Free Net access offering makes waves

It was quiet on the international IT front last week, even though CeBIT is underway in Germany. Locally, the news that UK-based X-Stream, one of the top five UK ISPs, is coming to SA to provide a free-access Internet service for consumers had everyone talking.

• we saw excellent maiden interim results from Enterprise Outsourcing Holdings;
• satisfactory maiden interim numbers from Compu-Clearing Outsourcing and E-Data;
• the announcement of the partnership deal between Top Info and Indian-based Alit, the specialist software division of the Hinduja Group; and
• rumours that Prism Interactive, a subsidiary of Africa Media Entertainment, is to buy-out The Internet Solution`s share in Tinderbox Interactive.

[Local]

Local Cautionary Notices (see attachment)

Other local news included:

• the appointment of Mark Hiller as deputy MD for Venture Computer;
• the appointment of Franz Lorber as the new GM for HP SA; and
• the announcement by Dimension Data that it has merged its recruitment companies Silverline and CPL into a new unit, Dimension Data Silverline.

Xhead = On the international front

• the announcement that Cincom Systems and ORBIS GmbH are to form a joint venture to market Customer Relationship Management solutions;
• rumours that AOL will shed some 30% of Netscape`s workforce now that its acquisition is complete;
• rumours that Fore Systems was being targeted for acquisition; and
• AT&T, together with its International partner, British Telecom, is to acquire a 30% stake in Japan Telecom for about $1 billion.

[International]

We saw excellent figures from DCS Group, Genesis Microchip, Great Plains Software (better than expected), Lintec Computer AG, NSB Retail Systems and Progress Software.

Losses came from Autonomy, Circuit Systems, Datapoint, Datatec Systems, Davel Comms, iMall, Infobank International Holdings, Logix Comms, MGI Software, Nortech Systems, PCQuote, Plasma-Therm, Scala Business Solutions, SEMX, SRS Labs, Superscape VR, VersaTel and Xaar.

Good numbers were recorded by Adobe (better than expected), Computacenter, Comverse Technology, Dialog (back in the black), Financial Objects, MDIS Group, M-R Group and Solectron. Satisfactory figures were announced by Genesys SA (back in the black) and Jabil Circuit.

Mediocre returns came from Tetronix (income well down and revenue down); and very poor numbers from Electro Scientific Industries (just in the black but better than expected).

Other financial news included profit warnings from Cambridge Technology Partners, Corel (loss), Network Associates, OSI Systems and Tekelec; share splits from CMGI, Comverse Technology and JetForm; and supply chain software company EXE withdraws its IPO filing.

Locally

Billcad (+19%)
Cyberhost (+22.2%)
Dectronic (+20%)
EOH (+37.5%)
Imphold (+21.3%)
JemTech (-30%)
Maxtec (+20.8%)
Micrologix (+118.5%)
Selective Financial Group (+64.7%)
Wentech (-19.1%)

Internationally

AOL (+24.1%)
Aspen Technology (-21.4%)
Banyan (+21%)
Business Objects (-21.1%)
Cabletron Systems (+20%)
Cambridge Technology Partners (-49%)
Comdisco (+21.5%)
Corel (-46%)
Egghead (+35.2%)
Encad (+24.7%)
Fore Systems (+24.8%)
Mapics (-24%)
MIPS (+25.7%)
Network Associates (-35.7%)
Network Solutions (+29.7%)
Psion (27.8%)
Tekelec (-32%)
Tektronix (+36.2%)

This week will see the listings of Cycad Financial Holdings (includes IT interests), Hix Technologies and the Smacsoft Group on the JSE.

Intel seems to have escaped the clutches of the DOJ and a long drawn-out case, after it had its proposed anti-trust settlement approved by the Federal Trade Commission.