Dell defies economic trends

The ongoing SCO/Linux intellectual property activities and the very good results from Dell that defy most trends dominated the international world of IT and telecommunications last week.

A new strategic business alliance was announced between PM Tech Holdings and Ikwezi IT.

Paul Booth, MD, Global Research Partners

At home, the Johnnic unbundling and the contrasting results of Altron and Dimension Data stole much of the local headline ICT space.

* we saw good full year numbers from Altron (revenue up but earnings well up);

* an interim loss from Dimension Data (revenue also down);

* a Q2 loss from Spescom Software, Spescom`s US arm (but revenue up); and

* the formal terminations, at long last, of the listings of Accord Technologies and Core Holdings with effect from 2 June. Additionally, the JSE has advised that it also intends to formally terminate the listings of Planit Investment Holdings, Prada Technologies and UAM with effect from 2 June.

Other local news included:

* a share re-purchase announcement from Digicore;

* AST announced a proposed recapitalisation of the company;

* the appointments of Bill Padfield as CEO of Datacraft Asia (part of the Dimension Data Group) and Vincent Scholtz as CEO of Grintek Comms Systems;

* the resignation of Ron Cattell, CEO of Datacraft Asia;

* Johnnic Comms unbundled most of its shareholding in the MTN Group;

* four bidders were short-listed for the second national telecoms operator, the fifth bid from China not materialising;

* a possible overhaul for SA`s telecommunications policies; and

* Exhibitions for Africa announced that Computer Faire will combine with the Tel.com conference/exhibition next year under a new name, FuturEX.

New local distributorships included that of Esquire Technologies for the full range of CTX products and that of Ximian by local Linux solutions provider Obsidian Systems.

A new strategic business alliance was announced between PM Tech Holdings and Ikwezi IT.

* the Australian government delayed its sell-off of its remaining 50.1% of Telstra;

* the break-up of the Eastman/HP joint venture re the development of retail photo finishing for digital camera photographers; and

* SCO suspended sales of its SCO Linux operating system.

Additionally, look out for Roxio`s acquisition of the music units of Sony and Vivendi Universal SA.

International acquisitions, mergers, joint ventures etc (see attachment).

Other international news included:

* the appointments of Barry Borden as CEO of Fastnet, Richard Brock as chairman of Firstwave Technologies, Frank Fitzsimmonds as CEO of Iridian Technologies, Gary Forsee as chairman of Sprint, Chris Horn as CEO of Iona Technologies, Kevin Melia as chairman of Iona Technologies, Roman Ptakowski as president of Innovative Solutions & Support, David Simmons as president of Firstwave Technologies, Lucy Woods as CEO of Viatel, and Wang Yan as CEO of Sina;

* the resignations of Peter Caswell as president and CEO of Advent Software, William Esrey as chairman of Sprint, Stephen Hurly as CEO of Fastnet, Daniel Mao as CEO of Sina, and Alan Schwartz as chairman of Rohn Industries;

* the retirement of James Porter as chairman of Firstwave Technologies; and

* job loss announcements from Credence Systems, MIPS Technologies and TDC.

Excellent* figures were posted by D&E Comms (back in the black), Faro Technologies (back in the black), iCAD (back in the black), Integral Systems, Tenfold (back in the black), YAK Comms and YP.Net.

Very good* numbers were announced by DAG Media (back in the black), DRS Technologies, InterDigital, Intuit and SRS Labs (back in the black).

Good figures* were recorded by Analog Devices, Aspective (back in the black), DAG Media (back in the black), Daou Systems (back in the black), Dell, Elmos Semiconductor, Group 1 Software, KPN (back in the black), Network Appliance, OAO Technology Solutions, RCN (back in the black) and SSA Global Technologies.

Satisfactory* results were posted by ADIC, Atos Origin, BEA Systems, Cognigen Networks (back in the black), Comdisco, CSC, Deutsche Telekom (back in the black), Dicom Group Plc., Hector Comms (back in the black), IBSS, Key Components (back in the black), NTT (back in the black), Olympus Optical, Optelecom, Orbotech (back in the black), Philippine Long Distance Telephone, Rural cellular (back in the black), Teknowledge, Telefonica Moviles SA and Xfone.

Mediocre* returns came from Electronic Systems Technology, GTC Telecom (but back in the black), Hanaro Telecom, Infodata (but back in the black), Internet Gold, NetNation, Niku, Pacific Internet, Pomeroy Computer Resources, Prosoft Training (but back in the black), Qsound Logic, Swisscom AG and Telefonica.

Very poor results* came from All American Semiconductor, OfficeMax and Trio-Tech International (but back in the black).

Losses* were posted by Access Worldwide, ACT Teleconferencing, ACTV, Acxiom, AdStar, Aegis Comms Group, AESP, AirNet Comms, Aladdin Systems, Alamosa Holdings, Allegiance Telecom, AlphaNet Solutions, Alvarion, American Superconductor, Ampex, Amtech Systems, Apogee Technology, Applied Digital Solutions, Applied Materials, Artemis, ASA International, Astea International, ATX Comms, Avatech Solutions, Block Comms, Bogen Comms, BrightStar IT Group, Brocade, Cabletel, Cablevision, Camtek, Catalyst International, Cedara Software, Cimatron, Cimetrix, Clarus, Click Commerce, CNT, CompleTel Europe NV, Computer Associates, Covad Comms, Data Systems and Software, Davel Comms, DDi, deltathree, Digex, Digital Fusion, Digital Power, DSL.net, ECI Telecom, enherent, Equinix, Essex, Fastnet, FiberMark, Focal Comms, Frontline Comms, FullNet, Furukawa Electric, Gemstar-TV Guide, Gensym, GigaMedia, Global Axcess, Globalstar, Globecomm Systems, GoAmerica, GraphOn, GSE Systems, Horizon PCS, Hytek Microsystems, i3 Mobile, I-Sector, ImageMax, ImageWare Systems, Innodata, Innovative Software Technologies, Insignia Solutions, Integrated Information Systems, Intelidata, Intelli-Check, Intelligent Environments, Interactive Systems Worldwide, ION Networks, ISCO International, JMAR Technologies, Knology, Lason, Leap Wireless International, LOGIC Devices, Loral, Loudeye, LTX, Mapics, MasTec, Mattson Technology, Merrimac Industries, MicroTel, MSX International, Multilink Technology, National Datacomputer, NCTI, Nematron, NeoMagic, Net Servicos, NetLojix Comms, NICE Systems, Nikon, Novo Networks, nStor Technologies, NTELOS, NTL, Nu Horizon Electronics, Nucentrix Broadband Networks, OneClickHR, ORBIT/FR, P-Com, ParkerVision, Parlex, Pegasus Comms, PlanGraphics, Porta Systems, Pumatech, Rare Medium Group, Sagent, Sapiens International, Satmex, SBA Comms, Scitex, Sedona, Sentry Technology, SMTEK International, Speedcom, Storage Computer, Storage Engine, Superconductive Components, Sycamore Networks, Synavant, T-Online, TACT, Telebyte, Telenetics, Teltronics, TeraForce Technology, TII Network Technologies, Top Image Systems, TransNet, Tripath Technology, TTI Team Telecom, Ultradata Systems, UnitedGlobalCom, US Unwired, V-ONE, Versatile Mobile, Verso Technologies, VIA NET.WORKS, viaLink, ViewCast, Visual Data, Voxware, Vyyo, Wave Systems, XO Comms, Xybernaut and Zi.

Other financial news included share buy-back announcements from Kronos, Matsushita Electric, Mercury Computer Systems, Network Appliances, Novadigm, Pomeroy Computer Resources and TransNet; shareholders rights plans from Liberate Technologies; results/profit warnings (often veiled) from Filtronic and OfficeMax; share split announcements from Ampex (reverse) and SciQuest (reverse); a planned IPO in mid-2003 from Brillian, a spin-off from Three-Five systems; and a very good IPO from IPayment, a payment processing company and the first IPO to debut for more than two months.

Additionally, EDS is being subjected to a second probe by the SEC; Applix is to re-state some of its financial statements; and Allegiance Telecom has applied for Chapter 11 protection.

Locally

AST (+22.2%)

Cycad (-33.3%)

Datatec (+35.8%)

Infowave (+25%)

Intervid (-14.3%)

Labat Africa (-12.8%)

MGX (+25%)

Set Point Technologies (+15.4%)

Spescom (+11.9%)

Stella Vista (-10%)

Internationally

Avanex (+107.1%)

BackWeb Technologies (+78.1%)

Brio (+64%)

ClickSoftware Technologies (+308%)

Daisytek (+95.2%)

eGain Comms (+55%)

Paxson Comms (+61.7%)

Proxim (+55.4%)

Read-Rite (+58.8%)

VocalTec Comms (+149.2%)

Last week saw the launch of a new SME survey by World Wide Worx. The results are particularly interesting from an IT perspective since it is this sector and many of the unlisted ICT companies in it that are going to be very important for our economy over the coming months.

* 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.