EU warning for Microsoft

The European Union`s warning to Microsoft dominated the international ICT scene last week. Orascom Telecom and Red Hat posted very good quarterly numbers, while Accenture and Tibco Software reported disappointing figures.

On the local scene, there were several empowerment deals and a handful of financial results.

* The European Commission warned Microsoft that its Vista operating system may fall foul of competition rules.

* Excellent year-end numbers from Cape Empowerment Trust, with profit more than double the figure for 2004.
* Very good year-end figures from Dynamic Cables, with revenue up 30% and profit up well over 150%; and Square One Solutions, with revenue up over 40% and profits up over 100%.
* A year-end loss from Beget Holdings, although revenue up 150%.
* Excellent interim results from Integrear, with revenue up over 75% and back in the black.
* Good interim numbers from Metrofile, with revenue up 16% and back in the black.
* Striata purchased eMessageX, a provider of e-mail-based communications services.
* Infowave purchased 63.8% of Apply IT, a niche software and services company.
* The 30% investment by Royal Bafokeng Capital in Zaptronix. The latter will also transfer to AltX from the JSE`s venture capital sector.
* The 26% investment by Leshume Solutions in Knowledge Integration Dynamics.
* The 35% investment by Lietsiso Mohapeloa in Channel Data, a technology distributor.
* The acquisition of the business of Alliance Consulting`s Southwest region by Logicalis, part of the Datatec Group.
* The merger of Cape Town-based Clickatell, a mobile messaging provider, with US-based MultiMode, a similar operation.
* The buy-out of Despec Africa FZE, a supplies focused wholesaler, by It4Africa South Africa, a Pan African distributor of several technology products.
* Buyout discussions between Faritec and Lechabile Storage Solutions.
* The resignation of Hymie Pedro as CEO of Labat Africa.

The World Economic Forum Global Information Technology Report released last week shows SA has slipped to number 37 but has closed in on its closest African rival, Tunisia.

Paul Booth, MD, Global Research Partners

* MTN lost out again, this time on its bid for 34% of MTC, Namibia`s only mobile telecommunications company. The winner seems to be Portugal Telecom, which Telkom SA may buy as part of a consortium that involves various private equity players.
* Intel opened a Nigerian office in Lagos.

* Sanyo Electric plans to spin-off its computer chip unit.
* The talks between Kingston Communications and Carlyle, the US private equity group, were called off.
* Misys abandoned its plan to sell-off its IT services arm, Sesame.
* The appointments of Bill Parnell as president and CEO of PSC, Richard Rosenblatt as chairman of Icrossing, and Ed Teague as CEO of Bright View Technologies.
* The resignations of Robert Arkin as chairman of Modavox and Jeffrey Herzog as chairman of Icrossing (stays on as CEO).
* Analyst upgrades for 3M, Avnet, Cognos, Emulex, Fair Isaac, Skyworks Solutions, Sun Microsystems and Time Warner Telecom.
* Analyst downgrades for Accenture, Advanced Analogic Technologies, Align Technology, Asyst Technologies, CDW, FMC Technologies, Garmin, Internet Security Solutions, Neoware, OmniVision Technologies, Oplink Communications, Sanmina, SigmaTel, SiRF Technology Holdings, SPSS, TNS and Vasco Data Security International.
* Positive results announcements from Level 3 Communications, Nokia, Thus and ZiLOG Semiconductor.
* Negative result warnings from CGI Group, Cognos, Fibernet Group, Lexar Media, Portrait Software and SigmaTel.
* Stock repurchase announcements from Intermec and Navtech.
* Job loss announcements from CGI Group and Synplicity.
* Private funding obtained for AmberPoint, a Web services management company; Arch Rock, a provider of software for wireless sensor networks; CITTIO, a provider of systems monitoring tools; Coghead, a software development company; H-Stream Wireless, a semiconductor start-up; Networks in Motion, a wireless navigation and LBS company; WiQuest Communications, an ultra-wideband wireless chipset developer; and Ubisense, an asset location company.
* Stock offering announcements by American Reprographics, Google and Saifun Semiconductor.
* A share split announcement from VitalStream (reverse 1:4).
* A satisfactory IPO on Nasdaq by Taiwan`s Himax Technologies.

* Possible bids for Millicom International Cellular SA, the Luxembourg-based operator of mobile services.
* The various scenarios emanating from the possible merger of Alcatel and Lucent. These include the separation of Bell Labs into a separate US company, the merger of Alcatel and Thales` satellite interests, and the possible marriage of Ericsson and Juniper Networks.

* JSE All share index: Up 0.2%
* Nasdaq: Up 1.2% (highest close since February 2001)
* Top SA share movements: Datacentrix (-10%), Dynamic Cables (+40.5%), Labat Africa (-13.3%), Square One (+14.3%), Trematon (-8.2%) and Zaptronix (+8.3%).
* Top international share movements: CellStar (-26.6%), DA Consulting Group (+122%), Epicus Communications (-32.1%), Exabyte (+32.7%), LanOptics (+35.3%), Monolithic Power Systems (+29.8%), Parity Group (-71%), SEMX (+50%), Silverline Technologies (+51.4%) and SONICblue (+106.5%).

The World Economic Forum Global Information Technology Report released last week shows SA has slipped to number 37 but has closed in on its closest African rival, Tunisia (down from number 31).

The US had regained the top spot with Singapore at number two. In total, 115 countries are rated with Africa contributing 18 countries, and Botswana, Africa`s number three, placed at 56. Other notable changes included China and Russia both falling several places to 50 and 72 respectively. Australia, Hong Kong and Japan also lost ground; however, South Korea gained 10 places to come in at 14.

The report is a benchmarking tool to determine national ICT strengths and weaknesses, and to evaluate progress.