $550 million, one of the largest ever such settlements.

Additionally, look out for the possible acquisition of Corel; Telefonica`s sell-off of its major stake in Antena 3; and the buy-out of Eurotel by Cesky Telecom.

Other international news included:

* the appointments of Craig Barratt as president and CEO of Atheros Comms, Joe Brookman as president and CEO of Microlog, James DeBello as president and CEO of Mitek Systems, Grant Evans as CEO of A4Vision, Jeffrey Graves as president and CEO of Kemet, Roger King as president of Software Spectrum, Gary Larsen as president and CEO of AmmoCore Technology, Edmund Ludwig as chairman of Optelecom, Scott Silver as chairman and CEO of Applied Digital Solutions, and Gary Weis as CEO of Cometa Networks;
* the resignations of Graham Coxell as CEO of Marlborough Stirling, Bernard Hulme as CEO of Tadpole Technology, Diane Kamionka as president and CEO of Cintech Solutions, John Stanton as CEO of T-Mobile USA (ex-VoiceStream Wireless) and Shin Yun-Sik as chairman and CEO of Hanaro Telecom;
* the retirements of Clyde Heintzelman as chairman of Optelecom, and Richard Sullivan as chairman and CEO of Applied Digital Solutions; and
* job loss announcements from Array Networks, Novo Group and Sony.

We saw excellent* figures from VimpelCom; and very good* numbers from Faro Technologies and Zapata.

Good figures* were recorded by Electronic Systems Technology (back in the black), Global Axcess (back in the black), iPIX (back in the black) and SRS Labs (back in the black).

Satisfactory* results were posted by CODASciSys, Greenwich Technology Partners, Inmarsat, Philippine Long Distance Telephone, Systems Union Group, Telekom Austria AG (back in the black) and Warwick Valley Telephone.

Mediocre* returns came from AlphaNet Solutions (but back in the black), Digital Power, Entrada Networks (back in the black) and Swisscom AG; while very poor results* came from CompuDyne, PAR Technology and Trans-Lux.

Losses* were posted by Aehr Test Systems, AESP, AirNet Comms, ARC Wireless Solutions, Ault, Broadwing, Cabletel, Cognitronics, Comarco, Corel, enherent, Enterasys Networks, Essex, FiberMark, GSE Systems, Hytek Microsystems, IBSS, Interland, IQE, Koor Industries, Manugistics, Merix, Mercury Scheduling Systems, Meta4 NV, Moving Bytes, Mpower Holding, NetLojix Comms, NHC Comms, Novatel Wireless, nStor Technologies, Oberthur Card Systems, Path 1 Networks, Red Hat, Riverstone Networks, SBA Comms, Simtek, T-NETIX, Telewest Comms, WPCS International, UbiquiTel, Ultradata Systems, USDATA, XM Satellite Radio, XO Comms, Xybernaut and Zap.Com.

Other financial news included share buy-back announcements from Intuit, Nokia and Trend Micro; a shareholders rights plan from MangoSoft; results/profit warnings from Aris, Belden and Evans & Sutherland; a share split announcement from Glenayre (reverse); and a EUR15 billion rights issue announcement from France Telecom.

Additionally, Network Associates is to re-state, yet again, its financial results for 1998, 1999 and 2000; and Chi Mei Optoelectronics, Taiwan`s second largest maker of TFT LCDs, has put on hold its $575 million issue of global depository receipts.

Locally

CS Holdings (-15.2%)
Cycad (+50%)
Datatec (-10.7%)
DNA (-10.5%)
Faritec (+14.3%)
Glotec (+12.5%)
Idion (+26.7%)
Sekunjalo (-25%)
Sethold (-14.8%)

Internationally

Auspex Systems (+108.8%)
Enherent (+28.6%)
Entrada Networks (+40%)
Exabyte (-39.2%)
NTELOS (+33.3%)
PCD (-66.7%)
PSC (-60%)
RadView Software (+28.6%)
Read-Rite (-41.2%)
SONICblue (-46.7%)
WJ Comms (-28.6%)

Calpers, the largest US pension fund, named several technology companies on its annual list of worst governed organisations. The list includes Gemstar-TV Guide International, JDS Uniphase, Manugistics, Parametric Technology and Xerox. In its comments on the list, it said, for instance, that it would like Xerox to expand its board to include three independent directors and split the position of chairman and CEO.

* NB

Guidelines for the categorisation of results are as follows. The figures 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 are in excess of 50%.
* Good: Both revenue and net income growth are 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.