HP/Compaq controversy continues

The continuing banter regarding the proposed HP/Compaq merger dominated the international world of IT and telecommunications during a relatively quiet time last week.

The "Venter Empire" seems to be embarking on its "Grand Plan".

Paul Booth, MD, Global Research Partners

At home, the financial update from Dimension Data and the spate of local results took much of the local IT/telecoms headline space.

• we saw a full-year loss from Advtech;

• good half-year figures from Mustek (revenue up and earnings significantly up);

• satisfactory half-year figures from DNA (revenue well up but income only slightly up);

• mediocre interim numbers from Rectron (revenue slightly up but earnings slightly down); and

• interim losses by Aqua Online (but revenue up) and Systems Publishers.

• Additionally, the shares of Cyberhost were suspended, Dimension Data issued a profit warning (but not in as many words); and Elexir is in danger of having its shares suspended on the JSE for failing to submit its annual financial statements timeously.

[Local]

Other local news included:

• the resignations of Cyberhost`s directors;

• the issue of share options to the new empowerment company AKA Capital;

• the news that Kagiso Media expects to conclude negotiations to dispose of System Publishers in the very near future; and

• the reduction of Softline`s interest in SVI to 21.3%.

• we saw the emergence of Aquilent, a new company formed by a management buyout of Commerce One`s e-government unit;

• the news that the potential deal between Infineon Technology and Hynix was a non-starter;

• the Federal Trade Commission`s clearance of the proposed HP/Compaq merger;

• the news of a new lawsuit by Sun Microsystems against Microsoft; and

• the announcement of a re-organisation at Global Crossing.

Additionally, look out for the possible acquisition of Global Crossing, currently in Chapter 11, by Gores Technology Group; the purchase of Sonus Networks by Cisco; and the buyer for France Telecom`s stake in Telediffusion de France.

[International]

Other international news included:

• the

  appointments

  of Michael Farese as CEO of WJ Comms, Steve Goggiano as CEO of CoSine Comms, Lisa Hook as president of AOL`s Broadband Group, David Laurello as president and COO of Stratus Technologies, Steve Mitchell as president and CEO of Geoworks, Tamotsu Nomakuchi as CEO of Mitsubishi Electric, James Rottsolk as president and CEO of Cray, Hector Ruiz as CEO of AMD, Ichiro Taniguchi as chairman of Mitsubishi Electric (was CEO), Sherrie Woodring as president and CEO of Inrange Technologies and Linda Zecher as president and CEO of Evolve Software;

• the

  resignations

  of Michael Haydock, president and CEO of Cray and Audrey Weil, president of AOL`s Broadband Group;

• the retirement

  of WJ Sanders as CEO of AMD; and

• job loss announcements

  from Aether Systems, Fujitsu, Global Crossing, Ision Internet AG, Loudeye, Napster and Verizon Comms.

We saw excellent figures from Cross Media (back in the black)

Good numbers were recorded by Alliance Imaging (back in the black), Fastnet (back in the black), MSC.Software, SeaChange International (back in the black) and SteelCloud.

Satisfactory results were posted by Diversified Security Solutions, ICM Computer Group and Workflow Management.

Mediocre returns came from Allin (but back in the black), C&D Technologies, Geac Computer (but back in the black), QAD, Telstra and Track Data.

Very poor results came from Atlantic Tele-Network, Manchester Technologies, Norstan (but back in the black) and Tyler Technologies.

Lossescame from 365 Corp, African Lakes, Baltimore Technologies, BrightStar Information Technology Group, Camtek, Citizens Comms, CompleTel, Condor Technology Solutions, CTC Comms Group, Deutsche Telekom, divine, DSL.net, Electric Lightwave, Equant, FiberNet, Getronics, Golden Telecom, Gray Comms Systems, Harrier Group, Hynix Semiconductor, Industri-Matematik International, Infowave Software, Keyware Technologies NV, Madison River Comms, Merant, Microvision, National Semiconductor, Navtech, Norsat International, Proginet, Ptek Holdings, Satmex, Scitex, SDL, TiVo, Top Image Systems, US Unwired, USData, Vestcom International, Volt Information Sciences, Wave Systems and Webb Interactive Services.

Other financial news included a share buy-back announcement from American Software; profit warnings from AT&T Wireless, InterVoice-Brite, McData, Pace Micro Technologies, Software AG and Unique Broadband Systems; a share split announcement from Superior Networks; and an IPO announcement from Anteon International (services).

Locally

Aqua Online (-18.2%)
Dectronic (+100%)
Elexir (-25%)
FrontRange (+57.6%)
Idion (+22%)

Integrear (-55.7%)

Micrologix (+58.3%)
OSI (+66.7%)

Unihold (+18.2%)

Y3K (+500%)

Internationally

Bell Canada (+53.8%)
Digital Lightwave (+46.9%)
Flag Telecom (+42.4%)
NTL (+44.4%)
Riverstone Networks (60.9%)
Rural Cellular (+53.4%)
Sanmina (+42.7%)
SBA Comms (+106.5%)
ScanSoft (+41.6%)
Stratex Networks (+44.3%)

The "Venter Empire" seems to be embarking on its "Grand Plan". In December last year, Fintech was de-listed with its constituent pieces split between Altron and BTG. Last week the announcement by Powertech suggests it will be absorbed by Altron. BTG bought Old Mutual`s 40% stake in Uskotec very recently and Altech has just sold off its 40% stake in Alcatel Altech Telecomms. What`s next? Is this the start of a major international initiative?