Microsoft saga, local results dominate

The Microsoft saga and little else dominated the international IT world last week, while locally there was a flurry of local results.

• we saw excellent year-end numbers from ITI Technology (nearly three-times previous year`s figures in both revenue and income terms);
• very good year-end (maiden) figures from Vesta Technology Holdings (better than forecast);
• good year-end (maiden) numbers from UCS (excellent revenue/income ratio, well above industry average);
• excellent interim results from Datatec (income higher than previous full year) and Idion (revenue and income greater than last full-year numbers);
• good interim figures from I-Fusion (revenue and income both well up);
• a half-year loss, as warned, by Infowave Holdings (but revenue only slightly less than last full year numbers); and
• the announcement by Datatec that it would list its Westcon division on the US Nasdaq.

[Local]

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

Local Cautionary Notices (see attachment).

Local Listing calendar (see attachment).

Other local news included:

• the opening of Merant`s local SA office;
• the merging of Softline`s Virtual Systems Technology and Triple-S into a single outsourcing solutions provider;
• the buy-out of Gemini Consulting in SA by a management consortium that includes Brait and MMR Equity Capital; and
• the proposed disposal of Sourcecom Technology by Cape Star Investments.

We saw extensive coverage of the continuing Microsoft saga with the Department of Justice, following the monopolistic ruling; and the start of the expected flood of lawsuits from "affected" organisations.

[International]

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

Other international news included:

• the appointments of Edward Coleman as the new CEO at CompuCom, and Bruce Albertson as the new CEO at Iomega (as from January 2000);
• the formation of Marconi Comms organisation under a new management team based in the US; and
• the announcement of lay-offs at Avid Technology and Hutchinson Technology.

Additionally, there seems to be numerous discussions (more than usual) taking place within the networking/telecommunications community.

There seems to be numerous discussions (more than usual) taking place within the networking/telecommunications community.

For instance, Singapore Telecom is talking with Japan`s international phone carrier, KDD (a small cross-share holding has already been agreed); France Telecom and Vodacom Airtouch (rumours suggest a hostile bid from the latter in excess of $100 billion is imminent) are eyeing Mannesmann, following its take-over of Orange; British Telecom, together with News Corp, are lining up a bid for Vivendi SA, the French media, telecom and utility giant; and Alcatel SA, and others may be considering a bid for Newbridge Networks, which recently issued its sixth profit warning in the space of 10 quarters.

We saw excellent figures from American Nortel Comms, Cisco, Colt Telecom Group, Dataram, Integrity Holdings, KDD, TTI Telecom International and ZiaSun Technologies.

Losses came from Advanced Comms, Aegis Comms, American Superconductor, Ampex, Applied Graphics, Architel Systems, Borak ITC, Clearnet, Condor Technology Solutions, Conductus, Convergent Comms, CoreComm, Datapoint, Davel Comms, Digital Island, Elcom International, ESAT Telecom Group, First World Comms, FlashNet Comms, Frontline Comms, Futuremedia, GCI, Howtek, IMSI, Infodata Systems, Intelect, Interface Systems, InterNAP, IVillage, KMC Telecomm, Log On America, Logix Comms Enterprises, Nestor, NetObjects, NTL, OfficeMax, Omnipoint, OneLink Comms, OpTel, Pathnet, Peritus Software Services, Pointe Comms, RMI.NET, Salem Comms, Sentry Technology, Sterling Software, Telegent, Top Image Systems, TouchStone Software, Track Data, Triton PCS Holdings, US Wireless, VDC Comms, Xiox and ZixIt.

Good numbers were recorded by Avery Comms (back in the black-just), British Telecom, Cadcentre Group, CMSI (back in the black), Complete Business Solutions, GenTek, Group 1 Software, Integral Systems, Intelliquest Information Group, Interactive Technologies.com, MTS-MER Telemanagement Solutions (back in the black), Nam Tai Electronics, Pomeroy Computer Resources, Sharp and Telefonica.

Satisfactory results were achieved by Alcatel (back in the black), Analytical Surveys, Cysive, Dell, Digi International (back in the black), ForSoft, Lenfest Comms, Mannesmann AG and WM-data AB.

Mediocre returns came from Cable & Wireless, Cimatron, Comcast, Data Research Associates, IMRglobal, Kewill Systems, MMT Computing, Primark, SVI Holdings, TDK, Tier Technologies, Tyler Technologies and ViaSat.

Very poor results were reported by Applied Digital Solutions and Vitech America.

Other financial news included profit warnings from Cable & Wireless, Complete Business Solutions and Dell. There were also share split announcements from Actuate, Brocade, Dataram, Telefonos de Mexico, UnitedGlobalCom, VeriSign and Viant; and Cobalt Networks and Finisar having excellent debuts, with their shares rocketing over four times on the opening day.

Locally

CSH (+29.2%)
Elexir (-20%)
I-Tech (+47.1%)
Infowave (-26.3%)
M-Web (+44.7%)
Micrologix (+30.8%)
PentaCom (-23.1%)
Prada Technology (+41.7%)
Prism (+28.6%)
PTH (+25%)
Stantronics (+36.7%)
Synergy (-42.9%)
Y2Ktec (+112.5%)

Internationally

BackWeb (+41.2%)
CE Software Holdings (+32.4%)
Conexant Systems (+32.3%)
Intelidata (+124.4%)
Internet.com (+36.6%)
Iona Technologies (+49%)
Newbridge Networks (+31%)
Quality Software (+31.1%)
Segue Software (+40.3%)
Staffware (+31.1%)
Tadpole Technology (+35%)
VerticalNet (+34.5%)

The Sunday Times has published its "Top 100 Companies" issue, with Comparex being the top placed IT company in 21^st position (up from 85^th last year). Other top 50 companies were Altron at 24 (31), Datatec at 26 (166) and Dimension Data at 40 (84).