Better tech results

The EDS Agility alliance and the flood of quarterly results (proportionally significantly better than this time last year) dominated the international world of IT and telecommunications last week.

At home, the second national operator (SNO) news and the Metrofile investment stole much of the local ICT headline space.

* A trading statement from MGX indicated a smaller loss in the "soon to be published" results;

* A positive trading update from Telkom SA;

* Casey changed its name to DataPro Group and successfully switched to an AltX listing; and

* The formal de-listing of IST shares.

Other local news included:

* Labat Africa delayed its proposed rights offer;

* Old Mutual Asset Managers and Tata Africa Holdings were named as two of the three parties interested in buying a controlling stake in the SNO;

* Vodacom purchased Tiscali SA`s cellphone business;

* Lithalelanga Connection Holdings bought a 63% stake in Tecor Group;

* A joint venture between Southern African NGO Network (Sangonet) and ISP, ICOZA, was established to provide NGOs with ICT services and support; and

* Mineworkers Investment Company acquired a 26% stake in Metrofile.

New local distributorships included that of Thermaltake Technology by Corex and Siemens HiPath range by Comztek; while a new strategic business alliance was announced by DataPro and Mitel.

Furthermore, on the local front look out for the buyers of the 15.1% stake in Telkom SA that Thintana currently holds and which could be available after their 'lock-up` agreement expires on 22 November.

On the African front, look out for the first country to launch a 3G network service as it looks like a race between Vodacom in SA and Emtel in Mauritius.

* The suspension of Argonaut Games` shares on the LSE;

* Strategic alliances between GlobeTel Comms and Philippine telecoms giant Globe Telecom, and between Stellar Technologies and Global Net Solutions;

* The name changes of CMS Manufacturing Systems to CMSsoftware and Advanced Wireless Systems to Advanced Wireless Comms;

* Thomson will spin-off its TV tubes unit; and

* Telenor sold its 4% shareholding in Intelsat.

Last week, Business Week published Europe`s Hot Growth Companies. It was disappointing to see the highest rated technology-oriented company was Wincor Nixdorf at 29.

Paul Booth, MD, Global Research Partners

An international strategic partnership (the EDS Agility alliance) was announced between EDS and six of its vendor partners, Cisco, Dell, EMC, Microsoft, Sun Microsystems and Xerox, aimed at jointly developing new IT offerings at the network, infrastructure, application and business process levels, that will be implemented by EDS.

Additionally, look out for the consulting partners being lined-up by EDS for helping it tackle the business process outsourcing space.

Other international news included:

* The appointments of David Hills as CEO of LookSmart, CD Hobbs as president and COO of META Group, Bob Kimball as CEO of MECA Comms, Barry Litwin as CEO of Hummingbird, Lars Marcher as president and COO of Dataram, Mark Mays as CEO of Clear Channel Comms, Arshad Matin as president and COO of BindView, Joseph McGrath as CEO and president of Unisys (as from 1 January 2005), Michael McGuinness as CEO of PanGo Networks, Vincent Ostrosky as chairman, CEO and president of Selectica, Boyd Pearce as president and COO of ANTs software and Jaime Smith as CEO of iSKY;

* The resignations of Arne Jense, CEO of Ementor, Mike Rollins, CEO of TVC Telecom (remains as chairman), and Lawrence Weinbach, CEO and chairman of Unisys (stays on as chairman); and

* Job loss announcements from Agilent, Convergys and Emblaze.

Excellent* figures from Advanced Power Technology (back in the black), Aetrium (back in the black), ATMI (back in the black), Broadcom (back in the black), Cohu (back in the black), Cymer (back in the black), eBay, Epicor, Flir Systems, FormFactor, FSI International (back in the black), Google, Helix Technology (back in the black), Intevac (back in the black), Ixia, KLA-Tencor, Mattson Technology (back in the black), MKS Instruments, Open Solutions, Pericom Semiconductor (back in the black), PLX Technology, PowerDsine (back in the black), Powerwave Technologies (back in the black), Ramtron International (back in the black), Silicon Image (back in the black), Smith Micro Software (back in the black), Stamps.com (back in the black), Stellent (back in the black), Sypris Solutions and Tessera Technologies.

Very good* numbers were posted by Altera, CACI International, Ceragon Networks (back in the black), CheckFree (back in the black), Cognex, Digital River, Electronic Arts, EMC, j2 Global Comms, Leadis Technology, LG Electronics, Mercury Interactive, Micrel, Microchip Technology, MIPS Technologies (back in the black), Molex, Nanya Technology, Navarre, Nextel Comms, Plantronics, Satyam Computer Services, SBS Technologies, SigmaTel, Sirenza Microdevices (back in the black), Sirf Technology, SS&C Technologies, STMicroelectronics, Supertex, Symantec, Synaptics, Teradyne (back in the black), Trend Micro, Witness Systems (back in the black), WJ Comms (back in the black), Xilinx, Yahoo Japan and Zarlink Semiconductor (back in the black).

Good figures* were recorded by Acxiom, Aladdin Knowledge Systems, Amazon, AMIS Holdings, Amphenol, ARM Holdings, Arrow Electronics (back in the black), Artesyn (back in the black), Avocent, Benchmark Electronics, Cadence Design Systems (back in the black), California Micro Devices, CDW, Check Point Software, Citrix Systems, Computer Programs and Systems, Corillian, Digitas, Dionex, Ericsson (back in the black), Fiserv, FormScape, Freescale Semiconductor (back in the black), Getty Images, Harris, Hummingbird (back in the black), Hyperion, II-IV, Image Sensing Systems, Information Holdings, Integrated Device Technology, Inter-Tel, Interactive Data, Intrado, Keane, Lexmark, Logitech, Lucent Technologies, Macromedia, Motorola, Online Resources, Packeteer, PeopleSoft (back in the black), Pixelworks (back in the black), PMC-Sierra, Polycom, RadVision, RSA Security, Samsung SDI, SAS, Scientific-Atlanta, Secure Computing, SpectraLink, SunGard Data Systems, Tele2, Telmex, Texas Instruments, TietoEnator, TNS (back in the black), TSYS, VeriSign (back in the black) and West.

Satisfactory* results were posted by 3M, ACS, Advent Software, Alltel, Applied Innovations, Aspect Comms, Boston Comms Group, Ceridian, Compuware (back in the black), CTG, Diebold, Digital Insight, DSP Group, DST Systems, Eastman Kodak, EDB Business Partner ASA, EFI, Entrust (back in the black), Equifax, Exponent, Extreme Networks, FileNet, First Consulting Group (back in the black), Honeywell, IBM, Ikonics, Insight Enterprises, Interphase, Journal Comms, Made2Manage, Manhattan Associates, Micro Linear (back in the black), Microsoft, Navigant Consulting, NVE, Omtool (back in the black), PC Connection, Power Integrations, ProQuest, Rimage, Rogers, SAP, SBC Comms, Siebel Systems (back in the black), Socket Comms (back in the black), StorageTek, SupportSoft (back in the black), Sybase, Telephone & Data Systems, VISX and Xerox.

Mediocre* returns came from Actel, AT&T Wireless, Autonomy, BroadVision (but back in the black), Brooktrout, Captiva, Cass Information Systems, CDI, Cingular Wireless, Concord Comms, Convergys, CTS, Data I/O, eLEC Comms, Eleco, Emulex, Exar (but back in the black), Fargo Electronics, Foundry Networks, Imation, JDA Software, Optibase, Parametric Technology, Pervasive Software, Planar Systems, Retek (but back in the black), Seagate Technology, Teleflex, Ultratech, US Cellular, Valassis, Vasco Data Security International and Westell Technologies.

Very poor results* were reported by ATG (but back in the black), Dialog Semiconductor, EarthLink, Inficon (but back in the black), Inforte, Interactive Intelligence (but back in the black), PDF Solutions and Pinnacle Data Systems.

Losses* were posted by Alliance Semiconductor, Applied Micro Circuits, AT&T, August Technology, Avici Systems, Avistar Comms, AXT, Borland, C-COR, Carrier Access, Celeritek, Celestica, Cirrus Logic, Colt Telecom, Comnetix, Computer Associates, Concurrent Computer, Corning, Covad Comms, Digital Impact, E.piphany, Ementor, Evans & Sutherland, FalconStor Software, iBasis, Ibis Technology, Informatica, Insignia Systems, Intersil, Interwoven, Iomega, IPIX, Lattice Semiconductor, Maxtor, Mentor Graphics, MRV, NexPrise, Peak International, Pinnacle Systems, Plumtree Software, PlusNet, Quantum, RealNetworks, Redback Networks, Sento, Silicon Graphics, Sprint, Tikcro Technologies, Tollgrade Comms, Tower Semiconductor, Transmeta, Trikon Technologies, TriQuint Semiconductor, Tumbleweed, Ultimate Software, Vastera, Verisity, Vignette, WebMethods, Zhone Technologies and ZiLOG.

Other financial news included analyst upgrades for AT&T, Borland, Celestica, Convergys, eBay, Hyperion, Integrated Device Technology, Ixia, KLA-Tencor, ManTech International, Packeteer, palmOne, Pinnacle Systems, Powerwave Technologies, Radware, Seagate Technology, SigmaTel, Symantec, Teradyne, TNS, Unova and Valassis; analyst downgrades for Amphenol, Autonomy, CDI, Cognex, Diebold, DSP Group, EarthLink, InTest, Intuit, Maxtor, McAfee, Plantronics, PMC-Sierra, Stamps.com, Ultratech, VISX and WebEx Comms; and a share offering from Teltronics; private funding obtained for Emagia, Evident Software, Insignia Solutions, Metapa and Saqqara.

Share buy-back announcements came from Brooktrout, DST Systems, E.piphany, EarthLink, Manatron, Power Integrations, Symantec and Varian Semiconductor; positive results/profit warnings from Hitachi and Kronos; negative results/profit warnings (often veiled) from Analog Devices, EarthLink, EMS Technologies, Fujitsu, InTest, LeapFrog Enterprises, Linktone, Maxtor, Parametric Technology, STMicroelectronics, Thomson, Tripath Technology and Tower Semiconductor; share split announcements from Advanced Wireless Comms (reverse 10:1) and Symantec (2:1); a proposed IPO from Celtel on the LSE early next year; an IPO filings from China Netcom on NYSE; a satisfactory IPO from Telvent; and a disappointing IPO from Internet firm, Interchange. Ceridian has restated its results from 1999 through 2003 and Q1 of 2004.

Locally

AST (-11.3%)
Eureka (-11.1%)
Idion (+9.9%)
Jasco (-10.7%)
MGX (-16.7%)
Paracon (+7.4%)
Sethold (-13.6%)
Synergy (-13.3%)
Telkom (+8.6%)
Trematon (-20%)

Internationally

Computer Services (-49.5%)
Interphase (-24.3%)
Leadis Technology (-42%)
Maxtor (-27.7%)
MIPS Technologies (+25.5%)
Neteller (+27.3%)
RCN (+50%)
Reversus (+26.9%)
Scan-Optics (+50%)
Superscape (+28.3%)

In terms of indices, Nasdaq was up 0.2% but the JSE down 1.6% for the week.

Last week, Business Week published Europe`s Hot Growth Companies. It was disappointing to see the highest rated technology-oriented company was Wincor Nixdorf at 29. Other rankings in the top 50 included Sophos at 35, Inform P Lykos at 41, PC-Ware at 43 and the Isoft Group at 45.

* 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.