Masses of losses

This week sees the listing of AST-A, the combined Abraxas/AST Group, and the 'MIH-free` M-Web shares.

The latest quarterly losses by Baan, Compaq, Nortel Networks and Storage Technology, the significant job cut-backs by Compaq and EDS, and the acquisition by NTL of the Cable & Wireless cable TV interests dominated the international IT world last week. At home, the new overseas acquisitions of Datatec and Dimension Data made headlines during an extremely quiet week.

• the publication of maiden results by NetActive, which recorded its expected loss closely in line with the forecast, but from turnover at approximately 85% of that forecast; and

• the conclusion of the Baan South Africa buy-out from its Dutch parent.

[Local]

Local acquisitions, mergers, investments etc (see attachment).

Local Cautionary Notices (see attachment).

Local Listing calendar (see attachment).

Other local news included:

• result warnings from Jasco and Powertech;

• news that Unihold intends switching its listing to the IT sector next month;

• the announcement that the government intends to list Telkom on the JSE, and that one of its foreign partners, Telekom Malaysia, also intends to list its foreign subsidiary holdings on a foreign bourse; and

• publication by MGX of its excellent annual results.

• the announcement that Paul Maritz, one of the top executives at Microsoft, has decided to give up most of his operational responsibilities, but will remain at the company for the immediate future;

• the announcement that EDS is to cut even more jobs than those announced earlier this year;

• HP

has called its new test and measurement spin-off company, Agilent Technology;

• that Compaq will shed 6 000 to 8 000 jobs following its Q2 loss;

• and rumours (denied) that France Telecom is to sell its stake in Sprint or its stake in its JV with Global One. Additionally, it seems that Cable & Wireless is negotiating with Cambridge Technology Partners, the US-based systems integrator, with a view to building expertise in the emerging computer telephony integration area.

[International]

International acquisitions, mergers, joint ventures etc (see attachment).

We saw excellent figures from AT&T Canada, Consolidated Graphics, Dynamic Details, IMS Group (half-year), Macromedia, MCI WorldCom, NEON Systems, SDL, Timeline and Xircom.

Losses came from About.com, AboveNet Comms, Anadigics, AppNet, Ariel, Auspex Systems, Axent Technologies, Baan, Centura Software, Clarent, Compaq (but better than expected), Computron, Cotelligent, Creative Computers, CTC Comms, CyberCash, Datawatch, EarthWeb, Egghead.com, Fischer Imaging, General Magic, Geoworks, ICG Comms, Indigo, InfoSpace.com, Infowave, Insignia Systems, Intelligent Systems, Intergraph, Internet America, ISS, JDS Uniphase, Juno Online Services, Marimba, MEMC Electronic Materials, Merisel, Meta4, MindSpring Enterprises, Mitel, Mylex, NetManage, NetObjects, Netrix, Nortel Networks, OneLink Comms, Paradyne Networks, PSINet, QMS, Quad Systems, RCN, Segue Software, Silicon Valley Group, Sitek, Softworks, Smith Micro, StarMedia, Storage Technology, Stordata Solutions (half-year), Summit Design, Sync Research, Tech Squared, Template Software, Wavecom SA, World Access, WorldGate Comms and Ziff-Davis.

Good numbers were recorded by ACS, Acsys (back in the black), Actel, Active Voice (back in the black), Admiral (half-year), AT&T, Capita Group (half-year), Cognitronics, Computer Sciences, Cox Comms (back in the black), Datastream Systems, Diagonal (half-year), Electronic Processing, Imation, Information Holdings, Legend Holdings, Lernout & Haupsie, Mastech, Mecon, Mitek Systems, New Horizons, PC Connection, Qwest Comms (back in the black), Remedy, Samsung Electronics (half-year results), Sapiens International, Sykes Enterprises, Taiwan Semiconductor, Telemetrix and Xionics (back in the black).

Satisfactory numbers came from ACT Manufacturing, Alcatel, British Telecomms, EDS, GTE, IKON Office Solutions, Ingram Micro, Lam Research (back in the black), Micro Warehouse (back in the black), Pericom Semiconductor and ZDNet (back in the black).

Mediocre returns came from Advanced Arrow Electronics, BMC Software, Comdisco, Deutsche Telekom, eBay, Ecsoft Group, EMS Technologies, Fibre Comms, Frontier, Gensym (but back in the black), Inacom, Inprise, KLA-Tencor, Logic Devices, Logitech, Mapics, Pegasus Systems, ScanSoft (but back in the black), SeaChange International (back in the black), Sony, SRS Labs, Starnet Comms (but back in the black) and V3 Semiconductor.

Very poor results were recorded by Allen Telecom (only just in the black), Circuit Systems (back in the black, but only just), Computone, Comshare, Epicor, ILOG SA, Information Resources, Mobius Management Systems, Radiant Technology, Salient 3 Comms (back in the black - just) and Symix.

Other financial news included profit warnings from Higham Systems Services Group Plc. and Stordata Solutions; a stock split announcement from Teradyne; and the announcement that Paul Allen`s Charter Communications has filed for one of the largest ever IPOs at $3.45 billion.

Locally

Altron (-19%)
Aquila (+20%)
Bryant (-26%)
Casey (+66.7%)
Explorer (-38.9%)
Grintek (-18.5%)
Jasco (-35.4%)
JemTech (+60%)
Powertech (-26.6%)
USKO (+37.9%)
Wentech (+21.4%)
Whetstone (-26.7%)
Y2KTec (-31.6%)

Internationally

Fujitsu (+20.4%)
Kofax (+26.9%)
Micron Technology (+20.5%)
Remedy (-24.3%)

This week sees the listing of AST-A, the combined Abraxas/AST Group, and the "MIH-free" M-Web shares. Additionally, this month and September should see several local interim or full year results which I`m sure are going to contain a number of surprises, judging by the formal and informal news circulating around the marketplace.