MS eyes Google

Microsoft`s potential acquisition of Google and the additional activities of the European Commission re Microsoft dominated the international world of IT and telecommunications last week.

At home, the increased offer for the buy-out of Aplitec and the sanctioning of Pinnacle`s call-back services took most of the local ICT headline space.

* we saw a positive results warning from Telkom SA;

* the appointment of Stafford Masie as country manager for Novell SA;

* Cape Town-based PIC Solutions opened Johannesburg and Durban offices;

* Choice Technologies was appointed as the exclusive technology partner for SA`s bid for the hosting of the 2010 FIFA World Cup;

* the launches of EmpowerLogic, an empowerment measuring and strategic development company, and Waymark Infotech, a black economic empowerment solutions and services company; and

* ICASA granted a licence to Pinnacle Technology for its 'call-back` services.

New local distributorships included that of SSA Global for sub-Saharan Africa by Labat Africa.

* we saw the long-awaited spin-off from Palm of PalmSource, the provider of Palm OS and headed by Dave Nagel;

* the name change of Palm, following its merger with Handspring, to palmOne;

* the calling off of merger talks between BellSouth and AT&T; and

* Microsoft settled several class-action lawsuits for about $200 million.

Additionally, look out for the outcome of a new probe by the European Commission into Microsoft`s licensing policy towards hardware manufacturers and Microsoft`s approach to Google re an acquisition; and the results of an exploration initiated by Commerce One re a possible sell-off.

Other international news included:

* the appointments of Joseph Cece as president and CEO of Global Knowledge, Anna Chagnon as CEO of Bitstream, William Crowell as chairman of ActivCard, Jonathan Kemp as CEO of Eidos and Jerry Meerkatz as CEO of Infowave Systems; and

* job loss announcements from Cirrus Logic, EDS, Sony and Wavecom.

The latest quarter shows a loss over three times the size of Commerce One`s revenue and it has commissioned consultants to investigate strategic alternatives, including a possible buyer.

Paul Booth, MD, Global Research Partners

Excellent* figures were posted by BakBone Software (back in the black), chinadotcom (back in the black), Euronet Worldwide (back in the black), Faro Technologies, Netease.com (back in the black), NetScreen Technologies (back in the black), Sina (back in the black) and Sonic Solutions.

Very good* numbers came from Advantest (back in the black), Altiris, Anteon, ClickSoftware (back in the black), Cray, DTS, IEC Electronics, LaBarge, Macrovision, Magma Design Automation, ManTech International, MapInfo, Micromuse (back in the black), Netegrity (back in the black), Nice Systems, Qualstar (back in the black), Satyam Computer Services, SigmaTel (back in the black), Taiwan Semiconductor and Wireless Facilities.

Good figures* were recorded by Adaptec (back in the black), Agere Systems (back in the black), AML Comms (back in the black), Andrew (back in the black), Anixter International, APC, ASE Test, AU Optronics, AXS-One, Canon, Captiva, CGI, Comcast (back in the black), Conexant (back in the black), Diodes, F5 Networks (back in the black), Fast Search & Transfer, InfoSpace, Insight Comms, Intelligroup, Interlink Electronics, International Rectifier, JVC, Kronos, Lionbridge Technologies (back in the black), Merge Technologies, Micros, Neoware, New Edge Networks (back in the black), O2Micro International, Opnet, Optelecom, Par Technology (back in the black), Partner Comms, Perficient (back in the black), Primus Knowledge Solutions (back in the black), Ptek Holdings, Radyne ComStream (back in the black), Sanyo, SCT, Seiko Epson, Sharp, Talk America, TDS (back in the black), Trimble, Tyler Technologies, United Microelectronics, US Cellular, Vodavi Technology, Vyyo, Wanadoo and Winland Electronics.

Satisfactory* figures were posted by 8x8 (back in the black), AdvancePCS, Amkor (back in the black), AMX, Axsys Technologies (back in the black), Bell Canada, Cadmus Comms (back in the black), Cesky Telecom, Chunghwa Telecomms, Ciber, CommScope (back in the black), Data I/o (back in the black), Datascope, DiamondCluster International (back in the black), Equant, France Telecom, Fuji Photo Film, Glenayre Technologies (back in the black), Group 1 Software, GTSI, Ikonics, Ingram Micro (back in the black), Insight Enterprises, Intergraph, Journal Comms, Keynote Systems, Marimba (back in the black), Matsushita Electric, Maxim Integrated products, MEMC Electronic Materials (but back in the black), Modem Media, MRO Software (back in the black), NIC, Omnicom Group, PC Mall, Rudolph Technologies (back in the black), SK Telecom, SPSS (back in the black), SPX, Sybase, Sykes Enterprises (back in the black), TDK, TeliaSonera, Telus (but back in the black), Transaction Systems Architects and Tvia (back in the black).

Mediocre* returns came from ADS Financial Services, Allstream (back in the black), AMIS Holdings, Banta, Bell Microproducts, CompuCom Systems, Digitas (but back in the black), DoCoMo, ESS Technology, Garmin, Gartner, John H Harland, Hitachi, IKON Office Systems, Mapics, MDC, Merisel, Mitsubishi Electric, OSI Systems, P-Com (but back in the black), Pegasus Solutions, Reuters, Rogue Wave Software (but back in the black), Safeguard Scientifics, SI International, Siliconix, Tangram, TSI Telecomms Services, Universal Electronics, Valassis, Varian Semiconductor, Verizon Comms, Vishay Intertechnology and Zoom Technologies.

Very poor results* came from APAC Customer Services, Aspen Technology, Embratel Participacoes SA (but back in the black), Key Tronic, Per-Se, Scan-Optics, STATS (but back in the black) and ViryaNet (but back in the black).

Losses* were posted by 724 Solutions, ActivCard, Actuate, Agilysys, Akamai Technologies, Alaska Comms Systems, Alcatel, American Access Technologies, Amistar, API Electronics, Applied Imaging, Artisoft, Avnet, Axcelis, Axeda Systems, BCI, BEI Technologies, BMC Software, Bookham Technology, Bottomline Technologies, Brightpoint, Brillian, Brooks Automation, Call-Net, Catapult Comms, Centra Software, Ceragon Networks, CFC International, Computer Horizons, ChipPAC, Commerce One, Copper Mountain Networks, Corio, Cox Comms, Crown Castle International, CSG Systems International, CyberOptics, Daleen, Datakey, DigitalNet, Document Sciences, Duraswitch, EDS, Endwave, Entrust, Equinix, Ericsson, First Virtual Comms, Firstwave, FreeMarkets, Fujitsu, Gemplus, Genesis Microchip, Genus, Giga-tronics, GSI Commerce, HickoryTech, I-many, ICC, Identix, iGate, InFocus, InfoVista, Input/Output, Insight Comms, Insightful, Insignia Solutions, InterNAP, Intershop Comms, ,interWAVE Comms International, ISSI, IXYS, Jacada, Korea Telecomms, LanOptics, Larscom, LogicVision, LookSmart, Manchester Technologies, Manhattan Associates, Maxwell Technologies, MDSI MetaSolv, Microtune, Mobile Data Solutions, MicroStrategy, MSL, NaviSite, Netgear, NetManage, New Focus, Newport, Novadigm, Novatel Wireless, NUR Macroprinters, Nyfix, ON Semiconductor, ON Technology, On2 Technologies, Onyx Software, Openwave, Optimal Robotics, Orckit Comms, Pac-West Telecomms, PCTEL Wireless, Pemstar, Photon Dynamics, Pinnacle Systems, Power-One, Radiant Systems, RealNetworks, Ross Systems, S1, Samsung Electro-Mechanics, Savvis Comms, SCM Microsystems, ServiceWare Technologies, Sipex, Sirius Satellite, Sitel, Skyworks Solutions, Spherion, SR Telecom, Stamps.com, Superconductor Technologies, Symmetricom, Tecnomatix Technologies, Telular, TMNG, Time Warner Telecomms, Toshiba, Trikon Technologies, Tripath Technology, Triton PCS, Tut Systems, Ultimate Software, US Dataworks, US LEC, Veeco Instruments, ViaLink, Virage logic, Vitria, VocalTec, Wavecom SA, WaveRider Comms, Ziff Davis, Zix and Zygo.

Other financial news included analyst upgrades for Activision, Akamai Technologies, Axcelis Technologies, BEA Systems and CheckFree; analyst downgrades for Brooks Automation, Extreme Networks, Intergraph, PalmOne and Wavecom; a share offering from Western Wireless; share buy-back announcements from Check Point Software and Intergraph; positive results/profit warnings from California Amplifier, Canon, Ditech Comms, Garmin and Onyx Software; negative results/profit warnings (often veiled) from Alterian, TeliaSonera and Toshiba ; and a share split announcements from Benchmark Electronics.

Locally

Aplitec (+16.1%)
Datatec (+13.8%)
Dimension Data (+12%)
Global Technology (+50%)
Labat Africa (+28.6%)
Maxtec (-33.3%)
MTN (+14.9%)
Pinnacle (+72.2%)
Spescom (+14.1%)
Vesta (+42.9%)

Internationally

Akamai Technologies (+37.2%)
Arel Comms & Software (+43.3%)
Aspen Technology (+33.3%)
Eagle Broadband (+40.7%)
eGain (+50.5%)
Genus (+32.3%)
Intershop Comms AG (+54.3%)
Mitek (+41.8%)
Security First Technologies (+34.8%)
Sykes Enterprises (+30.3%)
Winland Electronics (+31.3%)

In terms of indices, Nasdaq was up 3.6% and the JSE up 2.8% for the week.

Is Commerce One on the skids? The company has been producing quarterly losses for some considerable time and sold off its e-marketplace business during the last 12 months, but it seems to no avail. The latest quarter shows a loss over three times the size of the company`s revenue and it has commissioned consultants to investigate strategic alternatives, including a possible buyer. If there isn`t a willing buyer, the end could be just around the corner.

* NB

Guidelines for the categorisation of results are as follows and are always in comparison with the equivalent period for the previous year; pro forma numbers are ignored (the terminology may vary slightly from country to country).

* Excellent: Both revenue and net income growth is in excess of 50%.

* Very good: Both revenue and net income growth is in excess of 25%

* Good: Both revenue and net income growth is in excess of 10%.

* Satisfactory: Revenue is within 10% of previous year and net income is up.

* Mediocre: Either revenue and/or net income is down.

* Very poor: Net income is less than 1% of revenue.