Charter progress

The forthcoming Google IPO and the disappointing quarterly results and forecasts from HP dominated the international world of IT and telecommunications last week.

At home, the latest on the ICT empowerment charter with respect to multinational companies and the continuing squabbles re the proposed staff cuts at Telkom stole much of the local ICT headline space.

* We saw satisfactory year-end figures from Business Connexion (revenue and profit both slightly up);

* A delay to the proposed de-listing of MGX; and

* Positive trading updates from Idion, Jasco and Venfin.

Other local news included:

* Datatec`s acquisition of UK-based Analysys;

* The announcement that CIO Africa will be published quarterly as from November 2004;

* DataPro`s impending listing on AltX; and

* The agreement signed by the ICT empowerment charter working group and the local US Chamber of Commerce re multinational companies and compliance with the empowerment charter.

On the African scene we saw the appointment of Ismaila Adebayo Adewusi as acting chairman of Nigeria`s Vee Networks, and the signing of a partnership between Asyst International and Zambia`s Necor Zambia.

* We saw yet another twist in the legal battle between the SCO Group and IBM;

* The opening of the bidding for Google shares; and

* CyberGuard terminated the acquisition of Secure Computing.

We saw yet another twist in the legal battle between the SCO Group and IBM.

Paul Booth, MD, Global Research Partners

International strategic partnerships were announced between IVI Comms and Velocity West; Computer Horizons and Edict Systems; and Vertical Computer Systems and AD OPT Technologies.

Additionally, look out for the finalisation of the deal whereby Cinven, a private equity house, buys the cable TV businesses of France Telecom and Vivendi Universal; the outcome of the discussions between Swisscom and Telekom Austria; a possible bid for MCI by investment firm Leucadia, which is also interested in AT&T; and Deutsche Telekom`s possible acquisition of its non-owned interests in various Eastern European telecomms companies such as Poland`s PTC in which it already has a 49% stake.

Other international news included:

* The appointments of John Belknap as chairman of eMerge Interactive, James Hoffmaster as president of Cognex, Jo Major as president and CEO of Avanex, Kanti Purohit as CEO of DataMEG, Kyle Ranson as CEO of InFocus, and Vin Ratford as president and CEO of AccelChip;

* The resignations of Eric Benhamou as chairman of PalmSource and John Harker as CEO of InFocus (stays on as chairman); and

* Job loss announcements from CNT, Conexant and SCM Microsystems.

Excellent* figures from Electronic Systems Technology, Essex, Fischer Imaging (back in the black), Image Entertainment (back in the black), InfoSonics, LCC International (back in the black), M-Flex, Mannatech, Porta Systems (back in the black), Shanda Interactive Entertainment, Sirvis (back in the black), WindsorTech, Wireless Age Comms and Zi (back in the black).

Very good* numbers were posted by Adept Technology (back in the black), Agilent Technologies (back in the black), AML Comms, Analog Devices, Anaren Microwave (back in the black), ARC Wireless Solutions, Astea International (back in the black), Datatrak International (back in the black), Gensym (back in the black), GSE Systems (back in the black), Hauppauge Digital (back in the black), Innodata Isogen (back in the black), ORBIT/FR, SBS Technologies and T-Mobile USA (back in the black).

Good figures* were recorded by Advanced Photonix, Avnet, Bottomline Technologies (back in the black), Cisco, Concerto Software, Dell, Infodata Systems, Internet Gold, Lenova, Micronetics, Pomeroy IT Solutions, Radica Games (back in the black), ScanSource, Sensytech, SRS Labs, T-Online (back in the black), TACT (back in the black) and TechTarget.

Satisfactory* figures were reported by Access Worldwide (back in the black), Alliance Imaging, ASA International (back in the black), BEA Systems, CSC, Deutsche Telekom, Hewlett-Packard, KPN, Pacific Internet, Smtek International, SR Teleperformance, Systemax (back in the black), Telstra, Tucows, Unilog SA, Workspace Group and Worldspan.

Mediocre* returns came from Bisys Group, Channel Commercial, Compal Electronics, EchoStar Comms, InterDigital, Netsmart Technologies, Optibase, Overland Storage, Paragon Technologies, Rural Cellular, SureWest Comms, Swisscom AG, Teamlog SA and Track Data; while very poor results* came from Alpine group, Cimatron, FiberMark (but back in the black) and I-Sector (but back in the black).

Losses* were announced by Access Integrated Technologies, ActivCard, ADIC, AFA Systems, AirNet Comms, Amtech Systems, APA Optics, Artisoft, Axcess International, Axeda Systems, Bitstream, Cablevision, Camtek, Charter Comms, Commerce One, Concurrent Computer, Cordia, Data Systems and Software, Day Software, Digital Fusion, Diversified Security Solutions, Diversinet, e.Digital, ECI Telecom, Elbit Systems, FiberNet, Fisher Comms, FOCUS Enhancements, Front Porch Digital, Global Payment Technologies, GoAmerica, Grande Comms Holdings, Heidelberg Druckmaschinen AG, HPL Technologies, IIJ, ImageWare Systems, Impsat, Infocrossing, Infonet services, Infowave, Intec Telecom Systems, Intelligent Systems, Intrusion, Island Pacific, ITC^DeltaCom, Leap Wireless International, LightPath Technologies, LML Payment Systems, Logic Devices, Marconi, Merisel, Mitek Systems, MTM Technologies, network-1, Notify Technology, Onex, Optimal Group, ParkerVision, Plaintree Systems, Redbus Interhouse, Roxio, SatCon Technology, ScanSoft, Softbank, Sedona, SpatiaLight, Summus, Technology Solutions Company, Terremark Worldwide, Timeline, UGC, Unity Wireless, V-ONE, Veramark, VIA NET.WORKS, WMS, Workstream, WorldGate Comms, WorldQuest Networks, XO Comms, Z-Tel Technologies, Zamba Solutions, Zap.com and Zim.

Other financial news included analyst upgrades for Activision, BEA Systems, Brocade Comms, Brooktrout, Dell, Diebold, Identix, Lexmark, Merge Technology, Sapient, Transmeta, Ulticom, Ultratech and Verizon Comms; analyst downgrades for 3Com, Corning, Fairchild Semiconductor, Kulicke & Soffa Industries, Maxtor, MSC Software, National Semiconductor, PLX Technology, Ptek Holdings, RF Micro Devices, Teradyne, UTStarcom and Xilinx; and a private placement of shares by i2 Telecom, OzVision and Saba Software.

There was a share offering from XO Comms; private funding obtained for Breach Security, PacketHop and Pantero; share buy-back announcements from Access Integrated Technologies, Analog Devices, Anaren Microwave, Applied Micro Circuits, Black Box, EchoStar Comms, Equifax, Gartner, Nvidia and Perceptron; a positive result/profit warning from InTechnology; negative results/profit warnings (often veiled) from AIT Group, Dobson Comms, Motorola, National Semiconductor, Portal Software, QAD and Sohu.com; and a withdrawn IPO by Claria. Additionally, MSC Software is to re-state its figures from 2001 onwards.

Locally

Beget (+100%)
Bryant (+100%)
CompuClearing (-25.8%)
CS Holdings (-9.1%)
Digicor (-8.2%)
Elexir (+66.7%)
Faritec (+25%)
FrontRange (-11.4%)
Pinnacle (+8.7%)
Trematon (-9.1%)

Internationally

AIT (-47.7%)
Dobson Comms (-49.6%)
Entrada Networks (-31%)
Geoworks (-41.2%)
Hanaro Telecom (+33.5%)
NDCHealth (-34.2%)
QAD (-32.5%)
Scan-Optics (-39.5%)
Stamp.com (+27.2%)
Synstar (+40.6%)

In terms of indices, the Nasdaq was down 1.1% and the JSE up 3.3% for the week.

The latest edition of Fortune Magazine lists its 'Power` listings. In the Power 25, the most powerful people in business list, Bill Gates (Microsoft) was at number three, Michael Dell (Dell) at six, Sam Palmisano (IBM) at nine, John Chambers (Cisco) and Carly Fiorina (HP) at 16, Craig Barrett (Intel) at 17, Ivan Seidenberg (Verizon) at 19, Brian Roberts (Comcast) at 22, Steve Jobs (Apple) at 24 and Meg Whitman (eBay) at 25. In the European Power 25 listing, Heinrich von Pierer (Siemens) was at number six, Arun Sarin (Vodafone) at seven and Jorma Ollola (Nokia) at eight.

In Asia, Nobuyuki Idei (Sony) was at number two, Lika-Shing (Hutchison Whampoa) at three, Jong-Yong Yun (Samsung) at five, Morris Chang (Taiwan Semiconductor) at eight, Fujio Miterai (Canon) at nine and Azim Premji (Wipro) at 10.

* 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.