Highlighting two weeks of IT news

Several multi-billion dollar acquisitions and investments dominated the international world of IT and telecommunications during the last two weeks, including the take-over of Seagram by Vivendi and others involving AT&T Wireless, Intel, Telia and UPC.

Dimension Data announced that it expected to raise some $1.25 billion on its LSE listing and would use some of this money to buy out the minority interests of its UK subsidiaries.

Paul Booth, columnist, ITWeb

At home, the farce over the awarding of the third cellular licence, the Dimension Data LSE listing details and implications, and the happenings at ITI stole much of the local headline space.

• we saw excellent year-end figures from Streamworks (turnover and profit both better than prospectus figures);

• good year-end numbers from Accord Technologies (profit exaggerated by disposal of certain operations);

• satisfactory year-end results from MIH Group (back in the black, but still an operating loss);

• year-end losses from Community Technologies and Hicor (true reflection not possible until refocus complete);

• a massive year-end loss from Planit Technologies; and

• the revised listings of "New" Educor and LogicalOptions.

• Additionally, the OneLogix Group announced its intended reverse listing into Venmil, which is expected to materialise by the end of August;

• JemTech Holdings announced that a change of control of the group had taken place;

• ITI shares were suspended on the JSE;

• Dimension Data announced that it expected to raise some $1.25 billion on its LSE listing and would use some of this money to buy out the minority interests of its UK subsidiaries; and

• Telkom seems to have lost its battle with the data network operators, and has been ordered to supply the required additional bandwidth.

[Local]
[Cautionary]
[Listing]
[Result]

Other local news included:

• the "without prejudice" settlements made by former Bryant CEO and the FD with the Financial Services Board re an insider trading probe;

• the announcement that AST-A will revert to trading as the AST Group since the "failed" merger with Abraxas had become more of an acquisition;

• the appointments of Chris Kleingeld as the new CEO at Top Info Technology Holdings, Stefano Matiello as the MD of Sun Microsystems SA, Kai Schittko as MD of Infor SA and Wessie van der Westhuizen as MD of Alcatel Altech Telecoms;

• the announcement that iTouch, a local Internet service provider, intends to list in London shortly and that MGX would like to list its UK-based subsidiary on the LSE; and

• the opening of a SA office for Allen Systems Group (ASG), a software and services provider to Global 5000 companies.

• Additionally, the Post Office announced that it intends to unbundle its IT division, and

• Faritec and Paracon are proposing that they merge.

• we saw the announcement that SAS Institute will, at long last, after being a private company for 24 years, list in the US within 12 to 18 months;

• Bull has created a new subsidiary, Evidian, to focus on delivering secure e-infrastructure management solutions;

• Progress Software has announced the formation of NuSphere, dedicated to supporting MySQL; and

• Deutsche Telekom is rumoured to be interested in buying Unisys.

• Additionally, Xerox shares hit a five-year low on Friday, but recovered slightly by the close of the markets. This followed the announcement that US securities regulators are probing accounting issues at its Mexican business.

• It also looks as if the WorldCom/Sprint deal is dead, but already Deutsche Telecom and other European Telecomms are emerging as likely predators for Sprint.

• Additionally, the US has legalised the use of electronic signatures, and joins the Czech Republic, Hong Kong and the UK in taking these steps. In practice, it will be some months before the new legislation becomes effective.

[International]

Other international news included:

• the

  appointments

  of Antonio Perez as president and CEO of Gemplus, Roger Roberts as chairman and interim CEO of Citrix Systems, Louis Tanguay as president and CEO of Bell Canada International and Norio Tanoue as president and CEO of NEC Technologies;

• the

  resignations

  of Steven Carchedi, an executive VP at Integral Systems, Edward Iacobucci, founder and chairman of Citrix Systems, Ray Lane, president and COO of Oracle and James Toucher, the ex-president and CEO of NTS Computer Systems;

• job losses

  announced by Qualcomm; and

• the

  changes of name

  by BAV Software to Mercari Technologies, OTC America to e.NVIZION Comms Group, Stratus Computer to Stratus Technologies and USV Telemanagement to E*Comnetrix.

We saw excellent figures from Micron Technology, Nu Horizon Electronics, Palm and Verity.

Losses came from 3Com, ATI Technologies, Barrister Global Services Network, BrandEra.com, Bright Station, Cabletron, CellStar, Computone, Corel, Coyote Network Systems, Elcotel, Genroco, Great Plains Software, Image Systems, Intraware, JetForm, Leap Wireless International, Liberate Technologies, Kalamazoo, Manugistics, Media 100, Megadata, Micron Electronics, Perceptronics, Saba Software (but revenue up over 700%), Sheldahl, SVI Holdings, Tibco Software, Ursus Telecom, US Wireless, VirtualInternet.net, Vocalis, Wegener, XKO Group and ZeroPlus.com.

Good numbers were recorded by Cognos, Computer Automation Systems (back in the black), Comtrex, CSI, eHuset DDE Dansk Data Elektronik A/S, Hurwitz Group, Micronetics, Oracle (income up significantly), SAIC and Workflow Management; and satisfactory results from GTech, Plaintree Systems and The Cherry Corp.

Mediocre returns came from HEI and VTech; while very poor results came from CSP, Micros-to-Mainframes and Research in Motion.

Other financial news included profit warnings from 3dfx Interactive, Active Voice, Amkor, CGI, Ciber, CTG, Deltek, EMachines, Harmonic Lightwave, ICM Computer Group, Interlogix, ION Networks, Magic Software, Network Peripherals, SCM Microsystems, Sitel, Unisys and VirtualInternet.net.

There were also share split announcements from Check Point Software Technologies, Jaco Electronics, Logitech and Silicon Storage Technology.

And there were successful IPOs from Accelerated Networks, China Unicom (Telecomms), Click Commerce (e-commerce), EXFO (electro-optical engineering), Handspring (palmtop computers), Marvell Technology Group (comms chips), Orchestream Holdings (software development), Precise Software, StorageNetworks (data storage), Stratos Lightwave (optical subsystems) and Virage (managing and distributing video content over the Internet); a satisfactory IPO from Mobile TeleSystems; but disappointing IPOs from Accord Networks and Netease.com. Additionally, Inacom has filed for Chapter 11 bankruptcy protection.

Locally

Accord (-25%)
Aries (+26.9%)
CCH (-24.8%)
Elexir (-40%)
Faritec (-28.3%)
I-Tech (-25%)
Ixchange (+25%)
Micrologix (+25%)
Streamworks (+53.2%)
UCS (+32.3%)
USKO (+42.9%)

Internationally

Actuate (+40.2%)
Broadcom (+52%)
California Micro Devices (+46.8%)
ENTU (+43.1%)
ICM Computer Group (-43.4%)
Manugistics (+81.3%)
Redback Networks (+49.6%)
SGI (-54.2%)
SVI Holdings (-45%)
Unisys (-43.1%)

The last two weeks saw various publications publish "lists". The following are some of the key names and movements on these year 2000 lists:

a)       Software Magazine Annual 500. In the latest listings, IBM regained the number one slot, followed by Microsoft (down from number one), PricewaterhouseCoopers, Oracle (down from number three) and Anderson Consulting (up from number 20).

b)       VARBusiness500. Only Inacom dropped out of the top 10, with HP Consulting coming in at number seven. The top four remained as IBM Global Services, EDS, GE Capital IT Solutions and Anderson Consulting with the others playing musical chairs. In the top 10 fastest growing companies, 80% of them focus on Internet professional services with the top four being USinternetworking, Rare Medium Group, Scient and AppNet Systems. In the top distribution category the top four were Ingram Micro, Tech Data, Merisel and Pinacor.

c)       The Wall Street Journal Europe 500. In this listing the top IT/telecommunications companies or organisations with a major IT content, are Siemens (6), Deutsche Telekom (33), Olivetti (44), France Telecom (46), Telecom Italia (47), British Telecom (52) and Ericsson (53). In terms of market capitalisation, Vodafone and Nokia filled the overall top two slots, while STMicroelectronics was second overall in terms of the best performing stocks.