Global piracy costs billions

The latest software piracy numbers dominated the international ICT scene, while at home the turnaround at Datatec and Paracon took much of the local ICT headline space.

* The latest software piracy percentages show Zimbabwe (90%) is the worst in Africa and the third worst overall, with SA`s rating worse by 1% (up to 37%). The US has the world`s lowest piracy rate at 21%. It is estimated that the loss through piracy is worth $33 billion.

* HP last week released its first set of quarterly results since Mark Hurd took over as CEO. Both revenue and income were up slightly, but the costs of the impending headcount reductions, expected to be between 5% and 10% (7 500 to 15 000 people), could impact the next set of figures. The industry is also waiting to see if the printing and imaging division, which generates a small portion of the revenue ($24 billion) but a significant part of the bottom line (73%), is to be floated off, as was done with Agilent Technologies a few years ago.

* Satisfactory year-end results from Datatec with revenue up about 8% but well back in the black.

* Very good interim figures from Paracon with revenues up over 40% and profit more than double.

* Mediocre interim results from Trematon with net income well down from the similar period last year.

* Positive trading updates from Faritec and Stella Vista.

* A negative trading update from Synergy.

* The de-listing of Grintek`s shares.

* Technews Group launched Computer Business Review Africa.

* Sharp returned to SA with the appointment of SCE Distribution as the official distributor of Sharp Consumer Electronics.

* A proposed rights issue from Trematon, which will also diversify so that it is no longer dependent on Intec Telecom Systems.

* Harvey Jones Systems was appointed as distributor of Decisioneering`s Crystal Ball product.

* Sammy Kirui was appointed as MD of Telkom Kenya.

* Indications that Telkom Kenya is likely to be privatised by mid-2006.

* Indications that both Virgin Mobile and Vodacom have submitted bids for a controlling stake in Vee Networks Nigeria.

* Senegal to issue a tender for a second national operator and a third mobile operator next month.

It is estimated that the loss through piracy is worth $33 billion.

Paul Booth, MD, Global Research Partners

* TCL Communications bought out Alcatel`s share in its handset joint venture for EUR6.4 million, significantly down from the EUR45 million it paid last August for its 45% shareholding.

* CoSine Communications abandoned the proposed acquisition of TUT Systems.

* The appointments of Randall Baumberger as COO and president of Ultimate Electronics, Nigel Clifford as CEO of Symbian, Hugo Dorph as CEO of Maconomy, Richard Snyder as chairman of Gateway, Donald Stebbins as COO and president of Visteon, and Paul Yantus as CEO and president of Scan-Optics.

* The retirement of Ted Waitt, founder and chairman of Gateway.

* Analyst upgrades for Activision, Adobe, Alliance Data, AMD, EchoStar Communications, Electronic Arts, Intrado, iPayment, L-3 Communications, Macromedia, Maxtor, McData, Mercury Interactive, Portugal Telecom SA, salesforce.com, Symantec, Taiwan Semiconductor, Take-Two Interactive Software, THQ, Transmeta and Veritas Software.

* Analyst downgrades for Applied Materials, ATI Technologies, Brocade Communications, Cablevision Systems, CACI, Digital Insight, Foundry Networks, Global Signal and Western Digital.

* A positive result announcement from SI International.

* A negative result warning from QAD.

* Stock repurchase announcements from Borland, CyberOptics, Global Imaging Systems, Hyperion, II-VI, InfoSpace, Intuit, Motorola, Power-One and SurfControl.

* Job loss announcements from Applied Materials, EDS and STMicroelectronics.

* Private funding obtained for Chipidea Microelectronica SA, a developer of analogue and mixed-signal chips; Fastmobile, a software developer; Five9, a VOIP call centre services company; ITM Software, a software developer; and Sequiam, a provider of hardware and software products.

* A planned IPO on Nasdaq by Cbeyond, a Cisco-backed IP-based carrier.

* A planned IPO on London`s AIM by Red-M.

* A planned IPO in London by Inmarsat.

* Brocade Communications is to re-state its financial results for 2002, 2003 and 2004.

* The acquisition of Arche Communications SAS by Belgian network integrator Telindus Group NV.

* The opening of a local office or the appointment of a distributor in SA for Red Hat.

* JSE All share index: Up 3.4%

* Nasdaq: Up 3.5%

* Top SA share movements: Alliance Data (-9.1%), Beget Holdings (-12.5%), Control (+9.4%), Datatec (+13.1%), Faritec (+12.5%), Infowave (+17.9%), Square One (+25%), Stella Vista (+50%), Synergy (+30%) and Y3K (-27.8%).

* Top international share movements: AEA Technology (+37.8%), AXS-One (+29.4%), Com21 (+200%), Daisytek International (+200%), Digital Lightwave (+42.9%), Elcom International (-33.3%), Flightstore (+37.5%), Sipex (+37.4%), SRS Labs (+34.8%) and Trinsic (+30.4%).

The next few weeks locally look as if they will be eventful with the imminent licensing of the second national operator following the completion of the business plan and the shareholders` agreement, and Cabinet`s approval of the ICT empowerment charter.

Transnet looks as if it will shed its non-core assets, which by definition, means its shareholding in arivia.kom. However, this may exclude its Transtel subsidiary that is seen as strategic to Transnet.