How the mighty have fallen

The $6.14 billion investment in Olivetti by Edizione Holding (Pirelli and Benetton), and the latest in the Microsoft/DOJ saga dominated the internationalworld of IT and telecommunications last week.

[VIDEO]At home, the continuing debate over the two additional national fixed-line operators, and the dropping of Dimension Data from the FTSE 100 dominated the local media.

• full-year losses from Interconnective Solutions (revenue also down significantly) and NetActive (continuing operations revenue well up);

• a "return to profitability" from Brainware (10 months) following various disposals; and

• the announcement that Datatec and Primedia are to acquire the shares of Metropolis and apply for the subsequent de-listing of the latter.

• Additionally, Oxbridge and Internet Gaming have had their shares suspended on the JSE; and

• SecureData is expected to be de-listed from the JSE at the end of August.

Local acquisitions, mergers, investments etc (see attachment).

Local Cautionary Notices (see attachment).

Local Result Summaries (see attachment).

Local Major Event Summary (see attachment).

Other local news included:

• the hosting of Gartner`s first African Symposium/ITxpo;

• news that Brainware intends to apply to the JSE for a lifting of its suspension, following the disposal of all its assets;

• the resignation of RG Still as chairman of Streamworks;

• news that Y2Ktec has cancelled the sell-off of its operating subsidiary to Nomalanga Trading Enterprises and announced its intention to buy CCI, a professional services company, following which it will be re-named;

• the appointment of Thorsten Freitag as MD of Sub-Saharan Africa for Cisco SA; and the directorate re-shuffled; and

• news that Dimension Data shares had been dropped from the FTSE 100 index.

• we saw the announcement from Deutsche Telekom that it would delay the listing of its mobile division, T-Mobile;

• the news that NEC will pull out of memory chip production;

• the name change of DiamondBack Vision to ObjectVideo; and

• the ruling that rejected Microsoft`s request for a re-hearing on the US Court of Appeals anti-trust judgements.

Last week at the Gartner conference attended by over 1 200 people, the final words by John Mahoney, one of Gartner`s research directors, were extremely pertinent in today`s environment.

Paul Booth, MD, Global Research Partners

Additionally, watch out for another significant job loss announcement from Siemens and a possible three-way merger involving Olivetti, Telecom Italia and Pirelli.

International acquisitions, mergers, joint ventures etc (see attachment).

Other international news included:

• the

  appointments

  of Wayne Burkan as president and COO of Logic Solutions, Kevin Dowd as CEO of Metricom, and Eric Janszen as CEO of Bluesocket; and

• job loss announcements

  from ADC Telecom, Arc International, Be, CDT, Dataram, Enea Data AB, ExciteAtHome, Gemplus, Global Crossing, InterTrust Technologies, Metricom, NaviSite, NEC, Netcentives, Philips Electronics, Sun Microsystems, Stratos Lightwave, TeleTech Holdings, Tripath and Wind River Systems.

Excellent figures were posted by MatrixOne (back in the black), OPNET Technologies, STM Wireless (back in the black) and Unique broadband Systems.

Good numbers were recorded by BISYS Group, CSG International, CGI Group, EFTC (back in the black), Flomerics Group, Garmin, Hector Comms, Ixos Software AG, KLA-Tencor, Maximus, Melbourne IT, Mercury Computer, Micronetics, Radware, SK Telecom, Symmetricom, Trikon Technologies, VI Group, Wireless Telecom Group and Xcelera.

Satisfactory numbers were reported by ACS, ATC (back in the black), Atlantic Tele-Network, Century Business Services, Commonwealth Telephone Enterprises, Dionex, ebix.com (back in the black), Fujitsu Siemens Computers BV, Lorien (back in the black), M-Wave, Merge Technologies (back in the black), Momentum Software, Pegasystems (back in the black), Perot Systems, ScanSoft (back in the black), Siliconix, SPX, Tele Danmark, Telewest Comms, TietoEnator Oyj, Trend Micro, Univision Comms and Viisage Technology.

Mediocre returns came from Alltel, Comcast, CompuCom Systems, CSC, GSI Lumonics, Harland, ILOG, Infonet Services, Innovative Solutions & Support, Intelligent Systems, Intergraph (back in the black), Macrovision, Nam Tai Electronics, O2Micro, Optical Comms Products, Orbotech, Sykes Enterprises, Technisource and Vishay Intertechnology.

Very poor results came from Allen Telecom, Aware, Cognitronics, E-Stamp (back in the black), Epicor (back in the black), Group 1 Software, IDX Systems, Intelligroup (back in the black), International FiberCom, Mapics, Nashua, Radyne ComStream, Register.com, Silverline Technologies, Wavecom (but back in the black) and XeTel.

Lossescame from ACME Comms, ACT Manufacturing, Acterna, ActivCard SA, Advanced Semiconductor Engineering, Adept Technology, Aether Systems, Allin, Alternative Resources, AltiGen, Andrea Electronics, APAC Customer Services, Applied Imaging, Applied Microsystems, AppliedTheory, ARC International, Asante Technologies, Asia Global Crossing, Ask Jeeves, Avanex, Axsys Technologies, AXS-One, BackWeb Technologies, Be, BindView, Bitstream, Bluefly, Bookham Technology Plc., Brainpower BV, Cabletel Comms, Cadmus Comms, Caliper Technologies, Caminus, Catalyst International, CCC information Services Group, Cell Network AB, Charter Comms, ChipPAC, Choice one comms, ClickSoftware Technologies, Computer Horizons, Copper Mountain Networks, Coreco, Cotelligent, Covansys, Cray, Creo, Critical Path, Cypress Comms, Data I/O, DataWave Systems, Datron Systems, Deutsche Telekom, DiamondCluster International, Digex, Digital Lava, Digitas, Dobson Comms, DSET, DSL.net, eB2B Commerce, Elcom International, Enea Data AB, enherent, Evolve, EXE Technologies, Extended Systems, Ezenia!, FastComm Comms, Fastnet, FiberMark, FreeMarkets, Gemplus International SA, GenRad, Genus, Glenayre, Global Crossing, GlobeSpan, High Speed Access, Hypercom, I/NET, iBeam Broadcasting, Identix, IEC Electronics, Ingram Micro, InterDigital, Interliant, Intershop Comms AG, InterTrust Technologies, Intrado, iPIX, iPrint Technologies, Iron Mountain, Jupiter Media Metrix, LightPath Technologies, Lionbridge, Matsushita Electric Industrial, Micro Component Technology, MicroStrategy, Microvision, Mobile Data Solutions, Mobility Electronics, MRV Comms, MSL, MTI Technology, MTS, Nematron, NTELOS, Numerex, On Command, Plink Comms, PCD, Pegasus Solutions, PeoplePC, PixTech, Previo, ProBusiness Services, Proxim, PSC, PSi Technologies, RadVision, RCN, S1, Sagent, Sapiens International, Scan-Optics, SCI Systems, Scient, SciQuest, SimpleTech, Sitel, SmartDisk, Sonic Foundry, Sonic Solutions, SONICblue, SPSS, SynQuest, T-Online AG, Tangram Enterprise Solutions, Tekgraf, TeleTech Holdings, Terra Lycos, Timeline, Tower Semiconductor, Triton Network Systems, Tut Systems, United Microelectronics, US LEC, V-One, Verizon Comms, Verso Technologies, Vertal, Viewpoint, ViryaNet, Vitrix, Williams Comms, Witness Systems and Zixit.

Other financial news included profit warnings from ADC Telecom, Adobe Systems, Aether Systems, Agile Software, Ask Jeeves, Cap Gemini Ernst & Young, CDT, Cell Network AB, CSC, Dataram, Descartes Systems Group, Epicor, FreeMarkets, Fujitsu, Infonet Services, JD Edwards, MatrixOne, Matsushita, McLeodUSA, Mercury Computer Systems, Pegasus Solutions, QSP Group, S1, SCI Systems, Stratos Lightwave, United Microelectronics, Verizon Comms, Williams Comms and Wind River Systems.

There was also a share split announcement from Microsemi; a good IPO from HPL Technologies (semiconductors); and a withdrawn IPO from Insession Technologies (software maker). Additionally, Internet Commerce & Comms and Rhythms NetConnections have filed for Chapter 11 protection; Lightning Rod Software might have to close its operations later this month; and French Linux distributor, MandrakeSoft SA has listed on Euronext`s Marche Libre.

Locally

Acuity (-39.4%)

Casey (+200%)

Cyberhost (-33.3%)

Hicor (+85.7%)

Jasco (+37.5%)

Metropolis (+81%)

Micrologix (-50%)

Netactive (+42.9%)

Pradatech (-33.3%)

PTH (+33.3%)

Siltek (+36.8%)

Spicer (-25%)

Stella Vista (+33.3%)

Vesta (+36.4%)

Y3K (-37.5%)

Internationally

Arch Wireless (+50%)

ConMat Technologies (+46.2%)

Descartes Systems (-45.6%)

Filtronic (+40%)

Infonet (-40.1%)

Innovation Group (+44%)

ITRA (+46.2%)

Komag (+46.2%)

Madge (+353.1%)

Primus Telecomms (+300%)

Last week at the Gartner conference attended by over 1 200 people, the final words by John Mahoney, one of Gartner`s research directors, were extremely pertinent in today`s environment: "Align your IT investment with your business strategy, don`t ignore emerging technologies and don`t ease-off on IT investments just because of the current poor economic conditions."