Monopolistic Microsoft

The finding by US District Judge Thomas Jackson that Microsoft abused its monopolistic powers in the PC operating systems market dominated the international IT world last week.

It`s still questionable as to whether Microsoft will be able to settle any or all of the issues out of court.

The above finding still hasn`t addressed the issue as to whether Microsoft has broken anti-trust laws, and it looks as if we will have to wait some time for that ruling. However, until then, it`s still questionable as to whether Microsoft will be able to settle any or all of the issues out of court and whether a break-up of this enormous entity is likely to follow.

At home the hot topic was Telkom`s interim results and full year forecast, together with discussions concerned with deregulation (or the lack of it!) and its poor service.

.         we saw disappointing half-year figures from Telkom, which is also predicting significantly reduced profits for the full-year;

.         satisfactory year-end maiden numbers from Stella Vista (revenue just above forecast, but income over 30% above forecast); and

.         Pinnacle Technology Holdings is to transfer to the IT sector of the JSE, from the venture capital sector, as from 15 November.

[Local]

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

Local Cautionary Notices (see attachment).

Local Listing calendar (see attachment).

Other local news included:

.         restructuring at USKO following the investment in it by Altron; and

.         the statement by Hicor that it is not only moving away from its retail interest to focus on IT but that it intends to strengthen its European IT interests and open a US office by January 2000.

.         Additionally, Mark Bowman has been appointed the new MD of SPL, and will also head up a new software business unit within Dimension Data.

.         the announcement from NEC that it plans to shut down its Packard Bell unit`s US manufacturing plant and cut its workforce by 80%. This looks like the end of its involvement in the US retail computer market, although it is intended that it will continue in Europe.

.         Additionally, the recently merged Telia/Telenor telecomm company announced that it will offer about 20% of its shares in its forthcoming IPO; and

.         Terra Networks, whose major shareholder is Spain`s Telefonica, will become Europe`s largest quoted Internet stock when it is floated next month.

[International]

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

Other international news included:

.         the appointment of Joe Forehand as CEO and managing partner of Anderson Consulting;

.         the resignations of both the chairman and CEO of MDIS, the chairman and CEO, Trevor English, of The Street.com, and the president and COO, Alan Lutz, of Newbridge Networks; and

.         the announcements from Lucent Technologies that it will lay-off about 1% of its workforce as the company moves away from installing wiring in buildings, and from Novell, which expects to shed 1% of its workforce.

We saw excellent figures from Jupiter Comms and Serena Software.

Losses came from Allin, Anicom, Arch Comms Group, Ariel, Birch Telecom, Bitstream, Cadmus Comms, CellNet Data Systems, China.com, DA Consulting Group, Digex, Digital Island, E-Sync Networks, Elbit Vision Systems, E-Stamp, Euronet Services, Faro Technologies, Flycast Comms, Global TeleSystems, Golden Telecom, Hong Kong Telecomms, Hutchinson Technology, Indigo NV, Information Analysis, Innovex, InteliData, Intellicorp, M-Wave, MDIS Group, MEMC Electronic Materials, Navidec, Netcall, Notify Technology, Primus Telecomms, Radware, Rare Medium Group, Stac Software, Triant Technologies, Tripos, Viador, Viatel and Williams Comms.

Good numbers were recorded by Alpnet (back in the black), ASM International (back in the black), CFW Comms, IDS (back in the black), Micronetics Wireless, Perceptron, Perot Systems, Qualcomm, Radstone Technology (back in the black), Siemens, Siliconix, SPSS, TCG, The Titan Corporation, Ultimate Electronics, Unigraphics, US Lec, Varian Semiconductor (back in the black) and Vishay Intertechnology.

Satisfactory results were reported by ETC, I/NET, Infinium, Information Resources (back in the black), Dynamic Details, PSDI, Telecomm Industries, and Telxon (back in the black).

Mediocre returns came from Allstar Systems, Atec Group, Comdisco, Elantec Semiconductor, Exigent, GTSI, Merrimac, Meta Group, Mitel and Roseville Comms.

Very poor results came from Digital Transmission Systems (back in the black-just), Eicon Technology, PCD and Semitool.

Other financial news included profit warnings from Brooks Automation, Japan Telecom and Newbridge Networks; share split announcements from PSDI, Qualcomm, Scient, Track Data and Vignette. There was also the revelation that CMGI`s newly acquired Alta Vista Web portal lost $283.9 million for the year ended 31 July.

Locally

Bryant (-23.1%)

Bynx (+28.6%)

CIH (-25%)

Conlog (-28%)

Infiniti (-22.2%)

Infowave (+26.7%)

Prada Technologies (-20%)

PTH (+66.7%)

Sethold (-21.2%)

Stantronics (+30.4%)

Top Tech (+22.7%)

Internationally

Ancor Comms (+54.4%)

ASM International NV (+83%)

BackWeb Technologies (+29%)

Continuous Software (+42.5%)

Global Imaging Systems (+26.7%)

HNC Software (+25.2%)

JDA Software (+27.8%)

Legato (+27.7%)

New Era of Networks (+32.6%)

Onyx Software (33%)

Project Software & Development (+30.9%)

PSDI (+25.7%)

PSINet (+35.5%)

Qualcomm (+32.2%)

Sanchez Computer Associates (+36.3%)

Telemetrix (+28.2%)

VeriSign (+30.8%)

In a recent Butler Group survey, it was predicted that by the end of 2001, nearly all companies in the UK will be implementing business-critical e-commerce applications and that the question that is now relevant is "when and how" should one embrace e-commerce and no longer "if".

Additionally, Forbes has just published its 20 star performers among its 300 best small companies which could well become the giants of tomorrow. This list includes Arm Holdings (UK microchip designer), Brokat Infosystems (German financial software supplier), Esat Telecom (Irish telecom provider), Gilat Satellite Networks (Israeli telecommunications company), Infosys Technologies (Indian software supplier), Internet Initiative Japan (Japanese Internet services provider), Solution 6 (Australian business software supplier) and Venture Manufacturing (Singaporean contract manufacturer). These names are obviously worth watching in the coming months.