MS saga continues

In a very quiet week on all fronts, the on-going Microsoft saga continued to dominate the international world of IT and telecommunications last week.

Notable omissions in the top 100 include AT&T, Compaq, IBM, Intel, Lucent Technologies and SAP.

Paul Booth, columnist, ITWeb

At home, the Dimension Data UK listing news stole local headlines.

• we saw a full-year loss by Bynx (revenue in second six months only a third of that in first six months) and Contlan Holdings (revenue in second six months well down on first half-year); and
• IST has restated its results for the last year, showing a larger drop in profits.
• Dimension Data`s application to move its main listing to the UK has been approved by the finance ministry, but it will remain listed on the JSE.

[Local]

[Cautionary]

[Listing]

[Result]

Other local news included:

• Bynx`s announcement that it intends to sell-out minorities to The Learning Group and subsequently de-list from the JSE;
• the latest in the on-going Y2KTec/ex-CEO "squabble";
• the application for the liquidation of SA`s only free Internet access company, X-Stream; and
• the resignation of the local MD of SAS Institute, Dave McFee.

• the announcement by the Japanese government that it intends to fully privatise NT&T;
• France Telecom has made a $261 million bid for 40% of Mauritius Telecom;
• Vodafone AirTouch has won the struggle with BT for control of Spain`s number two cellular company Airtel Movil SA;
• Dutch Communications company, Equant, is likely to be acquired by either France Telecom or Global Crossing in a deal that could be worth $10 billion; and
• Xerox has issued its fourth profit warning in five quarters to add to the documents systems giant`s continued woes. With its current troubles, partly reflected by a low share price, Xerox is ripe for being acquired. The purchaser would probably be looking at the size of its immense user base and the opportunity that this presents, rather than at its technology. However, the culture of this massive group is still somewhat archaic, and much like that of IBM before Gerstner took over, but at a market capitalisation of less than $14 billion, it is a very cheap buy.

[International]

Other international news included:

• the appointments of Robert Harbage as CEO of UBICS and Noel Posternak as chairman of Parametric Technology;
• resignations of Paul Song, CEO of Aris and Andrew Sukawaty, president and COO of Sprint;
• the name change of Thundercloud Networks to PFN; and
• Rainmaker`s announcement of job cuts.

We saw excellent figures from Catalyst Semiconductor and Jabil Circuit.

Losses came from CE Software, Certicom, CMGI, CompuTrac, EMCESS Broadcast products, Envision Development, Fatbrain.com, IIS Intelligent Information Systems, Red Hat, Tecsys, Telme.com, UniComp and Wallace Computer Services.

Good numbers were recorded by Adobe Systems, Eltek and Solectron; and satisfactory ones by Circa Enterprises, CML Microsystems, Leitch Technology, Progress Software, Standard Microsystems (back in the black) and VTEL (back in the black).

Very poor results came from Dunn Computer.

Other financial news included profit warnings from Aris, AVT, Citrix Systems, Corel, Digital River, Lucent Technologies (unofficial), Micros Systems, NBC Internet, Perot Systems, Rainmaker, Remedy, Systemax and Xerox.

Share split announcements from ADC and Certicom; and successful IPOs from August Technologies and Rediff.com. Additionally, Swedish Telecomms operator, Telia, had a satisfactory stock market debut.

Locally

Bynx (+36.2%)
CIH (+100%)
I-Tech (-55.6%)
Labat (-25.7%)
MB Technologies (+37.5%)
Synergy (-28.6%)
USKO (-26.3%)
Y2KTec (+200%)
Y3K (-25%)

Internationally

Aris (-32.5%)
Asyst Technologies (-39.3%)
CNET Networks (-23%)
Covad Comms (-36.4%)
Digital River (-39%)
Forrester (+22%)
Perot Systems (-25.8%)
Pervasive Software (-20.5%)
Rambus (+46%)
SSA (-34.4%)
Sykes Enterprises (-21.8%)
Tower Semiconductor (+26.1%)
Vishay Intertechnology (-35.3%)
Xerox (-20.3%)

Business Week has issued its Info Tech 100, the world`s best performers listing. In the overall number one slot was Nokia, with NetCreations heading the "fastest growing" slot, Netcom heading "the most profitable" slot and BEA Systems heading the "who gave the best returns" category. Notable omissions in the top 100 include AT&T, Compaq, IBM, Intel, Lucent Technologies and SAP.

I will be away in the UK for a few days later this week and therefore my next column will appear on 3 July, but will cover two weeks.