Capellas takes on WorldCom

The take-over of InterTrust Technologies by a consortium that includes Philips Electronics NV and Sony, the massive quarterly loss by Deutsche Telekom and the news surrounding Michael Capellas and his future at WorldCom dominated the international world of IT and telecommunications last week.

There is speculation as to VerticalNet`s fate following revelations that it cannot sustain itself beyond the first quarter of next year.

Paul Booth, MD, Global Research Partners

At home, Telkom`s proposed tariff hikes stole most of the local ICT headline space.

• we saw good year-end numbers from Elexir (revenue up and back in the black) and a full-year loss from Maxtec (revenue also down);
• ERP.com`s announcement of its JSE sector change as from 25 November;
• Ascential Software`s withdrawal from SA via a MBO into CenterField Software; and
• the opening of SA offices by SAVI Technology and Winslow Consulting Group.

[Local]

• 360networks` emergence from Chapter 11;
• the closure by Kodak of its Citipix operations;
• the sell-off by British Telecom of its stake in BSkyB;
• the FCC`s approval of the AT&T/Comcast broadband merger; and
• ex-Compaq CEO, Michael Capellas, has been appointed as chairman and CEO of WorldCom.

Additionally, there is speculation as to VerticalNet`s fate following revelations that it cannot sustain itself beyond the first quarter of next year and the resignations of its top two executives.

[International]

Other international news included:

• the appointments of Charles Ansley as president and CEO of Synon Comms, Lance Boxer as interim CEO of Universal Access, Bob Bruggeworth as CEO of RF Micro Devices, Michael Cerny as COO of Scalable Software, Alex Diaz as chairman of e.Digital, Dennis Grant as CEO of CreekPath Systems, Frederick Lax as CEO of Tekelec, John Mueller as president of Valor Telecom, and Craig Shular as president and CEO of GrafTech;
• the resignations of Michael Capellas, president and number two at HP, and Kevin McKay, president and CEO of VerticalNet;
• the retirements of Dave Norbury, CEO of RF Micro Devices; Michael Margolis, CEO of Tekelec; and Gilbert Playford, CEO of GrafTech (stays on as chairman); and
• job loss announcements from Agilent, AMD, Billserv, Cable & Wireless, Carreker, Cypress Semiconductor, Eastman Kodak, ECI Telecom, i2 Technologies, Research In Motion, Redback Networks, Sprint, Sun Microsystems, Wind River Systems and WorldCom.

We saw excellent* figures from InterTrust Technologies (back in the black), Nexland (back in the black) and Timeline (back in the black).

Good numbers* were recorded by Aladdin Systems (back in the black), Applied Materials (back in the black), Astea International, Dell, ebix.com (back in the black), Paravant, SRS Labs (back in the black), Techdyne (back in the black), Teltronics (back in the black), TRC, Vodafone Telecel SA and Xfone.

Satisfactory* figures were posted by All American Semiconductor, Barak (back in the black), BEA Systems (back in the black), Cognigen (back in the black), Creo (back in the black), Dicom Group, Digital Power (back in the black), Engineering Ingegneria Informatica SpA, GTC Telecom (back in the black), Hanaro Telecom (back in the black), Japan Telecom (back in the black), NetNation, Network Appliance (back in the black), OfficeMax, Orckit Comms, Rural Cellular (back in the black), Speedus, TechTeam Global (back in the black), Touchstone Group Plc., Tucows (back in the black), UnitedGlobalCom (back in the black) and WorldPort Comms (back in the black).

Mediocre* returns came from ASA International, Auto-Graphics (but back in the black), Call-Net Enterprises (back in the black), ClearWave, Crayfish (but back in the black), Electronic Systems Technology, ePlus, Internet Gold (but back in the black), KPN NV (but back in the black), Pac-West Telecom (but back in the black), PT Indonesia Satellite, Siemens AG (but back in the black), T-NETIX, Taitron Electronics (but back in the black) and Zapata.

Very poor results* were reported by AM Comms (but back in the black), Ampex, Bonso Electronics, CAM Commerce, Micros-To-Mainframes and Trio-Tech.

Losses came from ACT Teleconferencing, Advanced Photonix, AESP, Affinity Technology, AirNet Comms, AISoftware Group SpA, AltiGen Comms, Andrea Electronics, Applied Digital Solutions, ARC Wireless, Artemis International Solutions, Aspect Comms, AT&T Latin America, ATX Comms, Baldwin Technology, Block Comms, Boundless, Cable & Wireless, Cabletel, Camtek, CCC GlobalCom, CenterSpan Comms, Champion Communication Services, Citadel Security Software, CNT, Cognitronics, Comdial, Commtouch, COMTEX, Concur Technologies, Conductus, Cordia, CSP, CyPost, D&E Comms, Daou Systems, Data Systems & Software, Datatrak International, Davel Comms, Daw Technologies, deltathree, Deutsche Telekom, Digex, Digital Fusion, Digital Lightwave, DISC, Dotronix, DSET, EchoStar Comms, ECI Telecom, Emcore, eNGENUITY, enherent, ePHONE Telecom, eSpeed, Ezenia!, FASTNET, FiberCore, FiberNet, Fischer Imaging, Focal Comms, Frontline Comms, FullNet Comms, Genesys Conferencing, GigaMedia, Go America, GSE Systems, GTDATA, Horizon PCS, Hynix Semiconductor, I/Omagic, Infinite Group, Information Analysis, InTechnology, InterDigital Comms, Internet Initiative Japan, IMSI, Intelli-Check, Intuit, Invensys, ION Networks, ITC-DeltaCom, JMAR Technologies, Key3Media Group, Knology, Kulicke & Soffa, Leap Wireless, LML Payment Systems, LTX, Magic Software, Microvision, Mitek Systems, MMT Computing, Mobility Electronics, MSX, MTI Technology, N2H2, NCipher, NCT Group, NeoMagic, Neon Systems, netGuru, NetLojix Comms, NetStore, Network Engines, Niku, nStor Technologies, NTL Comms, Nucentrix Broadband Network, OAO Technology, ORBIT/FR, Orbotech, Orchestream, OSE USA, Paragon Technologies, ParkerVision, Parlex, Pegasus Comms, PFSweb, Porta Systems, Preferred Voice, Procom Technology, Raining Data, Rare Medium, Rohn Industries, Satmex, Sentry Technology, Simtek, Softbank, SSGI, STM Wireless, Storage Area Networks, Storage Computer, Stronghold Technologies, Summus, Superconductive Components, Superior Telecom, Sycamore Networks, T-Online International AG, T-Systems, Teknowledge, Telebyte, Telefonica, Telesystem International Wireless, TeraForce, Tiscali, Top Image Systems, TSI Telecom, TTI Telecomms, TTR Technologies, UBICS, Unity Wireless, Universal Access, uniView Technologies, US Unwired, Vari-L, Vertel, VIA NET-WORKS, ViaSat, Vicom, ViewCast, Vodafone, Voxware, Wave Systems, Wind River Systems, Wireless Data, WorldQuest Comms, XO Comms, Xybernaut, Z-Tel, Zap.com and Zi.

Other financial news included share buy-back announcements from Acxiom, ADP, Airspan Networks, Castelle, Intel, Matsushita Electric, NVE and Vignette; profit warnings from Applied Materials, Atos Origin, Cable & Wireless, Celeritek, Carreker, Deutsche Telekom, Epcos AG, Hynix Semiconductor, Motorola, NCipher, Research In Motion and Siemens AG; share split announcements from CMGI (reverse), EXE Technologies (reverse), LightPath Technologies (reverse), NVE (reverse) and Orckit Comms (reverse); an IPO announcement from Singapore`s MobileOne; and mediocre IPOs debut from China Telecom and SI International. Additionally, Gateway and Veritas are now the subjects of a SEC probe.

Locally

Casey (+900%)
CCG (-50%)
Crux (+66.7%)
Elexir (+100%)
ERP.com (+21.1%)
Global Technology (+18.8%)
Pinnacle (+50%)
Prism (+26.7%)
ShawCell (-45.5%)
Vesta (-40%)

Internationally

Cable & Wireless (-42.4%)
CNET Networks (+43.6%)
Corning (+41.3%)
CTC Comms Group (-62.2%)
Dobson Comms (+122.9%)
Focal Comms (-46.8%)
Leap Wireless (-53.3%)
Madge (+50%)
Openwave Systems (+92.2%)
Robocom Systems International (+50%)

* NB

'Guidelines` for the categorisation of results is as follows and is always in comparison with the equivalent period for the previous year; pro forma numbers are ignored.

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

Good: Both revenue and net income growth is 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.