Last week: MGX disposal, SNO report

Acquisitions by HP and Vodafone and some imminent major product announcements from HP dominated the international world of IT and telecommunications last week.

The analysis report from Next Generation on the two short-listed second national operator bids suggests that the situation is far from resolved.

Paul Booth, MD, Global Research Partners

At home, MGX`s disposal of Software Futures and Next Generation`s analysis report on the second national operator bids stole much of the local ICT headline news.

* we saw very good annual results from Aplitec (revenue and net profit both well up) and WebSoft MAVeN (revenue and profits both well up);

* satisfactory 'continuing operations` year-end numbers from Comparex (revenue marginally up and back in the black);

* good interim figures from Control Instruments (revenue and net profit both up);

* a Q3 loss from Spescom Software, Spescom`s US arm (revenue up very slightly) and a profit warning from Set Point.

Other local news included:

* the formation of Affirmative Technology Services from the merger of CSMG, Z-IT and Hephaistion;

* the launch of Nambiti NextWave Consulting as the first black-owned SAP special expertise partner, a joint venture between Nambiti Technologies and Next Wave Collaborative Business Solutions;

* the appointments of Adam Jones as MD of Namitech Holdings and Isaac Zowa as MD of ATS;

* Dimension Data subsidiary, Datacraft Asia, sold off its stake in Singapore cabling company, EMS Wiring Systems, for $400 000;

* MGX sold off its Software Futures subsidiary for R20 million, 20% of the valuation of the company in 1998 when 60% of it was sold to CCH; and

* Pinnacle decided not to de-list from the JSE.

* Additionally, the Exact/Ferrer consortium has declined to better the Sage bid for Softline.

The analysis report from Next Generation Consultants on the two short-listed second national operator bids suggests that the situation is far from resolved, with shortcomings being highlighted in respect of both submissions. A recommendation to the minister is due from ICASA on 28 August, and indications are that this is not likely to be a firm endorsement for either of the two contenders.

New local distributorships included that of Adobe by The Core Group and that of Clearswift by Duxbury Networking.

* we saw the closure of Ceyba, a Canada-based networking company; and

* the formation of a joint venture between Infineon Technologies AG and United Epitaxy for the manufacturing of fibre optic components.

Additionally, look out for the acquisition of Japan Telecom`s fixed-line business from Vodafone and the results of Vocalis`s discussions with Netdecisions over the sell-off its main trading division.

Other international news included:

* the appointments of John Blanchard as chairman of ADC, Simon Duff as CEO of NTL, James Fontaine as president and CEO of Microtune, Cameron Hunter as president and CEO of Norsat International, Keith Locke as president and CEO of TelSpan, Gary Morgan as chairman and CEO of World Information Technology, Richard Roscitt as president and COO of MCI, Robert Switz as president and CEO of ADC and Gary Warren as CEO of AppForge;

* the resignations of Barclay Knapp as president and CEO of NTL, Richard Roscitt as chairman and CEO of ADC, Sam Saifi as president and CEO of ION Networks, Yutaka Ueda as president and CEO of Norsat International and Hakan Uzan as chairman of Telsim; and

* job loss announcements from Applied Materials, AT&T Wireless, BearingPoint and ScanSoft.

We saw excellent* figures from Apogee Technology (back in the black), Innovative Software Technologies, ISYS (back in the black), Miltope, Overland Storage (back in the black), Xfone and YP.Net; and very good* numbers from ADIC (back in the black), Advanced Photonix (back in the black), Ampex, Bonso Electronics, Open Text and SCO Group (back in the black).

Good figures* were recorded by Analog Devices, BEA Systems, CACI, Comdisco, Computer Sciences, Dell, ebix.com, EchoStar Comms, Elbit Systems, ePlus, Innovative Solutions & Support, Insignia Solutions (back in the black), Interlott Technologies, iPIX (back in the black), Island Pacific (back in the black), MicroTel International, OAO Technology Solutions, Oxford Networks, Paragon Technologies, PlanGraphics (back in the black), Primus Australia, SafeGuard (back in the black), ScanSource, TTR Technologies (back in the black), Turkcell, UnitedGlobalCom and Unity Wireless (back in the black).

Satisfactory* figures were posted by ACS-Tech80, Communicate.com (back in the black), Delcam, Deutsche Telekom (back in the black), DG Systems, Digital Broadband Networks, Groupe Steria SA, Magic Software (back in the black), MasTec, Maxim Integrated Products, Microcell Telecomms (back in the black), National Datacomputer (back in the black), Proforma, Relm Wireless, Sopra SA, Techdyne, Unilog SA and United Pan-Europe Comms NV (back in the black).

Mediocre* returns came from Advanced Imaging, Applied Digital Solutions (but back in the black), Arc Wireless Solutions, Atos Origin SA, Brocade Comms, D&E Comms, eSpeed, Getronics, Groupe Sylis SA, Infodata, INSCI, Matav, Neon Systems (but back in the black), Pomeroy IT Solutions, Teknowledge, Transiciel SA and United Systems Technology.

Very poor results* were posted by i2 Technologies (but back in the black), Integral Systems, InterCept, Lason, PFSweb (but back in the black), Synergx Systems and ViaSat (but back in the black).

Losses* came from 3D Systems, Access Worldwide, ACT Teleconferencing, Aegis Comms, AESP, Aether Systems, AirGate PCS, AirNet Comms, Aladdin Systems, Alpine Group, Anacomp, Anaren, APA Optics, Applied Materials, Arel Comms & Software, Artemis International Solutions, ATX Comms, Ault, Barrister Global Services Network, Bottomline Technologies, Catalyst International, Celerity Systems, Cellular Technical Services, Choice One Comms, Citadel Security Software, Cognitronics, Comdial, CommScope, Crescent Comms, Crosswave Comms, CyberGuard, Dacom, Datatrak International, Daval Comms, Delphax Technologies, Digex, Digital Angel, Digital Fusion, Diversified Security Solutions, Durlacher, enherent, ESI, Ezenia!, FairMarket, FairPoint Comms, FiberNet, Gilat Satellite Networks, Globalstar, GoAmerica, GSE Systems, Guardian Technologies International, Hanaro Telecom, HPL Technologies, Hynix Semiconductor, i3 Mobile, IBSS, IIJ, Innodata, Integrated Information Systems, Intelli-Check, Intelligroup, Interplay, InterTAN, Invisa, IPC Acquisition, ITC^DeltaCom, Ixos Software AG, JMAR Technologies, Jenoptik, Knology, Laser Technology, LightPath Technologies, LML Payment Systems, Loral, MAI Systems, Merrimac, Microtune, Microvision, Moving Bytes, NCTI, Neoforma, NeoMagic, NeoMedia Technologies, Netia SA, NetNation Comms, Norsat International, NTL, OfficeMax, ORBIT/FR, ParkerVision, Path 1 Network Technologies, Peco II, Pegasus Comms, PerfectData, PPT Vision, Primus Knowledge Solutions, Prologic, Qsound Labs, Raining Data, RCN, Reptron Electronics, Sagent, SBA Comms, SBS Technologies, ScanSoft, Scitex, SeaView Video Technology, Simtek, Sonic Foundry, SRS Labs, Storage Engine, Stronghold Technologies, Superconductive Components, Systemax, TechTeam Global, Telebyte, TeleTech Holdings, TeraForce Technology, Timeline, Top Image Systems, TTI Telecom, UbiquiTel, Ultradata Systems, US Dataworks, Veramark, Versatile Mobile Systems, VerticalNet, VIA NET.WORKS, ViewCast, VillageEDOCS, VirTra Systems, ViryaNet, Visual Data, Vyyo, Wave Systems, Wind River Systems, WMS Industries, WPCS International, XO Comms, Xybernaut and Zi.

Other financial news included share offerings by Dot Hill Systems; share buy-back announcements from Datastream Systems, Hypercom and Manhattan Associates; results/profit warnings (often veiled) from AT&T Wireless, BearingPoint and Getronics; share split announcements from Aspen Technology, HyperFeed Technologies (reverse) and World Information Technology; a planned IPO on the LSE from Wolfson Microelectronics; and Horizon PCS`s filing for Chapter 11 bankruptcy protection.

Locally

Control (+41.3%)
Cycad (+100%)
Infowave (+12.5%)
MGX (-35.3%)
Prism (+18.5%)
Sekunjalo (+18.7%)
Sethold (-27.3%)
Trematon (+26.8%)
Stella Vista (+150%)
Zaptronix (+300%)

Internationally

American Superconductor (+70.3%)
Auspex Systems (+34.1%)
Avanex (+30.5%)
Covad Comms (+32.2%)
IDN Telecom (+42.9%)
NetBenefit (+52.2%)
NTL (-41.2%)
Pegasus Satellite Comms (-34.3%)
SEMX (-42.9%)
Silverline Technology (-33.5%)

In terms of indices, Nasdaq was up 35% and the JSE was up 1.7% for the week.

Last week saw the presentation of this year`s Age of Innovation and Sustainability Awards at an event organised by Axius Publishing and Da Vinci Institute for Technology Management.

The award in the Economic ICT category went to marketing agency, Three Blind Mice, for its innovation in satellite-linked broadcasting for educational and marketing purposes. It was also one of the two Grand Prix winners.

* NB

Guidelines for the categorisation of results are as follows. The figures are always in comparison with the equivalent period for the previous year; pro forma numbers are ignored (the terminology may vary slightly from country to country).

* Excellent: Both revenue and net income growth are in excess of 50%.

* Good: Both revenue and net income growth are in excess of 10%.

* Satisfactory: Revenue is within 10% of previous year and net income is up.

* Mediocre: Either revenue and/or net income is down.

* Very poor: Net income is less than 1% of revenue.

* Loss: A loss has been recorded.