Flood of financial losses continues

The $2.75 billion acquisition by Furukawa Electric of Lucent`s fibre optics unit, and the flood of quarterly losses including those of Alcatel, AT&T, Compaq, Lucent, Sony and Xerox, dominated the international world of IT and telecommunications last week.

[VIDEO]At home, the news of two additional fixed-line telecoms operators and the closure of Siltek`s Australian operation stole much of the local headline space.

• we saw good full-year numbers from Crux Technologies (although revenue is well down);

• a full-year profit from Commerce One South Africa;

• a year-end loss from Zaptronix (revenue also well down) and an announcement that it intends to de-list from the JSE; and

• the suspension of the shares of Aries (to be de-listed at a later date) and Omega Alpha.

[Local]

Other local news included:

• Siltek`s announcement that it has closed its Australian operation;

• the resignation of Linda Wengrowe, chairman of Y3K;

• the news that government intends to license two additional national fixed-line operators; and

• the announcement that Cape-based TranZact had gone into provisional liquidation.

• we saw the restructuring of Qualcomm into two business units;

• the renaming of Perpetual Link to RemoteAbility; and

• the news that Palm is to create a separate subsidiary for its software platform group.

Additionally, look out for a potential merger of AOL Time Warner and the cable assets of AT&T; and the sell-off by AT&T and Verizon of their 49% shareholding in EuroTel to Cesky Telecom.

[International]

Other international news included:

• the

  appointments

  of Rick Haythornthwaite as CEO of Invensys, Konrad Hilbers as CEO of Napster, Jon Madonna as president and CEO of DigitalThink, Anne Mulcahy as CEO of Xerox, and Chris Wagner as president and CEO of Xchange;

• resignations

  of Roland Koch, chairman of Siemens ICN unit, Krish Prabhu, COO of Alcatel SA, and Richard Sulpizio, president and COO of Qualcomm;

• the retirement of Allen Yurko, CEO of Invensys; and

• job loss announcements

  from Alcatel SA, Arrow Electronics, BroadVision, CNET Networks, Endwave, Fujitsu, HP, i2 Technologies, Infineon, JDS Uniphase, Lucent Technologies, NTL, OmniSky, RealNetworks, RF Monolithics, Veeco Instruments and Xerox.

US politicians have called on anti-trust prosecutors to block the release of Microsoft`s XP and also announced Congressional hearings that spotlight Microsoft`s business practices.

Paul Booth, MD, Global Research Partners

We saw excellent figures from Check Point Software, Cysive, Cytyc, Input/Output (back in the black), Metro One Telecomms, Netegrity (back in the black), PEC Solutions, Simplex Solutions and Verisity (back in the black).

Good numbers were recorded by Amdocs (back in the black), ARM Holdings, AT&T Wireless, AXT, C-MAC Industries, Checkpoint Systems, ChoicePoint, DST Systems, ECTel, Elite Information Group, Embercadero Technologies, EPIQ Systems, Factual Data, Fargo Electronics, Fiserv, France Telecom, Global Imaging Systems, ICT Group, Interlogix (back in the black), L-3 Comms, Landmark Systems (back in the black), Logitech International, MetaSolv, Mechanical Dynamics, MSC.Software, NSTAR, NTL, Odetics (back in the black), Omnicom Group, PeopleSoft, Radiant Systems, Read-Rite (back in the black), RiT Technologies, Sanchez Computer Associates, Storage USA, Symyx Technologies (back in the black), Syncor International, Telefonica Moviles, Trident Microsystems (back in the black), Viasystems Group and Wanadoo SA.

Satisfactory figures came from APC, Barra, BTG, Cabot Microelectronics, Coherent, CryptoLogic, DTM, Dynamics Research, EDS, General Cable, Hummingbird, Innotrac (back in the black), Interactive Data (back in the black), Ionics, Lexmark, Linear Technology, Kronos, Maxwell Technologies (back in the black), MCSi, Mentor Graphics, Mobius Management Systems (but back in the black), MTS Systems, Performance Technologies, Qlogic, Quantum, RCM Technologies, Saga Comms, SBC Comms, Stewart Information Services, Storage Technology (back in the black), Tier Technologies, Universal Electronics, Valassis, Veeco Instruments (back in the black) and Ventro (back in the black).

Mediocre returns were reported by 3M, Adaptec, Advanced Fibre Comms, Analysts International, Anixter International, Arrow Electronics, AsiaInfo Holdings (back in the black), ASM International, AudioCodes, Autonomy, Avaya, Belden, British Telecom, BSQUARE (but back in the black), Catalyst Semiconductor, CenturyTel, Cognex, CommScope, Computer Access Technology, CompX International, Comshare, Concord EFS, Consolidated Graphics, Convergys, Cox Comms, Cree, CT Comms, Cymer, Dassault Systemes, Deltek, Diebold, ECSoft Group (but back in the black), FEI Company, Foundry Networks, Harris, IKON Office Solutions, Imation, Information Holdings, INRANGE Technologies, Insight Enterprises, Intersil, Keane, KEMET, Kingston Comms, Lam Research, Lightbridge, Microsemi, MKS Instruments, Molex, Nanometrics, NEC, New Horizons, OPTi (but back in the black - just), Pioneer-Standard Electronics, Qwest Comms, Roxio, Scala Business Solutions NV (but back in the black), Siemens, Software AG, Somera Comms, Sypris Solutions, Telus, The IT Group, Tricom SA (but back in the black), Viacom (back in the black), WorldCom Group and Zomax.

Very poor results were posted by Activision, Answerthink, ATMI, Brooks Automation, CDI, Ciber, Cobra Electronics, Comms Systems, eResearchTechnology, Inter-Tel (but back in the black), Intranet Solutions, Logic Devices, Metro Information Services, PAR Technology, Pericom Semiconductor, Presstek, Taiwan Semiconductor Manufacturing, The Intercept Group (but back in the black), Varian Semiconductor, Walker Interactive Systems and Wavecom SA (but back in the black).

Losses came from 3Dlabs, 724 Solutions, 8x8 (formally Netergy Networks), Accelerated Networks, Accrue Software, Actel, Acxiom, ADSC, Aetrium, Agere Systems, Airspan Networks, Aiwa, Alaska Comms Systems, Alcatel SA, Allegiance Telecom, Alliance Fiber Optic Products, Altera, American superconductor, Amkor Technology, Anadigics, Applix, Apropos Technology, Arguss Comms, Aris, Art Technology Group, Ascential Software, Asyst Technologies, AT&T, AT&T Canada, Auspex, AvantGo, Axcelis Technologies, Axcess, BCE, Bell Canada International, Bell Microproducts, Beyond.com, Billserv, Biper SA, Blue Martini Software, BMC Software, Brightpoint, BroadVision, Butler International, C-bridge, California Micro Devices, Call-Net Enterprises, Centennial Comms, Ceragon Networks, Chordiant Software, Cirrus Logic, Clarus, ClickAction, CNET Networks, Cobalt Group, Cohu, Commtouch, Communication Intelligence, Compaq, Compugen, Computer Associates, Concur Technologies, Coorstek, Corillian, Corning, Corvis, CoSine Comms, Crayfish, CrossWorlds Software, CTC Comms Group, CyberOptics, Cylink, Daleen Technologies, Datakey, Datastream Systems, Datatec Systems, Datawatch, Datum, DDi, Delano Technology, DeltaCom, Dialog Semiconductor, Digital Fusion, Digital Impact, Digital Insight, Digital River, DMC Stratex Networks, Docent, Edgewater Technology, eGain, Elastic Networks, Electronic Arts, eMachines, Encad, Endwave, Entrust, ePresence, Eprise, Equant, eShare Comms, eSoft, ESS Technology, Evolving Systems, eXcelon, Excite@Home, Exodus Comms, F5 Networks, Fairchild Semiconductor, FiberNet, FiNet.com, First Consulting Group, Floware Wireless Systems, Fortel, Frontline Comms, Fujitsu, Gadzoox Networks, General Magic, Geoworks, Getty Images, Giga-tronics, Globix, GoTo, GRIC Comms, GTSI, Helix Technology, High Speed Net Solutions, Hyperion Solutions, i3 Mobile, iBasis, ICOS Vision Systems, ImageX.com, Infineon, Infinium, InfoNow, InfoSpace, InfoVista, INSpire Insurance Solutions, Integrated Information Systems, Integrated Silicon Solution, Integrated Telecom Express, Interactive Intelligence, InterNAP Network Services, inTEST, Intevac, IONA Technologies, ITXC, J2 Global Comms, Jacada, JDS Uniphase, Jazztel, Juno Online Services, Kana, KPNQwest, L90, Lante, Larscom, Latitude Comms, Lattice Semiconductor, Leap Wireless International, Legato Systems, Lexant, Lexar Media, Loudeye, LSI Logic, Lucent Technologies, Luminent, Luminex, Madison River Comms, Marimba, Matsushita Comm, MCI Group, Mercator Software, Metalink, Metatec, Metawave, Micrel, Micro Linear, Microtune, Microware Systems, Multilink Technology, Nanophase Technologies, NCD, Net Perceptions, Net2000, Netcentives, NetGenesis, NetIQ, Netopia, Network Plus, Netzee, New Focus, Next Level Comms, NextCard, Nextel Comms, Nextel Partners, NICE Systems, Novadigm, Novatel Wireless, Oak Technology, ON Semiconductor, On2 Technologies, ONI Systems, ONTRACK Data International, Onvia.com, OpenWave Systems, Optibase, Organic, OTG Software, Qualcomm, Quest Software, P-Com, Parthus Technologies, Partner Comms, PCTEL, Peak International, Per-Se Technologies, Peregrine Systems, Perficient, Persistence Software, PictureTel, Pinnacle Data Systems, Pinnacle Systems, Pivotal, PLC Systems, Predictive Systems, PRI Automation, Primus, Prodigy Comms, Ptek Holdings, QuickLogic, RadView Software, Rainbow Technologies, Rectifier, Remedy, Rogers AT&T Wireless, Rogers Comms, RWD Technologies, SAP Systems Integration, Sapient, Schlumberger, SCM Microsystems, Segue Software, SeeBeyond, Selectica, ServiceWare Technologies, Shaw Comms, Signal Technology, SignalSoft, Silicon Graphics, Silicon Image, Silicon Labs, SilverStream Software, Simplex Solutions, Snap-On, Socket Comms, SOHU.COM, Sonera, Sonic Innovations, Sony, SRS Labs, Stanford Microdevices, Starbase, STATS, StyleClick, Superconductor Technologies, Superior TeleCom, Switchboard, Sybase, Sylvan Learning Systems, Symbol Technologies, Syntellect, TCSI, Tecelec, Technitrol, Technology Solutions Company, TeleComms Systems, Teledyne Technologies, Terayon Comms Systems, Texas Instruments, The Aston Technology Group, Transact Technologies, Transcrypt International, Tricord Systems, Trimble, Tumbleweed Comms, Tvia, UBICS, Ultimate Software, Ultradata Systems, Universal Access, USA Networks, USinternetworking, ValiCert, ValueClick, Vasco, Verilink, VeriSign, Versant, Versata, VerticalNet, Vignette, Virata, Visionics, Vitria Technology, Vixel, VocalTec Comms, WaveRider Comms, WebEx, WebMethods, Westell Technologies, Western Digital, WJ Comms, WorldGate Comms, Xerox, Zarlink Semiconductor, Zengine Zilog and Zoom Telephonics.

Other financial news included profit warnings from Agere Systems, Alcatel SA, ASM International, AT&T, Avaya, BroadVision, Brokat AG, CNET Networks, Compaq, Dassault Systemes, HP, Infineon, Kingston Comms, Lexmark, Lightbridge, LSI Logic, Lucent Technologies, Maxtor, Microsemi, NEC, NTL, ONI Systems, OpenWave Systems, Siemens, Sony, Terayon Comms Systems, Texas Instruments and Vitria Technology.

A share split announcement from Fiserv; a good IPO from infrastructure technology company PDF Solutions; a satisfactory IPO from Alliance Imaging; and an IPO filing from electronic interconnect systems, MicroHelix. Additionally, SAP has to re-state its net income in the light of its increased investment in Commerce One, and the latter`s substantial loss.

Locally

Bryant (+100%)

C-Tech (-55.6%)

Core (+100%)

Cyberhost (+50%)

Elexir (+33.3%)

Infowave (-36.4%)

Sempres (-28.6%)

UAM (-33.3%)

Vesta (-45%)

Y2KTec (+100%)

Internationally

Arch Wireless (-79.8%)

At Home (-46%)

Cirrus (-30.4%)

ConMat Technologies (-35%)

CTC Comms Group (+50%)

Exchange Applications (+66.7%)

Iona (-35.6%)

NCD (-38.3%)

OnSpan Networking (+47%)

OpenWave Systems (+39.1%)

SCT (+36.1%)

StarMedia Networks (-52.9%)

Zomax (-31.7%)

Microsoft seems to be finalising the content of its initial release of Windows XP in October. We already know that Sun Microsystems`s Java is out, and so is Smart Tags. Instant messenger is in, but not AOL Messenger; and Windows Media player is in, but Real Networks out.

Furthermore, US politicians have called on anti-trust prosecutors to block the release of Microsoft`s XP and also announced Congressional hearings that spotlight Microsoft`s business practices.