In the interim...

The surprise $777 million bid by Philips Electronics for VLSI Technology was the key international event in the IT world last week; while at home the interim results from a host of companies was top news.

• the announcement of excellent interim figures from Grintek;
• good interim numbers from Computer Services and Brainware;
• satisfactory interim results from Rectron Holdings and Siltek; and
• the debut in SA of a local subsidiary of Swedish ERP player, Intentia, previously handled via Surtsey Systems.

Grintek apart, there was minimal impact of these numbers on the relative share prices of the companies concerned. It seems there are too many unanswered questions regarding their full-year results and whether they will be in line with expectations.

[Local]

Local Cautionary Notices (see attachment)

Other local news included:

• the announcement by Mustek that it has appointed Taita Holdings as its corporate advisor;
• Sagent Technology, a data warehousing software company, has opened a South African office;
• Decillion, a financial company with a significant IT content, will list on 10 March; and
• a new technology group with a 49% black empowerment stake, Ukukhanya Technologies, which launched last Friday, intends to list in May 1999.

Additionally, Wang Global South Africa appointed Charles Proudfoot as its new MD and the first of a glut of exhibitions for 1999 in Gauteng took place last week, with questionable success.

• the announcement by Silicon Graphics on the proposed sell-off of MIPS common stock.; and
• the news that further cutbacks in expenditure from Baan have been initiated ahead of tomorrow's results, including the cancelling of two user group shows and a possible sell-off of Coda Software, which it acquired only last year, in a move intended to bolster its financial offerings.

[International]

It seems there are too many unanswered questions regarding their full-year results and whether they will be in line with expectations

Other international news included the announcement that Platinum Technology is to cut 15% of its staff, take a significant restructuring charge ($110 million), close 12 of its offices and consolidate its six business units into three units. Additionally, Acer intends to break-off its software division into a separate company sometime in 1999 in order to strengthen its focus in this area.

We saw excellent figures from Access Worldwide Comms, Bell Microproducts, Intuit (better than expected), London Bridge Software Holdings, LTX and US Lec.

Losses were reported by ACT Teleconferencing, ADC Comms, AFP Imaging, BEA Systems, ICG Comms, InteliData, Lycos (revenue up over 100%), Nextel Comms, NEXTLINK Comms, Objectshare, Ortel, PSINet, Tel-Save.com, SCM Microsystems (revenue well up), Startec Global Comms., Tecsys and Telxon.

Good numbers were recorded by ACT Manufacturing (back in the black), Admiral, CHS Electronics, Comcast (well back in the black), DocuCorp, GSE Systems (back in the black), Guardian IT, Intelliquest, Lorien, ITnet, Merisel (back in the black), MicroAge (back in the black), Newbridge Networks (back in the black), Novell, Simware, Symbol Technologies (better than expected), Systems International Group, Tekgraf (back in the black, just) and Wind River Systems (back in the black). Satisfactory results came from Arrow Electronics, Autodesk, CrossKeys Systems, ICM Computer Group, JD Edwards, Merant and Scan-Optics.

Mediocre returns came from Avert and Tandy, with very poor results from Matsushita Electric Industrial and Teknowledge.

Other financial news included profit warnings from MindSpring Enterprises, Mitsubishi and Toshiba; stock splits from EMC; and the revealing news that NEC`s Packard Bell unit posted almost $1 billion in losses in the last two years.

Locally

Aplitec (+28.4%)
Cyberhost (-28.6%)
Dectronic (-20%)
Fintech (+18.3%)
Micrologix (-17.4%)
Selective Financial Group (-19.8%)
Whetstone (-15.8%)

Internationally

Acorn (+25.9%)
ARM Holdings (+24.2%)
CHS Electronics (-41%)
Creative Computers (+27.3%)
Datapoint (+60%, but off a very low base)
Digital River (+24.2%)
Intuit (+23.9%)
Maxtor (-30.5%)
Network Solutions (+29%)
Quality Software Products (+33.6%)
Read-Rite (-23.1%)
Security First Technologies (+35.7%)

The last few weeks have seen the emergence of the key players in the "portal" business, with a host of acquisitions. Microsoft is notable by its absence from the top 10 in this focused area, although the organisation still lists it as one of its key objectives. Could this be a new Microsoft company ahead of the outcome of the DOJ trial?