CEOs, CFOs sign off

The news of CEOs and CFOs signing off their companies` figures following the new US requirements in this regard dominated the international world of IT and telecommunications last week.

The next few weeks could be a very telling time, as some 20+ local companies report their annual or interim results.

Paul Booth, MD, Global Research Partners

At home, the handful of local results stole much of the local ICT headline space during an extremely quiet week locally and internationally.

• we saw satisfactory annual figures from Aplitec (revenue slightly down but net profit up);
• a full-year loss from AST (but revenue well up);
• good interim numbers from Control Instruments (revenue up and back in the black);
• the suspension of Hicor`s shares; and
• the termination of the listing of C-Tech.

[Local]

Other local news included:

• the resignation of Ronnie Price as chairman of MGX;
• the appointments of Patrick Landey as acting chairman of MGX and Andy Milne as CEO of M-Web;
• the Securities Regulation Panel`s announcement that it would undertake a thorough investigation of recent events at Comparex;
• the two-month extension of the deadline for applications for the remaining 51% of the second national telecoms operator;
• the entry of Solution Worx into the SA market;
• the announcement that Connection Group has from today transferred to the General Retailers-Hardlines sector;
• the proposed liquidation of TheShoppingMatrix; and

.         the announcement that Candor Technologies will spin-off its sales-incubator as an independent entity, called MagentaSoft.

• we saw the name change of ZixIt to Zix; and
• the announcements that UPC intends filing for Chapter 11 in September, while NTL is hoping to emerge from it the same month.

Additionally, look out for the impact on EDS of the US Airways Chapter 11 filing; the possible take-over of Getronics following a dramatic fall in its share price; the possible sale by TeleWest of its 17% stake in SMG; and the spin-off of software company Diligent Technologies, from EMC.

[International]

Other international news included:

• the appointments of Christopher Buckley as MD of ASAT Singapore PTE, Alfred Chuang as chairman of BEA Systems, Jim Green as president and CEO of Digital Lightwave, Jack Kirschling as chairman and CEO of GreyStone Digital Technology, and Dave Zabrowski as CEO of S2io Technologies; the resignation of Dick Hardt, CEO of ActiveState; and job loss announcements from Agere, Applied Innovation, Fujitsu, IBM and Scientific-Atlanta.

We saw excellent figures from ePHONE Telecom (back in the black) and Nexland (back in the black).

Good numbers were recorded by Brocade Comms Systems, CACI, China Mobile (Hong Kong), ClearOne Comms, ClearWave NV, D&E Comms (back in the black), Digital Video Systems, EchoStar (back in the black), Groupe Steria SCA, ManTech, ScanSource and Xfone.

Satisfactory figures were posted by Aladdin Systems Holdings (back in the black), Applied Materials, Barak, Cimatron (back in the black), Dell (back in the black), Innovative Solutions & Support, Mapics, Network Appliance (back in the black), Pacific Internet (back in the black), Qsound Labs (back in the black), Teledyne (back in the black), Transiciel SA, TTI Telecom and Unilog SA.

Mediocre returns came from Analog Devices, Autodesk, BEA Systems, BrightStar (back in the black), ePlus, EuroTel Bratislava, Getronics (back in the black), GFI Informatique SA, Hungarian Telephone & Cable, Infodata (back in the black), INSCI (back in the black), Integral Systems, MasTec (back in the black), Matav, MicroTel International, Nvidia, Perceptron (back in the black), Photronics, Razorfish (back in the black), T-Netix and Teltronics.

Very poor results were reported by Anacomp (just in the black), Arch Wireless and Teknowledge.

Losses came from 1mage Software, ACI Telecentrics, ACT Teleconferencing, ADIC, AESP, Affinity Technology Group, Agile Software, AM Comms, Applied Graphics Technology, Artemis International Solutions, Aspen Technology, AT&T Canada, AT&T Latin America, ATX Comms, Auto-Graphics, Barrister Global Services Network, Bridge Technology, C-Cor.net, Cabletel Comms, Camtek, CE Software, CheckFree, chinadotcom, Choice One Comms, CNT, Cogent Comms, Cognitronics, Comdial, Commtouch, Cordia, Creative Technology, Cryptologic, Crystal Systems Solutions, Data Systems & Software, Datalogic International, Daou Systems, Davel Comms, Delphax Technologies, Digex, Digital Angel, Ditech Comms, DSET, Dynacore Holdings, ECSoft Group, EDB Business Partner ASA, enherent, Essex, Fastnet, FiberCore, FiberNet Telecom, Focus Enhancements, FullNet Comms, GigaMedia, GTDATA, Hanaro Telecom, Horizon PCS, Hynix Semiconductor, I/NET, iCrystal, iGo, IIJ, IIS, ImageWare Systems, Intelli-Check, Intelligroup, Interactive Systems, Internet America, Intuit, Jones Media Networks, Key3Media Group, Keyware Technologies NV, Knology, Level 8 Systems, Lionbridge, LML, London Bridge Software, Magnetek, Mattson Technology, Mediacom Comms, Merrimac Industries, Micros-to-Mainframes, Microvision, MPSI Systems, National Datacomputer, nCipher Plc., NCT Group, Nematron, Neon Systems, netGuru, NetLojix Comms, Network-1, Network Commerce, Niku, NeoMagic, nStor Technologies, NTELOS, NTL, NuVox comms, On Command, OnSpan Networking, ORBIT/FR, Overland Storage, PacificNet, Pegasus Comms, PerfectData, Raining Data, Rare Medium, Robotic Vision Systems, SAFLINK, Savvis, SBA Comms, SBS Technologies, Sentry Technology, Simtek, Simtrol, SmartDisk, Spescom Software, SSP Solutions, Storage Computer, Stronghold Technologies, Summus, Superconductive Components, Superior Telecom, SVI Solutions, Systemax, Tangram Enterprise Solutions, TCSI, Technical Comms, Telebyte, Telesystems International Wireless, TenFold, Thus, Timeline, Titan, TTR Technologies, UBICS, UnitedGlobalCom, Unity Wireless, US Unwired, Veramark Technologies, Veridian, Vertel, ViaSat, VINA Technologies, VitalStream Holdings, Vizacom, Wind River Systems, WM-data AB, XO Comms, Xplore Technologies and Xybernaut.

Other financial news included share buy-back announcements from Analog Devices, Radiant Systems and Serena Software; profit warnings from Applied Materials, Autodesk, Groupe Steria SCA, Kulicke & Soffa, nCipher, OpenTV, Pumatech, Thus, Verizon Comms, WM-data AB and Workflow Management; and a share split announcement from FirePond (reverse). Additionally, Symbol Technologies is now the subject of a SEC probe following disclosures related to revenue recognition; and Charter Comms has been subpoenaed by a federal grand jury re its accounting practices.

Locally

Advtech (-12.5%)
AST (-16.7%)
Cape Empowerment Trust (-16.7%)
Control (+49.1%)
Elexir (-50%)
ERP.com (+16.7%)
Pinnacle (-23.1%)
Spescom (+25%)
Stella Vista (-20%)

Internationally

Arel Comms & Software (+51.5%)
CNET Networks (+76.4%)
CTC Comms Group (-67,2%)
DA Consulting Group (+100%)
DDi (-42.5%)
Madge Networks (+64.1%)
Qwest Comms (+55.6%)
SBA Comms (+45.7%)
Serena Software (+44.5%)

The next few weeks could be a very telling time, as some 20+ local companies report their annual or interim results. There are bound to be a few surprises, unfortunately, and most of these are likely to be negatively oriented, although I`m sure there will be an exception or two. The first in this queue is MGX whose final year-end results are expected later today.