Chapter 11 filing for Comdex organiser

The stay of execution in the Java/Microsoft battle and the news that Comdex organiser Key3Media has applied for Chapter 11 protection, dominated the international world of IT and telecommunications last week.

It has been my belief for some time that we have too many exhibitions and conferences in SA.

Paul Booth, MD, Global Research Partners

At home, the aftermath of the second national telecoms operator (SNO) decision and the news that the communications minister might "go it alone", dominated the local ICT headline space.

* Comparex posted an interim loss (revenue also well down, but figures include Europe prior to the sell-off); and

* Trematon`s shares have been annotated until "an emphasis of matter" in its annual financial statements is resolved.

[Local]

Other local news included:

* Zaptronix plans to de-list from the JSE and split into two companies;

* Patrick Landey resigned as a non-executive director of Global Technology (last week he resigned from the board of MGX);

* Payteq was named as the mystery buyer of Hicor South Africa; and

* the announcement that Ucingo is to hold onto its stake in Telkom SA when the company lists in March.

Moreover, the communications minister`s decision that the government might "go on its own" re the SNO has riled ICASA, but has been welcomed by Goldleaf, which has decided not to take legal action re the rejection of the two tender bids for the 51% stake.

* Intermat is to go private; and

* the order for Microsoft to carry Java in its Windows operating systems was stayed.

Additionally, look out for the outcome of a suspend request to the Irish take-over panel re the proposed Alphyra management buyout; the possible sell-off by Vodafone of its shareholding in Japan Telecom Holdings to Ripplewood Holdings LLC, a New York investment fund; and the outcome of the court`s decision re Gary Forsee, currently vice-chairman of BellSouth. When BellSouth recruited Forsee nearly four years ago, he had to break his so-called 'non-compete` agreement with Sprint. Forsee wants to return to Sprint as chairman and CEO, but again has the issue of a restraining order. This time, the boot is on the other foot and BellSouth is objecting. A decision from the court is expected in about a week.

[International]

Other international news included:

* the appointments of Philip Gioia as chairman and CEO of Loudeye, Howard Lubert as CEO of Telkonet, and Carl-Henric Svanberg as CEO of Ericsson;

* the resignation of Kurt Hellstroem, CEO of Ericsson; and

* job loss announcements from Circuit City, IQE, Palm and WorldCom.

We saw excellent* figures from Benchmark Electronics (back in the black), Captiva and WebEx Comms (back in the black); and very good* numbers from Allen Telecom (back in the black), Boston Comms Group (back in the black), Firstwave Technologies, j2 Global (back in the black), Pixar, Sophos, SurfControl Plc., and SVI Solutions.

Good figures* were recorded by Getty Images (back in the black), iMergent (back in the black), Infonet Services, Interactive Data Systems, KDDI, Mitsubishi (back in the black), New Edge Networks, Optus Telecom (back in the black), PC Mall, Radiant Systems, Radware (back in the black), Sanchez Computer Associates, Sharp, Siliconix and SRA.

Satisfactory* results were posted by Anixter International, Ansys, Baldwin Technology, CCC Information Services Group (back in the black), Checkpoint Systems (back in the black), Cisco Systems, CSC, Datastream Systems, Imagistics (back in the black), IXOS Software AG, Maximus, Perceptron, Ross Systems, Segue Software (back in the black), Singapore Telecomms, Speedware, TDK (back in the black), Trend Micro and ThruPoint.

Mediocre* returns came from Adecco SA (but back in the black), Applied Innovation (back in the black), Computer Programs & Systems, Dassault Systemes SA, EDS, Embratel (back in the black), Epcos AG, Hypercom, Internet America (back in the black), Intevac (back in the black), KTF, MDSI Mobile Data Systems (back in the black), Mitek Systems, MTS (but back in the black), New Zealand Telecom, Overture Services, Performance Technologies, Pioneer-Standard Electronics, Rudolph Technologies, SAP Systems Integration AG, Savvis (but back in the black), Talk America, US Cellular, VocalTec Comms (but back in the black) and XRT.

Very poor results* were posted by Brightpoint (but back in the black), Hitachi (but back in the black), SimpleTech and Sprint (but back in the black).

Losses* came from Aether Systems, Airspan Networks, Aladdin Knowledge Systems, Alcatel, Alcatel Optronics, Alliance Fiber Optic Products, Alvarion, American Superconductor, Apropos Technology, Arc International, Arris, AT&T Canada, ATMI, Aware, Axeda Systems, AXT, BackWeb, BakBone Software, Bookham Technology, Cedara Software, Centillium Comms, Chordiant Software, Click2learn, Copper Mountain Networks, Corel, Corillian, Corvis, Critical Path, Dacom, Emcore, En Point Technologies, Endwave, ePresence, Ericsson, First Virtual Comms, Gartner, Global Payment Technologies, Globecomm Systems, Hanaro Telecom, HPL Technologies, I-many, iBasis, IDX Systems, iGate, Information Resources, Infowave Software, Intentia, Interphase, Itron, JNI, Lantronix, Legato Systems, Level 3 Comms, LG Electronics, London Bridge Software, M-Wave, Mercator, MKS Instruments, MPS Group, MRV Comms, Net Perceptions, NetSol Technologies, New Focus, Next Level Comms, Notify Technology, Omnicell, ON Semiconductor, Orbotech, Peco II, Pegasus Solutions, Predictive Systems, PrintCafe Software, PSi Technologies, Quovadx, Silverline Technologies, Switchboard, Symmetricom, Telecomms Systems, Telephone & Data Systems, The Network Management Group, The TriZetto Group, Time Warner Telecom, Trikon Technologies, Trimble, Tvia, Ubizen NV, Vicor, Vishay Intertechnology and Zilog.

Other financial news included a share buy-back announcement from AudioCodes; a shareholders rights plan from Trend Micro; results/profit warnings from Agilent Technologies, Alcatel, Cisco, EDS, Ericsson, Marlborough Stirling, Mitsubishi Electric, MPS Group and Pioneer-Standard Electronics; and a share split announcement from eBT International (reverse). Additionally, Key3Media, organiser of Comdex as well as other conferences and exhibitions, has filed for Chapter 11 bankruptcy protection.

Locally

Acuity (+400%)
Elexir (+15%)
Infowave (-25.3%)
Intervid (+17.1%)
MGX (-17.4%)
Softline (+15.4%)
Stella Vista (-50%)
Zaptronix (-50%)

Internationally

Agilent Technologies (-30.5%)
Alcatel Optronics (+47.7%)
Azlan Group (+41.2%)
Chartered Semiconductor (-39.5%)
DA Consulting Group (+86.7%)
DICE (-43.7%)
Geoworks (-42.3%)
Internet America (+41%)
Mitek (-31.6%)
Rolfe & Nolan (+36.1%)

It has been my belief for some time that we have too many exhibitions and conferences in SA and that the needs of the potential attendees have changed significantly over the past few years.

However, the organisers of these events have thought otherwise and have ignored many of the warning signs that have manifested themselves in the US and Europe over recent years. With a key overseas organiser, Key3Media, now going into Chapter 11, I wonder how many of our companies in this space will bother to review their programmes of activities?

* 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.