International rumours, local de-listing take IT spotlight

The on-going woes of Xerox, and the rumours surrounding both Lucent and Motorola and their financial situations, dominated the international world of IT and telecommunications last week.

A dual listing for Telkom may well be on the cards later this year, with the public enterprise ministry recommending the NYSE, while others view the LSE as a better bet.

Paul Booth is MD of Global Research Partners

At home, the de-listing of M-Web and the publication of a number of full-year and interim results stole much of the local headline space.

• we saw full-year losses from EC-Hold (although revenue up nearly threefold) and Explorer (revenue up but losses over twice the revenue);
• excellent half-year numbers from ERP.com (revenue and earnings both well up);
• good interim figures from MB Technologies (revenue and earnings both up); and
• an interim loss from ValueCom.
• Additionally, a dual listing for Telkom may well be on the cards later this year, with the public enterprise ministry recommending the NYSE, while others view the LSE as a better bet.

[Local]

Other local news included:

• the news that Naspers is to de-list M-Web;
• the resignations of Dale Packham, CEO of Planit Technology Holdings together with his brother Brian, who was also a fellow director; and
• the announcement that ValueCom is to undertake a capital distribution and following a liquidation dividend, wind-up the company, with de-listing likely to take place before the end of June 2001.
• Additionally, CS Holdings announced a joint venture with Consilience Technologies of India to boost the local IT skills base in SA;
• Dimension Data`s Auto-Mate laid-off some of its staff as part of its rationalisation and restructuring plan; and
• the appointments of Chris van Niekerk as country manager for 3Com SA and Ken Jarvis as CEO of Idion`s SA operations were promulgated.

• we saw the cancellation of the merger between Ariba and Agile Software;
• the name changes of BSDi to iXsystems and Infobank to Izodia; and
• the creation by SAP of a new subsidiary, SAP Portals, that will incorporate Top Tier acquired last month and its newly announced alliance with Yahoo.

Look out for further news on the precarious situation at Xerox. This time it has delayed the filing of its annual report with the SEC, since its auditors need more time before they could sign off the figures. The SEC is already investigating various irregularities in Mexico and allegations of the way long-term contracts have been booked. Additionally, Motorola is persistently denying liquidity rumours.

[International]

Other international news included:

• the appointments of Timothy Jenson as CEO of Merisel, Eric Larsen as CEO of Netcentives, and Michael Pickett as CEO of Onvia;
• the resignation of Jiri Nechleba, CEO of Interlinq Software; and
• job loss announcements from Akamai, Alcatel, Ariba, BE, BMC Software, BroadVision, CommScope, Egghead.com, Entrust Technologies, FirePond, i2 Technologies, Ingram Micro, Inktomi, Interliant, Interlinq Software, Internet.com, iPIX, Meta Group, MicroStrategy, NEC, Netcentives, ON Semiconductor, Onyx Software, Segue Software, Selectica, SilverStream Software, Solectron, Sycamore Networks, Tellme Networks, TiVo and Winstar Comms.

We saw excellent figures from Metron Technology NV.

Good numbers were recorded by China Unicom, Internet Commerce & Comms and Telebyte; and satisfactory ones from Cognos.

Mediocre returns were posted by Gtech Holdings, Oce NV and Teknowledge; while very poor results came from Teltronics.

Losses came from Adelphia Business Solutions, Adelphia Comms, Akamai, ASA International, Ascendant Solutions, Aspen Technology, Brilliant Digital, Davel Comms, eSat, FullNet Comms, Glentel, Global TeleSystems, Globalstar, GSE Systems, IKOS Systems, Infodata, Intraware, Intrinsyc, iPIX, Liberty Surf, Lightning Rod Software, Loudcloud, LSI Comms, MicroStrategy, National Datacomputer, NQL, Pacific Webworks, PentaStar Comms, PhoneTel Technologies, Photogen Technologies, Pilat Technologies International, Selectica, Stonepath Group, Storage Area Networks, Storage Computer, SurfControl, Systems Union Group, TEK DigiTel, Telemonde, Thinkpath, United Pan-Europe Comms NV, USOL, VendTek, Vizacom, WatchGuard Technologies, WidePoint, Worlds.com and Zenith Electronics.

Other financial news included profit warnings from Acxiom, Adtran, Agile Software, Agilent Technologies, Alcatel, American Superconductor, Ariba, Autonomy Corp Plc., Bell Microproducts, Benchmark Electronics, BMC Software, Broadbase Software, BroadVision, Cadmus Comms, Clarus, Click Commerce, Cognos, Commerce One, CommScope, Compuware, Concord Comms, DMC Stratex Networks, Documentum, E.piphany, Emulex, Entrust Technologies, Epicor Software, Eprise, EXE Technologies, Extreme Networks, FileNet, Gemplus, Hyperion, i2 Technologies, Infineon, InforMax, InfoVista, Inktomi, Interliant, Interlinq Software, Kana Comms, Keynote Systems, Kronos, Marvell Technology, Metawave Comms, MicroStrategy, Microtest, MMT Computing, Onyx Software, Phoenix Technologies, Pioneer-Standard Electronics, Pomeroy Computer Resources, RadVision, Rainbow Technologies, Rational Software, Recognition Systems, Redback Networks, Remedy, Resonate, Sagent, Sienna Wireless, SilverStream Software, Sonera, Sybase, Sycamore Networks, Talarian, Tekelec, Tellabs, WebMethods and Xenos; and a share split announcement from Vitrix (reverse).

Additionally, PSINet announced it may be re-organising under bankruptcy laws, and has had its trading on Nasdaq halted; and Winstar, one of the largest alternate telecoms companies in the US, may also be forced into bankruptcy.

Locally

Acuity (+100%)
Crux (-26.1%)
Cyberhost (-66.7%)
Elexir (-33.3%)
ERP.com (+43.8%)
Explorer (-75%)
Maxtec (+25%)
PTH (+50%)
Stella Vista (-25%)
Synergy (-25%)
UAM (-27.6%)

Internationally

Aspen Technology (-46.1%)
Autonomy (-55.8%)
Broadbase Software (-64.5%)
BroadVision (-46.8%)
Comdisco (-66.6%)
Flag Telecom (-47.1%)
Lightning Rod Software (-47.2%)
Network Plus (-55.2%)
Onyx Software (-63%)
Winstar Comms (-80.3%)
XO Comms (-52.7%)

With Easter coming up this weekend, the next issue of Booth`s Bites will be published on 23 April, when we will again be at the beginning of another cycle of quarterly results. These numbers are not likely to be pleasant reading, although as usual there will be some surprises.