Comparex controversy

The lobbying re WorldCom`s survival and the flood of quarterly results dominated the international world of IT and telecommunications last week.

There were indications of a major storm brewing re the Comparex Europe MBO, despite an increased offer on the table.

Paul Booth, MD, Global Research Partners

At home, the Comparex management buy-out (MBO) row and the Tel.Com Africa 2002 conference/exhibition stole much of the local ICT headline space.

• .         we saw satisfactory year-end figures from Set Point Technology Holdings (revenue down but back in the black);
• .         satisfactory interim numbers from Infowave;
• .         a full-year loss by the State IT Agency;
• .         a `veiled profit warning` from AST; and
• .         the suspension of the listing of MB Technology shares.

[Local]

Other local news included:

• .         the indications of a major storm brewing re the Comparex Europe MBO, despite an increased offer on the table;
• .         government`s announcement of an empowerment investigation into the IT industry in SA;
• .         Prism`s announcement that it is no longer looking for a `partner` but proceeding alone;
• .         the emergence of Alcatel SA following the disposal by Altech of its 40% share in Alcatel Altech Telecoms;
• .         the resignations of Pierre Joubert as CEO of Connection Group and Johann Kunz as MD of CS IT Solutions;
• .         the appointment of Toni Fourie as CEO of Connection Group; and
• .         Azisa, ITWeb, Namitech and Psitek making it as finalists for the SA Non-listed Company Awards.

• .         we saw the creation of an Autonomic Computing unit by IBM; and
• .         Corio, an ASP, has been declared the winner in the 2002 Deloitte & Touche Technology Fast 500.

Additionally, look out for the outcome of the intense lobbying taking place with the Federal Communications Commission to prevent WorldCom coming out of bankruptcy proceedings debt-free; and the possible acquisition of Manugistics.

[International]

Other international news included:

• .         the appointments of Joe Cowan as president and CEO of EXE Technologies, Stuart Graham as president and CEO of Skanska AB, Jeffrey Graves as president and CEO of Kemet, Douglas Jacobs as president and CEO of Lantern Comms, Douglas Thompson as CEO of Open-c Solutions and Ken Veluti as president and COO of Teledon Solutions;
• .         the resignation of Dana Olsen as COO of ACI Telecentrics; and
• .         job loss announcements from Adobe, Chartered Semiconductor, Eastman Kodak, Marconi, MatrixOne, Pegasystems, StorageNetworks, TerraLycos and Texas Instruments.

We saw excellent figures from Benchmark Electronics (back in the black), Overture Services, Pctel, PEC Solutions, SafeNet (back in the black), Silicon Labs (back in the black), Wavecom and WebSense.

Good numbers were recorded by ACS, Arris (back in the black), Cabot Microelectronics, CACI, CGI, Ciber (back in the black), Comms Systems (back in the black), Cray (back in the black), CyberGuard (back in the black), Cymer, DataFlash (back in the black), Diebold, Documentum (back in the black), DSP Group, Embarcadero Technologies (back in the black), Emulex, EPIQ Systems, Fargo Electronics, Firstwave Technologies, Fiserv, GTSI, ICOS Vision Systems (back in the black), ICT Group, IDX Systems (back in the black) Interactive Data, Insight Enterprises, Intersil, InTEST (back in the black), Logitech, Mobius Management Systems, Nassda, Navarre, Netsmart, Nextel Comms (back in the black), OSI Systems, PC Mall, PDF Solutions (back in the black), PEC Solutions, Power Integrations, Precise Software Solutions, Radiant Systems (back in the black), RadVision, Rainbow Technologies (back in the black), Ramtron (back in the black), Rimage, ScanSource, SPX, ST Microelectronics, SunGard Data Systems, Sypris Solutions, Tekelec (back in the black), Texas Instruments (back in the black), Trend Micro, Varian Semiconductor (back in the black) and Wanadoo.

Satisfactory numbers were posted by 3M, Actel (back in the black), Acxiom, Alltel, Altera, ANSYS, Atlantic Data Services (back in the black), Autonomy, BCE (back in the black), Borland, Boston Comms Group (back in the black), Castelle, CenturyTel, CompuCom, Consolidated Graphics, Crystal Reports, Dassault Systemes, Datastream Systems (back in the black), DST Systems, Eastman Kodak, ECTel, Elcoteq (back in the black), Elevon, Flextronics (back in the black), Foundry Networks, GCI, Getty Images (back in the black), Global Imaging Systems, Harte-Hanks, Hyperion, Imation, InterTAN, Key Tronic (back in the black), Lexmark, Manhattan Associates, Metro One, Nashua (back in the black), MicroStrategy, Nortech Systems, Open Text, Pegasystems, Pinnacle Data Systems, ProQuest (back in the black), Raytheon (back in the black), Scala Business Solutions, Sonera (back in the black), Storage Technology, Syntel, Technitrol (back in the black), Teledyne Technologies, Telstra, Trimble (back in the black), Valassis, Veritas Software (back in the black) and Verizon Comms.

Mediocre returns came from ACE*COMM (but back in the black), AMX (but back in the black), Anixter (but back in the black), AT&T, BellSouth, Bisys, Business Objects, Cingular Wireless, Computer Programs & Systems, Comshare (but back in the black), Covansys, Convergys, Encore Wire, ESS Technology, HCL Technologies, HickoryTech, IKON Office Solutions (but back in the black), Inet, JDA Software, Keane, KLA-Tencor, Lightbridge, MCSi, Microchip Technology, NCR (but back in the black), NEC (but back in the black), Presstek (but back in the black), SBC Comms, SCT, Synaptics, Taiwan Semiconductor Manufacturing, Technology Solutions Company and Transcat (but back in the black), Universal Electronics and Xerox (but back in the black).

Very poor results were posted by AOL Time Warner (but back in the black), AsiaInfo Holdings, AVX (but back in the black), Axcelis (but back in the black), Cobra Electronics (but back in the black), Digital River (but back in the black), Interlink Electronics, Novadigm (back in the black), Par Technology, PC Connection, Tangram Enterprise Solutions (but back in the black - just), Westell Technologies and ZiLOG (back in the black).

Losses were reported by 3D Systems, 724 Solutions, Actuate, Adaptec, Adept Technology, Aetrium, Agere Systems, Alaska Comms Systems, Alliance Fiber Optic Products, Alliance Semiconductor, AlphaNet Solutions, Alterian, Alteris, Amazon.com, Anadigics, Anaren Microwave, Andrew, Applix, Apropos Technology, Aptimus, ARC International, Ariba, Arrow Electronics, Art Technology Group, Ascential Software, Aspen Technology, Asyst Technologies, AT&T Wireless, Audio Codes, August Technology, Auspex, Avanex, AvantGo, Avaya, Avici, Avistar Comms, Avnet, AXT, BackWeb Technologies, BindView, Blue Martini Software, BMC Software, Brio Software, Broadvision, BSQUARE, Cadmus Comms, California Micro, Caminus, Carrier Access, CDI, Centillium Comms, Centra Software, Ceragon Networks, Chartered Semiconductor, CheckFree, Chordiant Software, Ciprico, Cirrus Logic, Click2learn, ClickAction, CMGI, Cohu, Colt Telecom, Com21, Commerce One, Computer Access Technology, Computer Associates, Conexant Systems, Copper Mountain Networks, Corillian, Corvis, CoSine Comms, Creative Technology, CT Comms, CTS, Data I/O, Datakey, Datum, Dialog Semiconductor, Digimarc, Digital Impact, Digital Insight, Digitas, Docent, Dover, Edgewater Technology, Eloquent, Embratel, Endwave, Entrust, Epicor, ePresence, Exabyte, Exar, EXE Technologies, Extended Systems, Forrester Research, GrafTech, GRIC Comms, Grupo Iusacell SA de CV, GSI Commerce, Hifn, Hummingbird, Hypercom, I-Many, i3 Mobile, iBasis, Ibis Technology, Identix, Ilog SA, IDT, InFocus, Information Holdings, InfoNow, InfoSpace, InfoVista, Infowave, Inktomi, Inrange Technologies, Intentia, Inter-Tel, Interactive Intelligence, Intevac, Intrinsyc, ITXC, Jacada, JDS Uniphase, Kemet, Komag, Larscom, Lattice Semiconductor, Lexant, LSI Logic, Lucent Technologies, Luminex, M-Systems, Marimba, MatrixOne, Maxtor, McLeodUSA, MCT, Metalink, MetaSolv, Micrel, Micro Linear, MIPS Technologies, MRV, MSC.Software, MSL, Multex, Nanometrics, Nanophase Technologies, Net2phone, Netegrity, NetIQ, NetPerceptions, NexPrise, New Focus, New Horizons, Next Level Comms, Nuance, ON Semiconductor, On2 Technologies, Openwave, Oplink Comms, Patsystems, Peak International, PECO II, Pericom Semiconductor, Persistence Software, Photon Dynamics, Pinnacle Systems, Pivotal, Planar, Plexus, Power-One, Predictive Systems, Quest Software, Quovadx, Radcom, Raindance, Razorfish. RealNetworks, RiT Technologies, Roxio, S&T Systems Integration and Technology Distribution AG, Sagent, Sapient, SCM Microsystems, SeeBeyond, Selectica, SGI, Sierra Wireless, Signal Technology, Simtrol, Sipex, Sirenza Microdevices, Smith Micro, Socket Comms, SonicWALL, SoundView Technology, SST, Stamps.com, Stellent, Superior Consultant, Superscape, Switchboard, Synplicity, Syntellect, Tecnomatix, TeleComms Systems, Telia, Toshiba, Trident Microsystems, Tripos, TriQuint Semiconductor, Triton PCS, TriZetto, Tumbleweed Comms, Ultimate Software, USA Interactive, Vasco, Vastera, VerticalNet, VeriSign, Vicinity, Vina Technologies, Vitria, Vixel, VocalTec Comms, WatchGuard, WebMethods, WJ Comms, Witness Systems and Zomax.

Other financial news included share buy-back announcements from Ariba, Business Objects, Convergys, Docent, Getty Images, Micros-To-Mainframes, Nokia, Smith Micro and Verilink; profit warnings from AMSI, Au Optronics, Chartered Semiconductor, Focus Solutions Group, Marconi, NEC, Sykes Enterprises, Technology Solutions Company, Texas Instruments, Top Image Systems, Toshiba and Verizon Comms; share split announcements from Docent (reverse), Novatel Wireless (reverse) and Orckit Comms (reverse); and a `rights issue` announcement from ScanSoft. Additionally, AOL, Asia Global Crossing and Global Crossing are re-stating their results; and the SEC has opened a probe into Gemstar`s accounting.

Locally

Aqua Online (+66.7%)
Cape Empowerment Trust (-40%)
Crux (+200%)
CSH (+20.3%)
Elexir (-33.3%)
Faritec (-21.4%)
Intervid (-26.3%)
Pinnacle (-20%)
Prism (+28.6%)
Sethold (+20%)
Vesta (-60%)

Internationally

Butler International (+101.9%)
DA Consulting Group (+140%)
Digital Lightwave (+63.9%)
Dobson Comms (+150%)
Enherent (+87.5%)
Geoworks (+100%)
Intershop (+64.6%)
Leaf Wireless (+72.7%)
Nortel Networks (+81%)
Proxim (+105%)

Finance Week has issued its annual ratings and rankings of shares on the JSE. Of note from an ICT perspective is Venfin at number 12, Dimension Data at 28 and M-Cell at 42 in the 100 most popular shares in unit trust portfolios listing.

* 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.

• .         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.