The Microsoft earnings news and the continuing job loss announcements and profit warnings dominated the international world of IT and telecommunications last week.
[VIDEO]At home, the Cell C/Vodacom agreement and the Connection Group results stole local headlines during a very quiet week.
On the local front
* we saw satisfactory year-end numbers from Connection Group Holdings (revenue and earnings both up a little);
* a full-year loss from Streamworks (but revenue up significantly); and
* the announcement that Aries, which includes a substantial IT element, intends to de-list from the JSE on 27 July.
* Additionally, rumours are rife that Datatec may delay its US listing of its Westcon Group, because of the instability that the Nasdaq is experiencing.
Local Cautionary Notices (see attachment).
Local Result Summaries (see attachment).
Local Major Event Summary (see attachment).
Other local news included:
* the appointment of Robin Morello as the new MD of Oracle SA;
* the resignation of Mark Gilfillan, CEO of MB Worksoft;
* the emergence of a new exhibition firm, Dynamic Services Group, that has been staffed from individuals previously with International Fairs and Exhibitions;
* the publication of a new IT magazine, Windows User Magazine Southern Africa, from UK-based ITP, but operating locally from the premises of Systems Publishers;
* the announcement that Cell C has entered into a roaming agreement with Vodacom to use its facilities;
* the sell-off by Pinnacle Technology Holdings to Saambou of its 50% share in Invescor, the 50/50 joint venture set up with Saambou;
* the news that Telkom is planning to list on wall Street, once the local listing had taken place; and
* the opening of a UK operation by Indian software development consultancy, Nihilent Technologies, which is 74.9% owned by Nedcor.
On the international scene
* we saw a major reorganisation from Invensys Software Systems Division;
* the announcement that Enterasys Networks will go public on the NYSE on 6 August;
* the news of another major reshuffle at Lucent Technologies that could see the axing of 30% of its top management;
* Psion`s announcement that it has abandoned the PDA market in order to concentrate on the industrial and wireless markets; and
* the name change of ECCS to Storage Engine.
Additionally, watch out for a possible buy-out of AT&T`s broadband business by Comcast, which if accepted, would create the world`s largest broadband company. AT&T has rejected the $44.5 billion offer for now. However, this move could spur AT&T on re its break-up proposals or as a leverage for extracting an even bigger offer from Comcast. Furthermore, Baltimore Technologies and Merant seem to be up for sale (unofficially); and IBM seems to be eyeing German e-business company, Brokat.
International acquisitions, mergers, joint ventures etc (see attachment).
Other international news included:
* the appointments of David Andonian as president and COO of CMGI, Susan Atherton as CEO of Moreover Technologies and John Olsen as president and COO of Business Objects;
* the resignations of Hal Covert, president and CFO of SGI, and John Olsen, CEO of Marimba; and
* job loss announcements from Alcatel, Compaq, Conexant, Corning, Crossroads Systems, Forrester Research, Gemplus International SA, IBM, Lucent Technologies, Newport, Psion, Savvis Comms and Teledyne.
Financial results
We saw excellent figures from Infosys Technologies Satyam Computer Services and UTStarcom.
Good numbers were recorded by Acclaim Entertainment (back in the black), First Data, InFocus, infoUSA, Pace Micro and SmartForce; and satisfactory ones by CellStar (back in the black), NDC Automation (back in the black) and RSA Security.
Mediocre returns came from AMD, AVX, CSI, Electronics For Imaging, Metron Technology NV, PanAmSat and Rambus; while very poor results came from eNetpc (but back in the black), Inforte and Printronix.
Losses were reported by Actuate, AlphaNet Solutions, Ashton Technology Group, Aura Systems, Brio Technology, Calico Commerce, Centra Software, DoubleClick, Elcotel, Exabyte, Exult, Gresham Computing, HEI, Insignia Systems, International Electronics, Juniper Networks, McAfee.com, Motorola, NMS Comms, Numerical Technologies, Omtool, Pliant Systems, Powerwave Technologies, Rational Software, Redback Networks, SafeNet, Silicon Valley research, Sonus Networks, Stamps.com, STMicroelectronics, TMSSequoia, Troy Group, Visual Networks, VISX, Yahoo and ZeroPlus.com.
One wonders what is next in Microsoft`s moves to potentially lessen the severity of the impending judgements.
Paul Booth, MD, Global Research Partners
Other financial news included from AMD, Avocent, BellSouth, Brio Technology, Blue Martini Software, Compaq, Comverse Technology, Conexant, Corning, Data I/O, Emerson Electric, Gilat Satellite Networks, Ibis Technology, ILOG SA, Metrologic Instruments, Microsoft, Motorola, NCR, NetScout Systems, Pericom semiconductor, Psion, Rambus, Savvis Comms, SGI, SilverStream Software, Staffware, STMicroelectronics, Telecomm Systems, Teledyne, Telstra, Unaxis Holding SA and Vitria Technology.
There was a share split announcement from Intasys (reverse). Additionally, Polaroid is struggling to remain alive, and has managed to reach an agreement with its US banks that will allow it to restructure its debt while maintaining operations. Ideally, it is looking for a buyer.
Stock movements
Locally
Cape Empowerment Trust (+42.9%)
Elexir (+33.3%)
MB Technologies (+28%)
OAI (-26.7%)
OneLogix (+27.3%)
OSI (+30%)
PTH (+300%)
Sethold (+200%)
Synergy (+50%)
Y3K (-33.3%)
Internationally
Baltimore Technologies (+83.3%)
Comverse Technology (-46%)
ConMat Technologies (-33.3%)
Equifax (-39.1%)
Franklin Telecomms (-37.5%)
Lightning Rod Software (+114.3%)
Merant (+40.4%)
SGI (-48.2%)
Staffware (-53.6%)
Terence Chapman (-34.9%)
UnitedGlobalCom (-33.1%)
Final word
Following the recent court rulings, there are first signs of a softening in Microsoft`s attitudes and practices. With immediate effect, which really means with XP (probably with reduced functionality), due to be launched on 25 October, PC makers will:
* Have the option to remove the "Start" menu entries and icons that provide end-users with access to Internet Explorer components of the operating systems;
* Have the option to remove "Start" menus and icons that provide users with access to Explorer from previous versions of Windows; and
* Be able to put icons directly on to the Windows desktop. Originally, XP was designed to ship with a clean desktop and improved Start menu.
It`s a start. One wonders what is next in Microsoft`s moves to potentially lessen the severity of the impending judgements.
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