Gates shares his business savvy

The buy into Japan Telecom by AT&T and British Telecom, the acquisition of Fore Systems by GEC for some $4.5 billion, and the take- over of CMP Media by UK`s United News and Media dominated the international business world of Information Technology last week.

At home, the two new IT listings and the confirmation by Altech that it still intends to list its IT division separately, stole the local headlines.

The GEC acquisition of Fore Systems catapults the former into the US domestic telecomms market, and positions the company well to compete globally. The deal follows GEC`s disposal of its defence business and its recent $2.1 billion purchase of Reltec, a US developer of last-mile, local loop systems.

CMP media is the publisher of Computer Reseller News and Information Week, plus a host of Web sites, including CMPnet (http://www.cmpnet.com) and TechWeb (http://www.techweb.com). Its business combined with United`s subsidiary Miller Freeman trade show and publishing businesses, create one of the leading market-focused business-media groups, which will be brought under a single CMP brand.

• the listings of Central Information Holdings and Paracon on the JSE; * the profit warning (loss) from the Connection Group for the year ending 31 May 1999;
• the satisfactory year-end figures from Altech;
• the good interim figures from Set Point Technologies;
• the purchase by Jens Montana, the Chairman of Datatec, of the Datatec shares disposed of by Hosken Consolidated Investments;
• and the news that black-owned Midland Economic Equity Group had become a partner in Y2KTec.

[Local]

Local cautionary notices (see attachment)

Local IT listing calendar (see attachment)

Other local news included:

• the announcement by Reunert that it plans to list three of its divisions once they were sufficiently profitable (PAT approx. R100m);
• the announcement that the equity swap deal between Applied Card Technology and Prism card Technologies had been called off.

• the uneventful IPO of Software AG, the largest ever in the software industry;
• the folding-up of Acorn Group Plc., the UK-based pioneer in PC manufacturing; and the announcement by Iomega that it will close two plants in California.

[International]

Other international news included:

• the resignation of the CEO of Cadence Design Systems, a week after issuing a profit warning;
• the resignation of the UK managing director of SAP AG;
• the appointment of Gregory Owens as the new CEO of Manugistics;
• the announcement of a major re-organisation at BMC Software into five product-specific business units;
• and the release of the new name for Platinum Software later this year - "Epicor".

On the results front, we saw excellent figures from Ascend Comms, American Nortel Comms, AOL, BATM Advanced Comms Ltd, CGI Group, Compuware, eBay, ICG Comms, Javelin Systems, Logitech, Prokom Software SA, Sapiens International and SBS Group Plc.

Losses came from Acsys, ACT Teleconferencing, Adaptive Broadband, Amazon.com, Ancor Comms, Aspen Technology, Aureal Semiconductor, Axent, Baan, Boca Research, CGI, Comdisco, Computron, Creative Computers, DataDesign AG, Data Transmission Network, Datawatch, DoubleClick, EarthWeb, EDS, Enlighten Software Solutions, Expert Software, Firstwave Technologies, Flexi International Software, Genicom, Gensym, Geoworks, Glenayre, Globecom Systems, GST Telecomms, Illinois Superconductor, Imaging Technologies (revenue also well down), InfoSpace.com, Infowave, Inprise, Intergraph, Integrated Silicon Solution, Intellicorp, Iridium, ISG International Software Group, JDA Software Group, KMC Telecom, LanOptics, Marcam, MediaOne Group, MEMC Electronic Materials, Mentor Graphics, MetroNet Comms, MGC Comms, Micrion, Micro Component Technology, MindSpring, NetManage, Nortel Networks, Peregrine Systems, PSINet (revenue more than doubled), Quad Systems, Read-Rite, Sagent Technology, Segue Software, Sendit AB, Smith Micro, Socket Comms, Stac Software, Sync Research, Telular, Tera Computer, Tower Semiconductor, Treev, Verio, Versant, Walker Interactive Systems, White Pine Software, WorldPort Comms, ZDNet and Ziff-Davis.

Good numbers were recorded by ACT Manufacturing, ACX Technologies, Adaptec (better than expectations), Artemis Management Systems, BMC Software, Business Objects, Complete Business Solutions, Computer Technology Associates, Consolidated Graphics, Cotelligent, Cox Comms, Dassault Systemes, ECsoft Group, EMS Technologies, Excel Switching, IMRglobal, Information Holdings, International Network Services, Ixos (back in the black), Key Technology, L-3 Comms, Maximus, Merkantidata ASA, Metamor Worldwide, Metro One Telecomms, Micros Systems, Micro Warehouse, Mobius Management Systems, New Horizons, Novadigm (back in the black), Pegasus Systems, Platinum Software, SDL, Symbol Technologies, Tieto, Uniphase, West TeleServices, World Access (back in the black) and WM-data AB; and satisfactory ones by Aliant Comms, AT&T, Cognitronics, GSE Systems (back in the black), Ingram Micro, Integrity Holdings, Logic Devices, MSB International, National Instruments, Quantum, Scientific-Atlanta, Softworks (back in the black), Syntel, TechForce (back in the black), Xionics and Zebra Technologies.

Mediocre returns came from Arrow Electronics, Avnet, Banyan Systems, Brooks automation (back in the black), Creative Technology, Infinium, Information Analysis, Microsemi, Mosaix, Performance Technologies, Printronix, SCI Systems, Sony, USA Networks and V3 Semiconductor; whilst very poor results came from Alliance Semiconductor (but back in the black - just), Centura Software, Mapics, OrCAD (but back in the black), OSI Systems, Scan-Optics, Storage Technology and Tekelec.

Other financial news included:

Profit warnings from Sony; shares splits from Concentric Network; Cox Comms and Lexmark (the first ever); and successful IPO`s from AppliedTheory Comm, Informatica (software) and Marimba (Internet services).

Internationally

AboveNet Comms (-20.8%) CHS Electronics (+37.1%)
Computron (+34.9%)
Fore Systems (37.8%)
Hyperion (+23.5%)
IMSI (-21.8%)
SCI (+31.8%)
Segue Software (-21.3%)
Sequent (+26.8%)
Software AG (+40.8%)
Vantive (+22%)
Wang (+23.8%)

Locally

Core (+21.7%)
Crux (-19.4%)
E-Data (+27.5%)
Explorer (+37.3)
Hix (-18.7%)
Infinity (-18.2%)
NetActive (-17.2%)
PentaCom (-17.1%)

I have just finished reading the latest book from Bill Gates called "Business @ the Speed of Thought". This book is primarily aimed at top management and poses some interesting and pertinent questions regarding the exploitation of IT by organisations (or, more realistically, the lack of it). There is little that is really new or earth-shattering, but since it is written by Bill Gates, maybe this time people will take note of what is said and apply it to their businesses.