Lexmark`s local venture grabs headlines

The $2.7 billion merger of Solectron and C-MAC and the bad news from Gateway and Cisco dominated the international world of IT and telecommunications last week.

[VIDEO]At home, the Lexmark acquisition of Venture Computer, and the bad news from Idion and Ixchange took much of the local headline space.

• we saw good year-end figures from DNA Supply Chain Investments;
• a full-year loss from I-Fusion (revenue also down);
• a half-year loss from Idion; and
• a profit warning from Ixchange.

[Local]

Other local news included:

• the acquisition of Venture Computer, one of the largest privately-owned IT companies in SA, by Lexmark International;
• an R80 million cash injection from an international consortium into Rubico;
• the move by Systems Publishers to make Computerweek a monthly publication;
• the move by Johnnic CEO, Paul Edwards, to head up M-Cell; and
• the postponement of the new telecoms amendment bill by Cabinet.

Additionally, Telkom has signed an agreement with ITXC to exchange voice over Internet protocol traffic.

• we saw the news that Gateway is to withdraw from the European Market and maybe even from the Asian market as well (does this mean SA?);
• the name change of Netpliance to TippingPoint Technologies;
• the completion of the spin-off by AT&T of Liberty Media; and
• the announcement that Microsoft has requested the Supreme Court to overturn the anti-trust ruling.

Look out for the outcome of the $25.7 billion offer led by West LB, a German Bank consortium, for British Telecom`s fixed-line network.

Paul Booth, MD, Global Research Partners

Additionally, look out for the sell-off by Lucent of its private equity and venture capital portfolios; the outcome of the $25.7 billion offer led by West LB, a German Bank consortium, for British Telecom`s fixed-line network; the sell-off by Reliant Resources of its telecoms unit; and the winner of the battle for Comdisco`s computer services unit, currently being fought by HP and SunGard Data Systems.

[International]

Other international news included:

• the appointments of Lowell B Hawkinson as chairman, president and CEO of Gensym, Eric Schmidt (ex-Novell) as CEO of Google, Austin Shanfelter as president and CEO of MasTec, Mark Thompson as president and CEO of Big Bear Networks, and Robert Walston as president and CEO of Liberty Livewire;
• the resignations of Yoav Chelouche as president and CEO of Scitex, and Fernando Espuelas, CEO of StarMedia Network; and
• job loss announcements from Aspen Technology, CacheFlow, Intraware, Iomega, Lucent Technologies, Previo, Rhythms NetConnections and Serena Software.

We saw excellent figures from California Software (back in the black), FiberCore (back in the black) and The Innovation Group.

Good numbers were recorded by Aelita Software, Crystal Decisions, Daisytek, Gentner Comms, II-VI, Jenzabar, Merrimac, Micro General, Pixar, Printware (back in the black), ViaSat, Wi-LAN and Xplore Technologies; and satisfactory ones by Cablevision Systems (back in the black), DRS Technologies, Entercom Comms, KPMG Consulting, Netlojix (back in the black), Syntel, Temenos and Ultimate Electronics.

Mediocre returns were posted by Anaren Microwave, Bogen Comms International, Camtek, CommScope, Danka Business Systems, Emerson, En Pointe Technologies (back in the black), GCI (but back in the black), GSE Systems (but back in the black), Integrated Circuit Systems (but back in the black), Korea Telecom, MAI Systems, MasTec, Micros-to-Mainframes (but back in the black), Mobilcom, MSX International, Netsmart Technologies, Nortech, Orbit International (but back in the black), Paravant, Pomeroy Computer Resources, Primus Telecom (but back in the black), Tarantella, Time Warner Telecom and Ziff Davis Media.

Very poor results came from Cisco, FlexiInternational Software, Hytek Innodata, Microsystems, Overland Data, Panja (but back in the black), Tyler Technologies (but back in the black) and Vestcom.

Losses came from ACS-Tech80, Adelphia Business Solutions, Advanced Electronics Support Products, Aegis Comms, Alamosa, Allied Riser Comms, AOL Latin America, APA Optics, ARC Wireless, Arch Wireless, Artisoft, Aspen Technology, AT&T Latin America, Bottomline Technologies, Brokat AG, BTI Telecom, chinadotcom, Citizens Comms, Clear Channel Comms, Colt Telecom Group, CompleTel, Conductus, Creative Technology, DAG Media, Data Return, Data Systems & Software, Datalex Plc., Datatrak International, deltathree, DG Systems, divine, EasyLink Services, ECI Telecom, Elbit, Elbit Vision Systems, Electronic Tele-Comms, Elron Electronic Industries, Emcore, Emulex, Entravision Comms, Epic Data, Flag Telecom, Focal Comms, FOCUS Enhancements, Franklin Electronic Publishers, FYI, Genuity, GlobalNet, GoAmerica, Golden Telecom, Gray Comms Systems, GT Group Telecom, Howtek, Hutchison Telecomms Australia, Indigo NV, Infocrossing, Information Architects, Inprimis, Insight Comms, INT Media Group, Integral Vision, InteliData, IntelliCorp, Interlinq Software, iPCS, JMAR Technologies, Lantronix, Leapnet, Liberty Digital, Loral, Luminant Worldwide, Maxtor, mediacom Comms, Mediaplex, MEMC Electronic Materials, Merisel, Meta Group, Micrografx, Mpower Comms, Multi-Link Telecomms, Navidec, Netia Holdings, Netpliance, Network Engines, Notify Technology, o2wireless, OAO Technology, OneLink, Onyx Software, ORBIT/FR, Pac-West Telecomm, Paragon Technologies, Pegasus Comms, PhotoWorks, PurchasePro, Questron Technology, Raindance Comms, Rediff.com, Robotic Vision Systems, Rural Cellular, Safeguard Scientifics, SAMSys Technologies, SatCon Technology, SBA Comms, Scitex, SEEC, Sentry Technology, Silicon Valley Research, Smartlogik Group, SoftNet Systems, SpectraSite, StarMedia Network, Systemax, TACT, Technical Comms, Tele2 AB, Telenetics, Telesp Celular Participacoes, Telesystem International Wireless, The Alpine Group, Tioga, Triton PCS, TTR Technologies, US Unwired, Verado Holdings, Versatel Telecom International NV, VIA NET.WORKS, Viant, Viasource Comms, Wave Systems, Western Wireless, Winland Electronics, Wireless Facilities, XATA and Zap.com.

Other financial news included profit warnings from Aspen Technology, CacheFlow, Cisco, Clear Channel Comms, Colt Telecom, CompleTel, Creative Technology, Emulex, Engage, Genuity, Guardian IT, Hutchison Telecomms Australia, Jupiter Media Metrix, Kewill Systems, Loral, Serena Software, TDK, Verity, Versatel and Ziff Davis Media.

There were share split announcements from CorVel, Netpliance (reverse) and VersaCOM International; and a good IPO from Omnicell (supply chain management software). Furthermore, Covad Comms Group has indicated that it will file for Chapter 11 bankruptcy protection and NTT DoCoMo is now reconsidering its New York and London listings.

Locally

Cape Empowerment Trust (+66.7%)
Datatec (-21.8%)
Dectronic (-25%)
EC-Hold (+42.9%)
Elexir (-25%)
I-Fusion (+61.1%)
Maxtec (-33.3%)
Pinnacle (+40%)
Stella Vista (-25%)
UAM (+25%)

Internationally

Atlantic Telecom (+66.7%)
Covad Comms (+36.5%)
Enherent (+80%)
Enterasys (-34.9%)
Franklin Telecoms (+50%)
Guardian IT (-46.6%)
iTouch (-34.8%)
Madge (-53.8%)
MEMC Electronic Materials (-69.5%)
Verity (-42.2%)

We are all very aware of the pervasive nature of IT and telecommunications. This has now evidenced itself in the first-ever Top 100 Brands rating by Business Week, in which IT and telecoms names dominate the top 50 slots with 19 entries. The relevant top ratings are Microsoft at number two, IBM at number three, Nokia in fourth place, Intel in fifth place, and AT&T at number 10.