Caution: Changes ahead!

Dimension Data`s UK acquisition garnered a lot of interest this week and there were also two extremely interesting cautionary notices. The first was a joint notice from Spicer and Brainware, where the heads of both operations come from the QData stable and have worked together for some time previously, and where the shares of Brainware have been trading consistently below the original of 100 cents.

The second cautionary of particular note states that MMW is talking with Datatec with regards to its distribution divisions. I wonder if this is going to be a merger or just a major stake holding by Datatec in MMW?

• the announcement of some good year-end results from Spicer-Mitchell (back in the black with a very different profiled company);
• excellent interim figures from AST, Computer Configurations and Global Technology; and
• satisfactory interim numbers from Digicore (but shares still around listing price).

[Local]

Local Cautionary Notices (see attachment)

Other local news

• the announcement of a preferred business alliance between Computer Configurations and "soon to be listed" Explorer Corporation Holdings; and
• the news that Oxbridge, an IT company specialising in motoring economics, will list by the end of March via the reverse take-over of the Bivec cash shell.

• we saw Microsoft continuing to bumble its way through the DOJ hearings, this time with an incorrect video tape; and
• a new squabble emerging between Siebel and Oracle on their respective companies' prospects in the field of customer relationship management. Siebel acquired Scopus Technology last May and its customers seem to be the target for Oracle!

[International]

Other international news

• the announcement that Geac Computers is looking for a new CEO;
• Qualcomm is shedding about 6% of its workforce; and
• Oracle Japan`s IPO is the hottest IPO in Japan for many years, as their shares soared some 70% in the first day of trading.

We saw excellent figures from AirTouch Communications, Arm Holdings, Business Objects, Cambridge Technology Partners (well above estimates), ECsoft Group, Intentia, PC Docs Group International and TSI International Software.

Losses came from Anadigics, Auspex Systems, Cymer, EarthWeb, Gruppo Formula SpA, IntelliCorp, Intergraph (revenue also down), IXC Communications, Mentor Graphics, Metricom, Netspeak, Olicom, OPTi, Platinum Software, Quality Semiconductor, Qwest Comms (revenue significantly up), SED Holdings, Sonic Foundry, Tera Computer, Tricord Systems and White Pine Software.

Good numbers were recorded by Cisco Systems, Indus International, Sprint (below expectations), Daisytek, ECI Telecom, Rogers Communications (back in the black), Samsung Electronics (full-year) and Tekelec.

Satisfactory numbers were reported by Computron Software (back in the black), Inacom (revenue and income flat), Internet Technology Group (back in the black), Madge Networks, Proginet and SCI Systems (but not well received).

Mediocre returns came from Applied Microsystems, Box Hill Systems, Dialogic, Dynatech, Integrated Circuit Systems, OrCAD, Security Dynamics Technology, Siliconix and V3 Semiconductor.

Very poor results came from CompUSA (earnings well down), EDS (income halved and revenue barely up), Interleaf (income well down and revenue down) and Ziff-Davis (income down nearly 90%).

Other financial news included profit warnings from AMD, Genicom (loss predicted for Q4 and full-year), Hitachi (year-end loss to be worse than expected), Industri-Matematik, Newbridge Networks (expected acquisition target), Procom Technology, Qualcomm (restructuring charges), SCI Systems, Staffware, Tech Data; and stock splits from Broadcom and Oracle.

Locally

Casey (+40.6%)
E-Data (+24.2%)
Paradigm (+23.6%)
UCS (+34.5%)
Wentech (-39.3%)
Y3K (-25.3%)

Internationally

3Com (-27.3%)
AMD (-26.7%)
Arm Holdings (+24.9%)
Cirrus Logic (-23.8%)
CNET (+31.5%)
Digi International (-31%)
IXC Comms (+28.1%)
JBA (+43.6%)
Mentor Graphics (33.7%)
MicroFocus (+27.4%)
Newbridge Networks (-20.7%)
Olicom (-32.7%)
Read-Rite (-24%)
Staffware (-29.3%)
Tech Data (-24.7%)
Tekelec (-25.3%)

Wednesday sees the listing of Cyberhost; but a consolidation within the local industry is more likely in the short term, especially since many of the shares of the weaker players are still below their original listing prices.