DiData, Ord scoop top Business Times accolades

The acquisition of SiByte by Broadcom, the re-structuring news from British Telecom and various multi-billion telecomms consolidations in Europe dominated the international world of information technology & telecommunications last week; whilst at home the results from Dimension Data and Datatec stole much of the local headline space.

The British Telecom re-structuring includes plans to create a new network company, that will focus on serving competing telecom operators and services providers, including BT`s own retail divisions.

Paul Booth, MD, Global Research Partners

On the local scene, we saw a full-year loss from Dimension Data (but turnover well up); good interim numbers from Streamworks (but margins heavily squeezed); satisfactory interim figures from Infowave (back in the black -just, and margins well up); and disappointing half-year numbers from Datatec (revenue well up but income well down).

[Local]

Other local news included:

• the appointment of Darryl Dennis as the first full-time CEO of The Black IT Forum;
• the announcement of a major rationalisation at LiveTechnology (41% owned by MB Technologies);
• the launch of Namitech, a new entity incorporating BDM Technologies and the various IT divisions of Nampak;
• the closure of infor business solutions SA (the second local ERP subsidiary closure this month);
• the creation of Source Enterprise Consulting SA, a JV between South African Systems Integration (Pty) Ltd and UK-based Source Enterprise Consulting Ltd, a UK storage consultancy;
• and the announcements by Datatec that it hopes its Weston USA-based company would be listed on Nasdaq by next March, that its UK-based entities, Logical and Mason, would delay their separate London listings until later next year, and that it intended to combine UUNet with other internal assets ready for a listing on the JSE.

• the name change of GuruNet to Atomica;
• the news that AT&T is planning major, non-strategic asset sales over the next few months, in order to reduce its debt load, currently standing at over $62 billion;
• the re-structuring of British Telecom that includes the public offering of shares in its wireless business;
• and the rumours that Comms group NTL is talking with Dutch cable operator Caesma NV, owned by France Telecom, regarding an acquisition, possibly valued at over $2 billion.

The British Telecom re-structuring includes plans to create a new network company, that will focus on serving competing telecom operators and services providers, including BT`s own retail divisions. It is intended to list up to 25% of this entity. Additionally, it is planned to list up to 25% of BT Wireless, BT Ignite (broadband IP services), and Yell (directories and e-commerce).

[International]

Other international news included:

• the appointments of Helge Bornmann as Chairman and CEO of Pick Comms, James Green as CEO of GiantBear, Ray Lane (ex-Oracle) to the board of Quest Software, Teddy Lu as Chairman of Acer, Anthony Nuzzo as CEO of Engage and Johan Wall as CEO of Framfab AB;
• resignations of Jonas Bigersson, CEO of Framfab AB, Pol Haupsie, co-founder, co-chairman and co-MD of Lernout & Haupsie, Jo Lernout, co-founder, co-chairman and co-MD of Lernout & Haupsie, Fred Lin, Chairman of Acer and Paul Schaut, President and CEO of Engage; and job loss announcements by 24/7 Media, CAIS Internet, Network Access Solutions, PSC, Teligent and US interactive.

We saw excellent figures from CFW Comms, Cisco, Infineon Technologies AG, Innodata and Nvidia.

Losses however came from 24/7 Media, 360networks, Active Voice, Adelphia Business Solutions, Aegis Comms, Altigen Comms, AML Comms, AOL Latin America, APA Optics, Applied Imaging, Arch Wireless, Asia Global Crossing, Baltimore Technologies, Birch Telecom, Bitstream, Bookham Technology, Bright Station Plc., Cablevision, CAIS Internet, Capsule Comms, Carrier1 International, Classic Comms, Comdisco, Conductus, Cotelligent, Cybernet, DACG Consulting Group, Data Critical, DataWave Systems, Digi International, Digital Island, Dobson Comms, DSL.net, Elcom International, Equant NV, Euphonix, Exigent, F-Secure, Faro Technologies, GCI, General DataComm Industries, GlobalNet, Golden Telecom, IFS AB, Infobank Holdings Plc., Infowave, Insight Comms, Insignia Solutions, InteliData, Intelispan, Intelligroup, Internet Gold, Interspeed, IP Axess, JMAR Technologies, Lightning Rod Software, Loral Space & Comms, Lycos Europe, Meta Group, MetaCreations, Mitek, Mobilcom, MTS Management Solutions, NetObjects, Netpliance, NetStore Plc., NetVoice Technologies, Network Engines, NQL, Nx Networks, OfficeMax, On2, On Track Innovations, OneLink, OnLink Comms, ORBIT/FR, OTI, ParkerVision, Paxton Comms, Pegasus Comms, Pegasystems, Prophet 21, Rebus Interhouse Ltd., Retailix, RSL Comms, S1, Safeguard Scientifics, SBA Comms, Scan-Optics, ScanSoft, Sedona, SEEC, SeraNova, SoftQuad Software, Spatial, SpectraSite Holdings, Startec Global Comms, Superscape plc., Systemax, T-Online International AG, Tekgraf, Teligent, Telescan, TeleSpectrum, Time Warner Telecom, tom.com, TouchStone Software, Transcrypt International, US Interactive, US Unwired, Versatel Telecom, Vialog, Viatel, VoiceStream Wireless, VSI Enterprises, WebLink Wireless, Winstar Comms, WM-Data AB, World Access and WorldQuest Networks.

Good numbers were recorded by AM Comms (back in the black), Cadcentre Group Plc., CII Technologies, Comcast, Dataram, Dolphin Telecom Plc., DRS Technologies, Eltek (back in the black), Hummingbird, Imagination Technologies Group Plc., Infonet (back in the black), Kaneb Services, Mascot Systems, Millicom International Cellular SA (back in the black), Nam Tai Electronics, NetCom AB, NTL, Pomeroy Computer Resources, Radstone Technology Plc., Siemens, Telia and ViaSat; and satisfactory ones by ASA International, BAE Systems Canada, Catapult Comms, Dell, Emerson Electric, France Telecom, GTSI, Micro General (back in the black) and Netsmart.

Mediocre returns came from Acorn Holding, Alysis Technologies, British Telecom, CGI Group, Daisytek International, ECI Telecom, Magic Software Enterprises, Merrimac, Nova, NUR Macroprinters, Philippine Long Distance Telephone, Pixar and Torridon Plc; whilst very poor results came from Innovex, NetCreations, Science Dynamics and Teltronics.

Other financial news included profit warnings from 24/7 Media, Network Engines, Infineon, Lucent Technologies, Solectron, Turnstone Systems and VA Linux; share split announcements from Manugistics and On-Point Technology Systems (reverse); a delayed IPO from ClearCommerce (e-commerce), and good IPOs from Computer Access Technology and Transmeta (software configurable processor technology). Additionally, Lernout & Haupsie expect to re-state their financial numbers for 1998, 1999 and the first half of 2000, and these are likely to show significantly reduced income. Their shares have also been suspended on Nasdaq.

Locally

C-Tech (-40%)
Cape Empowerment Trust (-33.3%)
Casey (-25%), CIH (+100%)
Explorer (-33.3%)
I-Tech (-25%)
Infowave (-30.8%)
Micrologix (+50%)
Sethold (+25%)
Streamworks (+35.4%)
Synergy (-25%)
Vesta (-25.9%)

Internationally

Active Voice (+39.9%)
Digi International (+30%)
Elantec Semiconductor (-33.3%)
Equinox Systems (+34.3%)
Integrated Device Technology (-35.5%)
Internet.com (-30%)
Magic Software enterprises (-37%)
Red Hat (-32.4%)
Redback Networks (-30.9%)
VA Linux (-52.1%)
Vignette (-30.2%)

Last week was definitely a Dimension Data week, with Sunday Times rating the company as Business Times Top Company and its chairman Jeremy Ord as Businessman of the Year. Additionally, and perhaps surprisingly, three other IT companies were in the Business Times Top Ten with Datatec at No 4, MGX at No 8 and Comparex as No 10.