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HP scandal dominates

The international ICT world was dominated by the HP leak scandal during the past two weeks.
Paul Booth
By Paul Booth
Johannesburg, 02 Oct 2006

The international world of ICT during the last two weeks was dominated by the HP leak scandal and masked Motorola`s acquisition of Symbol Technologies.

At home, the local ICT space was mainly taken up with the Idion buyout as well as financial results.

Highlights of the past two weeks

* Motorola acquired Symbol Technologies for $3.9 billion.
* HP`s chairman, Patricia Dunn, resigned with immediate effect and not next January as originally expected.
* The buyout of Idion by IS Holdings III, a wholly-owned subsidiary of Thoma Cressey Equity Partners, a US-based private equity fund. The deal is valued at nearly $65 million and will result in the de-listing of Idion on the JSE later this year.

Key local news

HP`s chairman, Patricia Dunn, resigned with immediate effect and not next January as originally expected.

Paul Booth, MD, Global Research Partners

* Good year-end numbers from EOH, with revenue up nearly 20% and profit up over 60%; and GijimaAst with revenue up nearly 25% and back in the black.
* Excellent interim figures from Cape Empowerment Trust and Dynamic Cables, with revenue and profit up over 100% for both companies.
* Good interim figures from Altech, with revenue up 13% and profit up a little over 10%.
* Mixed interim numbers from Square One, with revenue marginally up but profit up over 300%.
* The very good listing on AltX of Dialogue Group Holdings, a call centre outsourcing company.
* Positive trading updates from Datacentrix, Jasco and Paracon.
* The postponement of number portability in SA until 10 November.
* Saab Grintek acquired the communications division of Thales Advanced Engineering.
* EOH bought Integrate IT.
* GijimaAst acquired Absa`s 30% shareholding in AST Distributed Technology Services.
* MultiChoice SA established a 15% empowerment deal for involving Phuthuma Nathi Investments. MultiChoice owns 100% of MWeb.
* The 27% investment by Mvelaphanda Holdings, Afripalm Consortium and the Sahara Employees Trust Fund in Sahara Holdings.
* The appointments of Robert Gumede as chairman of GijimaAst and Jane Phiri as chairman of ISA.
* The resignation of Hans Smith as chairman of GijimaAst.
* Leaf Wireless acquired and marketing rights for HTC smartphones and PDA phones in southern Africa.

Key African news

* Good year-end numbers from Botswana Telecommunications, with profit up nearly 18%.
* Good year-end figures from Mauritius Telecom, with profit up nearly 20%.
* The appointment of Mac Allman as CEO of Namibia`s Powercom.

Key international news

* BenQ Mobile in Germany is expected to file for bankruptcy.
* HP moves into the gaming market with the purchase of Canadian-based Voodoo Computers, a maker of high-end PCs popular with gamers.
* The split of CODASciSys into two companies, Coda and Scisys, and the flotation of the former on London`s AIM.
* The Dutch government sold off its remaining 8% stake in KPN.
* Microsoft snapped-up Israeli technical support product start-up, Gteko.
* Harte-Hanks acquired AberdeenGroup, a technology research organisation.
* EMC acquired Network Intelligence, a specialist and developer of event logging systems and the VTL Software originally developed by Neartek.
* An IPO filing from Switch & Data, a networking company.
* A good IPO by DivX, a licenser to consumer hardware device manufacturers.
* An excellent IPO by Riverbed Technology, a maker of networking software.
* A good IPO by CommVault Systems, a provider of data management software applications.
* A satisfactory IPO by Shutterfly, a photo Web site.

Look out for

* A possible break-up of ASM International.
* The possible sell-off by Deutsche Telekom of its 49% stake in Polska Telefonica Cyfrowa, Poland`s second largest mobile phone operator.

Research results and predictions

* According to Gartner, 25% of new business software will be delivered as software as a service by 2011.

Stock market changes

* JSE All share index: Up 4.6% (record weekend close)
* Nasdaq: Up 1%
* Top SA share movements: Cape Empowerment Trust (+11.5%), Datatec (+10.9%), Digicore (+8.8%), Dynamic Cables (+35.7%), GijimaAst (+10%), I-Solutions (-12%), Idion (+119.4%), Labat Africa (+9.5%), Spescom (+9.8%) and Stella Vista (38.5%).
* Top international share movements: Advanced Analogic Technologies (-34.5%), Bitstream (+33.1%), Delphax Technologies (-26.1%), Entrada Networks (-50%), Epicus Communications (-37.5%), Exabyte (-26,7%), Forgent Networks (+29.7%), Pegasus Wireless (-40.2%), Silicon Graphics (-28.3%) and SunCom Wireless Holdings (-27.3%).

Final word

Datamation has published what it believes to be the five fastest growing IT jobs. They are:
* Network systems and data communications analyst (expected growth rate between 2004 and 2014: 54.6%).
* Computer applications software engineer (48.4%).
* Computer systems software engineer (43%).
* Network and computer systems administrator (38.4%)
* Database administrator (38.2%)

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