DiData receives cash injection

The Logica/CMG merger and yet another acquisition by IBM dominated the international world of IT and telecommunications last week.

Technology companies didn`t fare too well on the Sunday Times Top 100 Companies listing.

Paul Booth, MD, Global Research Partners

At home, the ongoing Telkom SA/Telcordia fight and the $100 million cash injection by Venfin in Dimension Data stole much of the local headline ICT space.

• We saw the official de-listing of The Internet Gaming Corporation.

• the resignation of Johan Roets, founder and group CEO of The IQ Business Group;

• the appointment of Chris Sinclair as interim CEO of The IQ Business Group;

• the name change of Ultimate Connection to UCS Software;

• the cash injection of $100 million by Venfin into Dimension Data, with the option of turning it into a 12.3% stake; and

• the statement from the Independent Communications Authority of SA indicating that it hopes to finalise the licensing of the second national telecoms operator (SNO) by March.

[Local]

• we saw the sell-off by Computer Associates of its banking solutions group to an investor consortium, which is establishing a new company around it, headed up by Jim Schaper, former CEO of Dun and Bradstreet Software; and

• the name change of Edge Technology to Axtive.

Additionally, Logica (60%) and CMG (40%) are to merge (as predicted) to create one of the world`s largest (sixth) ICT services companies, last year`s combined revenue was in excess of $3.1 billion. There was also the sell-off by Telecom Italia of half its stake in Telekom Austria.

[International]

Other international news included:

• the

  appointments

  of Ronald Daly as CEO of Oce-USA, Jack Johnson as president and CEO of Active IQ, Robert Lee as president and CEO of Accela, Kai-Uwe Riche as CEO of Deutsche Telekom, and Stan Sigman as president and CEO of Cingular;

• the

  retirement

  of Giovanni Pelizzari, CEO of Oce-USA; and

• job loss announcements

  from AMD, Applied Materials, C-Cor.net, Corel, Entegris, Evans & Sutherland, Getronics, JDA Software, Logica/CMG, QuickLogic, WM-data AB and Xerox.

We saw excellent* figures from InterCept, Pixar and Sonic Solutions (back in the black).

Good numbers* were recorded by Apogee Technology (back in the black), Aveva Group, Avidyn (back in the black), Carphone Warehouse, CGI Group, Datatec Systems (back in the black), DRS Technologies, Franklin Electronic Publishers (back in the black), Glentel (back in the black), Golden Telecom (back in the black), Hutchinson Technology (back in the black), INSCI, Korea Telecomms, ManTech International (back in the black), NTT Data, Philippine Long Distance Telephone, Qualcomm (back in the black), Radstone Technology (back in the black), RiverDeep, Scan-Optics (back in the black), SRA, SurfControl (back in the black), Tier Technologies and Univision Comms.

Satisfactory* figures were posted by Alliance Imaging, Bogen Comms International (back in the black), British Telecom, Charter Comms, Compass Knowledge (back in the black), Computer Sciences, DG Systems (back in the black), Elbit Systems, GCI, Imagistics, Merrimac (back in the black), Orbit International, Perceptron (back in the black), SI Technologies (back in the black), Singapore Telecomms, Sourcecorp, Telecom Italia SpA (back in the black), United Online (back in the black), Veridian and XKO (back in the black).

Mediocre* returns came from 1mage Software, Advant-e, Arch Wireless, Brightpoint (but back in the black), Cisco (but back in the black), Coherent (but back in the black), Commonwealth Telephone Enterprises, DataWave, Heidelberg, iGate (but back in the black), iMergent, Internet America, Internet Capital Group (but back in the black), KDDI, MasTec (but back in the black), Optical Comms Products (but back in the black), PinkRoccade, Plaut AG, Pomeroy Computer Resources, Prophet 21, Qualstar, Radiologix, Tele Centro Oeste Celular, Wireless Facilities (but back in the black) and Wireless Telecom Group.

Very poor results* were posted by ACS-Tech80 (but back in the black), Allin, Intelligroup, LaBarge, Metrologic (but back in the black), NTT DoCoMo, Tii Network Technologies (but back in the black), TransNet and Wegener.

Losses* came from ActivCard, Aegis Comms Group, Aether Systems, Aladdin Knowledge Systems, Alamosa, Alvarion, Amdocs, American Superconductor, AOL Latin America, Applied Microsystems, Articon Integralis AG, AT&T Canada, Aware, Axsys Technologies, Brasil Telecom SA, Braun Consulting, Broadview Media, Cablevision Systems, Choice One Comms, Citizens Comms, ClickSoftware, CommScope, Covad Comms, Critical Path, Daisytek, Daleen, Digi International, divine, DSL.net, Elcom International, Equinix, Essex, Fast, Search & Transfer ASA, First Virtual Comms, Gadzoox Networks, Giga-tronics, Global Crossing, Globecomm Systems, Hytek, I/NET, ImageWare Systems, ImageX, Infineon Technologies AG, Infocrossing, Infonet, Innodata, Innovex, Insignia Solutions, InteliData, InterWAVE, Jupitermedia, Kewill Systems, Lantronix, Loral, Madge Networks, Mattson Technology, Maxwell Technologies, MediaCom Comms, Meta Group, Metatec, Microcell, MTS, NetEase, Netia Holdings SA, Netopia, Norsat International, Notify Technology, NovAtel, NTELOS, Nvidia, Primal, Pro Tech Comms, RCN, Register.com, Reptron Electronics, RWD Technologies, Safeguard, Sand Technology, SBA Comms, Semitool, SINA, SMTEK International, SONICblue, SPEEDCOM Wireless, SSP Solutions, Superconductor Technologies, Systemax, TACT, Telaxis Comms, Tele Atlas NV, Telefonica Moviles SA, Telewest, Telus, Temenos, Terra Lycos, TMSSequoia, Touch America, Tripath Technology, US LEC, Veramark Technologies, Versatile Mobile Systems, Verso, viaLink, Vyyo, Webb Interactive Services, Western Wireless, WM-data AB, Xanser and Zarlink Semiconductor.

Other financial news included share buy-back announcements from Autonomy, Plantronics, Radware, Sega and Telular; profit warnings from Adelphia Comms, AMD, Autodesk, British Telecom, C-Cor.net, Cablevision Systems, Circuit City, CSC, Furukawa Electric, Getronics, Infineon, Intercept, KDDI, Mosel Vitelic, NTT DoCoMo, Plaut AG, Semitool, Sourcecorp and Viisage Technology; share split announcements from Avici (reverse), Group 1 Software and Level 8 Systems (reverse); and an IPO from China Telcom that is expected to raise $1.43 billion.

Additionally, WorldCom re-statements of its accounts could now top $9 billion; and China Telecom has scaled-down its IPO re-launch.

Locally

Casey (+200%)
CCG (+50%)
Connection Group (+421.7%)
DNA (+22.6%)
Elexir (-50%)
FrontRange (+18.4%)
Infowave (-22.5%)
Intervid (-14.3%)
OSI (-40%)
Pinnacle (-46.7%)

Internationally

Arris Group (+57.6%)
Broadvision (+55.8%)
Com21 (+70%)
DDi (+82.4%)
Focal Comms (+140.6%)
Internet America (+55%)
Leap Wireless (+66.7%)
Millicom International Cellular (+57.4%)
PCD (+100%)
Rural Cellular (+57.7%)
Syntellect (+308.8%)

The Sunday Times has issued its Top 100 Companies listing. Technology companies haven`t fared well, with Reunert at 29, Allied Technologies at 37, Grintek at 40, M-Cell at 66, FrontRange at 71 and Allied Electronics at 93.

Furthermore, the next few weeks/months will be awaited with keen interest since we have the SNO decision to come; the public listing of Telkom SA, both locally and overseas; and Beget Holdings` listing on the JSE, the first true local technology listing since August 2000.

We will also see ERP.com change sector from the venture capital board to the main board, the first company to have served its apprenticeship fully from being a start-up organisation through to a fully-fledged listed entity, and of course, achieving this through the most difficult period ever witnessed within the IT industry.

* 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.