Job losses, profit warnings continue

The $9 billion acquisition of Cable & Wireless Optus (Australia) by Singapore Telecomms, the merger of Interact Commerce and The Sage Group, the acquisition of TopTier by SAP, and the continued flow of job loss announcements and profit warnings dominated the international world of IT and telecommunications last week.

[VIDEO]At home, the official launch of arivia.kom and the publication of numerous local financial results stole most of the local headline space.

On the local front

• we saw satisfactory full-year figures from Square One Solutions (revenue static but income up);
• mediocre full-year numbers from Advtech (revenue well up but earnings well down) and UAM (revenue and earning both up a little);
• disappointing year-end results from Aries Investment Holdings (revenue just up, but earnings significantly down and just in the black), and ShawCell Comms (revenue and earnings well down);
• a full-year loss from Acuity (revenue slightly up) and SecureData;
• good interim figures from Global Technologies (revenue and earnings both well up); and
• the listing of Bytes Technology Group (ex-Fintech`s computer divisions, and Usko).

[Local]

Other local news included:

• the official launch of arivia.kom;
• the awarding of the Business Report Growth Award (five-year growth category) to Dimension Data for the second consecutive year;
• the opening of an office in Swaziland by Sempress;
• the appointment of Daniel Pringle as executive chairman of Hicor; and
• the placement of Top Info Technology Holdings in final liquidation.

• we saw the name changes of BitWise Designs to AuthentiDate Holding, FI Group to Xansa and SVI Holdings to SVI Solutions;
• the news that MarchFirst is intending to sell-off some of its assets;
• the announcement by Cisco that it has put a temporary hold on any further acquisitions (Cisco has made more acquisitions in the last few years than any other technology company); and
• the announcement by Acer that it has scrapped its plan to split into two entities.

Look out for the fate of Geac Computer, which has failed to find a buyer since it announced its intentions to sell-off itself or some/any of its bits.

Paul Booth, MD, Global Research Partners

Additionally, look out for the fate of Geac Computer Corp, which has failed to find a buyer since it announced its intentions to sell-off itself or some/any of its bits last September. Integra, the French Web site hosting company, is also looking for a suitor. Also watch out for news of some of the senior executives at British Telecom and Vodafone; the possible merger of Telecom New Zealand and Hutchison Telecomms Australia; and the moves by Tiscali to snap up two of its European rivals.

[International]

Other international news included:

• the appointment of James Lynch as CEO of Sitel; and
• job loss announcements from ADC Telecomms, Aiwa, Blue Martini Software, C-Cor.net, Chinadotcom, Conexant, Cysive, Dolphin Telecom, eMachines, Ericsson, Geac Computer, GigaMedia, MarchFirst, Metabox AG, Nokia, Nortel Networks, Palm, Panja, PC Connection, Pixelpark, PRI Automation, SciQuest, Viant and VTech Holdings.

We saw excellent figures from FiberCore (back in the black), Shaw Comms and Surface Technology Systems.

Good numbers were recorded by Dionics, KPN, ReadSoft (back in the black), Recticon Enterprises and Tech Data; and satisfactory ones by Sonic and Telecom Italia Group.

Mediocre returns came from CellStar, Corel (but back in the black), ID Systems (but back in the black), MicroTel (but back in the black), Palm, Science Systems and Simtek.

Losses came from 3dfx, Accent Color Sciences, Affinity Internet Holdings, Algo Vision, Alysis Technologies, AT&T Latin America, ATI Technologies, Aztec Technology Partners, Birch Telecom, Blue Zone, BTI Telecom, Cabletron Systems, Data Systems & Software, DataVoN, Emmis Comms, Enlighten Software, Equant, GigaMedia, HEI, Hybrid Networks, I-Link, IDS Group, IIS Intelligent Information Systems, Intelispan, Intelligent Systems, iPIX, Manugistics, Mcglen Internet Group, MGI, Micron Technology, Netpliance, NTN Comms, Optelcom, Pacific Century CyberWorks, PrimaCom AG, Rage software, Redbus Interhouse, Science Dynamics, Sopheon Plc., STM Wireless, T-Online, TeraForce Technology, Think Tools, TigrSoft, UBICS, Ultrak and Zap.com.

Other financial news included profit warnings from Acxiom, ADC Telecomms, Aiwa, Blue Martini Software, C-Cor.net, Cirrus Logic, Conexant, Cysive, eMachines, Foundry Networks, Genesis Microchip, GigaMedia, Interactive Objects, Intershop Comms AG, JNI, Liberate Technologies, Nortel Networks, Netplex, Novatel Wireless, Palm, PC Connection, Pixelpark, Plexus, PMC-Sierra, PRI Automation, Psi Technologies, SafeNet, Sitel, T-Online, Tech Data, Via Net.Works, Viasystems, Vitesse Semiconductor, VTech Holdings, Vyyo and Wireless Facilities.

There was also a "satisfactory" (initial price lower than originally planned) IPO from Agere Systems (Lucent spin-off); and withdrawn IPOs from Convergent Networks and ILX Lightwave. Additionally, it looks as if World Access might seek Chapter 11 bankruptcy protection.

Locally

Acuity (+56.3%)
Casey (-33.3%)
Crux (+35.3%)
Cyberhost (+50%)
Dectronic (+260%)
E-Data (-30%)
Elexir (-25%)
Explorer (+33.3%)
Idion (-35%)
JemTech (+25%)
OSI (+80%)
Pradatech (-36.4%)
SecureData (+42.9%)
Stella Vista (-28.6%)
Synergy (-25%)
Y3K (+50%)

Internationally

European Telecom (+65.8%)
IDS (+79.8%)
Intec Telecom (-59.3%)
Interact Commerce (+50.4%)
Meta Group (-69.2%)
Micron Technology (-46.2%)
PNC Tele.com (+42.9%)
SafeNet (-65.6%)
Trend Micro (-48.2%)

Just when its appears that the appeal by Microsoft against the Department of Justice rulings in the US is moving in its favour, the European Commission may well be resurrecting new objections against the software giant that it wishes to persue. It seems this saga is destined to be dragged-out for some time to come on both sides of the Atlantic.