The protracted Vodafone and Mannesmann battle, which has now been settled, dominated the international world of IT and telecommunications last week.

At home, the resignation of John Beck, CEO at USKO, in a relatively quiet week, stole the local headlines.

The creation of the world`s fourth largest and Europe`s largest publicly traded organisation (only Microsoft, General Electric and Cisco are bigger), with a market capitalisation of about $350 billion, formed from the largest ever corporate merger ($179.8 billion and Mannesmann 49.5%), is now a reality following a long and extremely ugly (at times) set of negotiations.

The new group now also becomes the largest European telecommunications company and the world`s largest wireless operator. However, Mannesmann`s recent acquisition of UK mobile operator, Orange, is one part of the new set-up that has to be shed, according to European Commission rulings. France Telecom and KPN (Netherlands) look to be the favourites to acquire the company. The new conglomerate will now have some 48 million customers across 26 countries.

Since this merger has been put to bed, the tie up of Vodafone AirTouch and Vivendi to create a new 50/50 Internet company to develop and operate a branded multi access portal in Europe, can now proceed.

The only thing certain following the Vodafone/Mannesmann merger is that it will trigger a wave of consolidations that are likely to involve companies such as British Telecom and MCI WorldCom.

• we saw disappointing numbers from NetActive (investment income kept it out of the red) and Zaptronix (revenue and income less than 50% of previous full year numbers); and
• a profit warning from IST.

[Local]

Local acquisitions, mergers, investments etc (see attachment).
Local Cautionary Notices (see attachment).
Local Listing calendar (see attachment).
Local Result Summaries (see attachment).
Local Major Event Summary (see attachment).

Other local news included:

• the resignation of USKO`s CEO, John Beck; as Altron assumes control with David Redshaw taking the positions of CEO and chairman; and
• Comparex`s announcement that it is to heavily focus on e-commerce and data storage, which it sees as two high growth areas.

• the announcement by British Telecom, following the release of disappointing Q3 numbers, that it is shedding 3 000 jobs;
• the resignation of David Weiss, CEO of Storage Technology, following a profit warning, which also indicated that 500 jobs would be shed;
• the resignation of Juan Perea, CEO of Terra Networks, part of the Telefonica Group and the biggest listed Web stock in Europe;
• the resignation of Howard Graham, the CFO at Siebel Systems, who previously was CFO at Informix when, according to the SEC, revenue figures were inflated by nearly $300 million; and
• the news that Baan could be shedding some of its product lines following its latest set of loss-making results.

[International]

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

We saw excellent figures from ARM Holdings, Cysive, Digital Lightwave (back in the black), Exchange Applications, PCTEL (back in the black), Quest Software, Radiant Systems (back in the black), SDL and Viant (back in the black).

Losses came from Amazon.com, Analogy, Applied Microsystems, Baan, Banyan, Bluestone Software, Cadmus Comms, Clarus, CNET, Coinstar, Commtouch, CompUSA, Computron Software, CTI Group, CyberStar Computer, Data Return, Datawatch, Digex, Dunn Computer, E-Stamp, EarthWeb, Elcotel, Epicor, eXcelon, Exodus Comms, Ezenia!, Gensym, Input Software, Intellicorp, Internet Pictures, Intershop Comms, Interspeed, Jones International Networks, KPNQwest NV, MetaCreations, Metalink, MicroGrafx, Netcentives, Net Perceptions, NetSpeak, OneWorld Systems, Open Market, Persistence Software, Primus, PRT Group, Rainmaker, S3, Sage, SeaChange International, SilverStream Software, Stac Software, Summit Technology, Sync Research, Telemate.Net Software, Tower Semiconductor, Ultimate Software, Vasco Data Security International, Versus Technologies, VerticalNet, Vixel, WebLink Wireless, White Pine Software and ZapMe!.

Good numbers were recorded by Advanced Fibre Comms, Alphanumeric, Aspeon (formerly Javelin Systems), Avert, Brooktrout (back in the black), Business Objects, CommScope, Forrester Research, Group 1 Software, L3 Comms, Nokia, Onyx Software (back in the black), Open Text (back in the black), Qwest Comms (well back in the black), SpectraLink, Titan Corp. (back in the black) and Vishay Intertechnology (back in the black).

Satisfactory numbers were reported by Alcatel, Amkor Technology, Aris (back in the black), Comtrex Systems, Datastream (back in the black), Deltek, Mentor Graphics (back in the black), Mercator Software, PeopleSoft (back in the black), Performance Technologies, PSC, PSW Technologies, Radware, Sierra Systems and Sprint.

Mediocre returns came from Arel Comms (back in the black), British Telecom, Caere, Computer Sciences, EDS, ILOG SA (back in the black - just), Interface Systems, Micronetics Wireless, MDSI Mobile Data Solutions, Oce NV, PairGain, Printrak, SDRC, Skillsgroup, Summit Design, Tekelec and Tele Centro Sul (Brazil).

Very poor results were reported by Mechanical Dynamics, ON Technology, Paravant, Printware, ScanSoft and Zonic.

Other financial news included profit warnings from Etec Systems (Q2 loss), Keane and Storage Technology; share split announcements from Auto-Graphics, Exchange Applications, Nokia, Onyx Software, Pinnacle systems, VerticalNet and Viant. There were excellent IPO debuts by broadband specialist, Turnstone Systems; Internet software enabler, Centra Software; Telaxis and optical networking company, Avernex.

Locally

Bynx (-35%)
C-Tech (-38.5%)
Casey (-33.3%)
Explorer (+33.3%)
Idion (+24.3%)
Ixchange (+21%)
Labat (+50%)
Sethold (-33.4%)
Stella Vista (+41.7%)
Streamworks (+35.3%)

Internationally

Amkor (+29.6%)
ARM Holdings (+47.9%)
Aspen Technology (+36.5%)
Business Objects (+40.2%)
Clarify (+31.2%)
Cognos (+35.3%)
Cree (+42.6%)
Logica (+39.7%)
Nortel Networks (+29.7%)
PMCS (+30.1%)
Staffware (+83.6%)
StarMedia Network (+32.2%)
Sykes (-35.2%)
Tekelec (+33.7%)
Wavo (+48.1%)
Xilinx (+34.5%)

With the advent of increased computer literacy, and in particular the advent of e-mail, one would assume that the need for paper for printing purposes would start to show a decline. The evidence from the recent Lyra Research conference suggests otherwise.

New applications, particularly those at home, are blossoming fast and all need paper output. The current top three applications are now photo printing especially following the digital camera explosion, greeting card printing and bespoke T-shirts, which require the printing of transfers.