E-mail monitoring debate continues

No specific news dominated the international world of IT and telecommunications last week, although at home clarification on the interpretation of the legislation concerning monitoring of e-mail communications within businesses seems to have been the key issue during an exceptionally quiet week worldwide.

* we saw a half-year loss from FrontRange (revenue slightly up);

* a quarterly loss from Spescom Software (formerly Altris Software and Spescom`s US operation, although revenue up); and

* a profit warning from Paracon.

[Local]

Other local news included:

* the appointments of Stephen Blewett as MD of Autopage Cellular, Paul Dinsmore as CEO of WebTec, Wayne Holborn as GM of Kyocera Mita South Africa, and Thuli Zuma as non-executive chairman of CS Holdings;

* Spescom appointed Dictaphone as its worldwide distributor for its DataVoice products;

* the voluntary winding up of Specialised Business Systems, a subsidiary of SBS Africa Holdings;

* KeyTools opened an Australian operation; and

* Lexmark International SA launched its Siyaphambili black economic empowerment initiative.

New strategic business alliances were announced between Drive Control, Philips and Apex Cash Control Systems, and between SBS Africa Holdings and DSX Support Services.

Paul Booth, MD, Global Research Partners

New local distributorships included Openit Solutions taking on the African distributorship for US-based Advanced Toolware, while new strategic business alliances were announced between Drive Control, Philips and Apex Cash Control Systems, and between SBS Africa Holdings and DSX Support Services.

* Reuters may reduce its 43% stake in Tibco Software; and

* SBC Comms may bid for DirecTV, a US satellite group and a subsidiary of Hughes Electronics.

[International]

Other international news included:

* the appointments of James Hubley as CEO of RomTelecom, Ray Mauritsson as CEO of Axis Comms, Mark McMillan as CEO of Insignia, and Solomon Trujillo as CEO of Orange;

* the resignations of Graham Howe, co-founder and deputy CEO of Orange; Richard Noling, CEO of Insignia; and Mark Pearman, CEO of Torex; and

* job loss announcements from CenterSpan Comms, Chartered Semiconductor, Cirrus Logic, Corning, Ericsson, Midway Games, NetManage, Nokia and Reuters.

We saw excellent* figures from Cognizant Technology, InterDigital Comms (back in the black), InVision Technologies and Qsound Labs (back in the black); and very good* numbers from Garmin, Integral Systems, PEC Solutions, Raindance (back in the black), RMH TeleServices (back in the black), ValueClick (back in the black) and Wavecom SA.

Good figures* were recorded by ADI, Ciber, Commonwealth Telephone Enterprises, Cox Comms (back in the black), Dell, ePlus, Intuit, Network Appliance, Rimage, Rogers Comms (back in the black), SCANA, Symbol Technologies and Torex.

Satisfactory* figures were posted by Alphameric (back in the black), Asyst Technologies (back in the black), Cablevision Systems, chinadotcom (back in the black), Comdisco, DG Systems (back in the black), eSpeed (back in the black), First Consulting Group (back in the black), GTC Telecom (back in the black), Image Sensing Systems (back in the black), Internet Gold, Jacada (back in the black), Laser Technology (back in the black), Manhattan Associates, Meta Group (back in the black), Navigant Consulting, Nova Group, Nvidia, Per Se Technologies, Perot Systems, SI International (back in the black), Signal Technology (back in the black), SPX, Syntel, Thomson SA, Transaction Systems Architect, Viacom (back in the black) and Zebra Technologies.

Mediocre* returns came from ADIC, Axis (but back in the black), Bonso Electronics, British Telecom, Brocade Comms Systems, CTG, Daisytek, Hungarian Matav, Infogrames, Insignia Systems, Kontron Mobile Computing, Metro One Telecomms, Nam Tai Electronics, ON Technology, Primal Solutions, Royalblue, S1 (but back in the black), SPSS, Sunair Electronics, Synergon Information Systems (but back in the black), Tecnomatix Technologies, Tele2 AB, Telecom Italia, Tucows and Wireless Facilities.

Very poor results* came from APAC Customer Services, Intelligroup (but back in the black), Nashua (but back in the black), Pomeroy Computer Resources and Zomax (but back in the black).

Losses* were posted by ActivCard SA, AOL Latin America, Applied Materials, Aptimus, August Technology, Auspex, Barrister Global Services Network, Brooktrout, Century Business Services, Cintech, ClickSoftware Technologies, Compel group Plc., Cysive, Digimarc, Delphax Technologies, ECI Telecom, eMerge Interactive, Entravision Comms, Evans & Sutherland, Evolve Software, Fisher Comms, Gemplus, Genus, GrafTech International, Groupe Bull, GSI Commerce, Hungarian Antenna, i3 Mobile, ICT Group, I D Systems, IEC Electronics, IIJ, ImageX, IMSI, Inrange Technologies, Instinet Group, Interactive Intelligence, Intershop Comms AG, Irvine Sensors, Jupitermedia, Keane, Kopin, LTX, Madge Networks, MetaSolv, Mobility Electronics, Mpower Holding, Ncipher, Neoforma, NeoMagic, NEON Systems, netGuru, Netia Holdings SA, NetManage, Netro, Nice Systems, Optibase, Philips Electronics, Preferred Voice, Primus Telecomms, Prologic Management Systems, ProQuest, Raining Data, Rogers Wireless, RWD Technologies, Sagent, Smith Micro, SMTEK International, Sonic Foundry, Spectrum Signal Processing, Stamps.com, Stratus Services Group, Sycamore Networks, Sykes Enterprises, Tangram, Telefonica del Peru, Telenor, TeleTech, Telus, Terremark, Third Wave Technologies, TII Network Technologies, Timeline, TransNet, TriQuint Semiconductor, Ultimate Software, Unova, Vasco, Veeco Instruments, ViaSat, Visual Data, Vyyo, WatchGuard and Western Wireless.

Other financial news included share buy-back announcements from Matsushita Electric, PCTEL, Plantronics and Wavecom SA; shareholders rights plans from 724 Solutions and Vitesse Semiconductor results/profit warnings from Apple, Applied Materials, Cirrus Logic, Daisytek, Invensys, Ncipher, Sega, and Thus.

There were also share split announcements from Millicom International (reverse) and Read-Rite (reverse). Additionally, Qwest Comms is to re-state its 2000 and 2001 revenue.

Locally

AST (-26.3%)
Cape Empowerment Trust (-20%)
Cycad (-25%)
FrontRange (+12.5%)
Idion (-12.6%)
Infowave (+50%)
Intervid (-17.1%)
MGX (-23.7%)
Prism (-12.5%)
Sekunjalo (-18%)

Internationally

Auspex Systems (-65.2%)
Butler International (+40%)
DA Consulting Group (-46.4%)
Dice (+55.6%)
Getronics (-52.9%)
Invensys (-53.2%)
Micro Component Technology (-35%)
NCD (+33.3%)
Spirent (-30.6%)
Vasco Data Security (+46.3%)

Microsoft, as one of the leaders within the IT industry, is constantly in the news and fighting off challenges from its competitors and various other institutions. As much of the US/Department of Justice activity dies down, the Java issue has raised its head and is currently being 'resolved`.

However, the new focus now seems to have shifted to Europe, where the offensive is oriented around the possible violation of European anti-trust laws with respect to Windows XP. Watch this space!

* N.B.

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.