Nortel Networks to liquidate

The final fate of Nortel Networks was a major story internationally in the ICT world during the last two weeks. At home, Telkom's annual results and some key executive changes dominated the local media space.

* Very good year-end numbers from Naspers with, revenue up over 30% and profit up over 50%. Its Internet and technology segments, now representing 16% of the business, were both up over 50%.
* Mixed year-end figures from Telkom SA, with revenue up 6.9% pro rata, but profit down 48%. Its Nigerian subsidiary, Multi-Links, lost R1.76 billion.
* The Ifca Technologies trading update still forecasts a loss, but a smaller one than last year.
* A negative trading update from Faritec.
* Exordia, a PWC division, acquired the Microsoft Dynamics division of Bytes Technology Group.
* Itec North bought 50% of Itec North East.
* India-based SoftPro Systems purchased Cura Software Solution, a provider of governance, risk management and compliance software solutions, for $19 million.
* The Notsi Group made a 25.1% investment in UMT Project and Portfolio Management Services SA, a supplier of enterprise project management software. Notsi also has a stake in BUI, Notsi Technologies and nVisionIT, all Microsoft systems specialists.
* MTN's international carrier business merged with Belgacom International Carrier Services, resulting in MTN owning a 20% stake, Belgacom 57.6% and Swisscom 22.4%.
* MiDigital, Microsoft's Xbox console distributor, went into liquidation.
* Dark Fibre Africa unveiled its national network that has mainly been laid in the metropolitan areas of Cape Town, Durban, Johannesburg and Pretoria.

* Telkom SA is to de-list from the New York Stock Exchange.
* The appointments of Oliver Fortuin as GM of IBM's business in sub-Saharan Africa; Glenn Fullerton as CEO of MB Technologies; Moses Mthimunye as acting CEO of SITA; and Karel Pienaar as MD of MTN South Africa.
* The resignations of Mark Harris, GM of IBM's business in sub-Saharan Africa (moves elsewhere within IBM); Tim Lowry, MD of MTN South Africa; and Bruce McGregor, CEO of MB Technologies.

* Tanzania's seventh telecommunications operator, Dovetel, was launched. It will operate under the name Sasatel.
* Tunisia's third licence has been won by a consortium led by France Telecom (Orange).
* Mickael Ghossein was appointed CEO of Telkom Kenya.
* Dominic Saint-Jean, CEO of Telkom Kenya, retired.

Microsoft is looking for a buyer for its digital advertising agency, Razorfish, which it acquired in 2007 for between $600 million and $700 million.

Paul Booth, MD, Global Research Partners

* Nortel Networks is to liquidate. This follows its acceptance of the bid by Nokia-Siemens Networks. The company acquired the most lucrative part of Nortel Networks' carrier-networks division and a wireless research unit, for $650 million.
* NTT Communications, a subsidiary of NTT, bought Germany-based Integralis, a provider of IT security services, for EUR75 million.
* Apple invested in UK-based Imagination Technologies, a designer of microchips used in laptops and smartphones. This move has raised Apple's stake to 9.5%.
* Binatone will launch its MiMo (Mini Mobile) 'throwaway' phone, dubbed 'Bin-a-phone', in several markets, including the UK, which is scheduled for 2010.
* Microsoft is looking for a buyer for its digital advertising agency, Razorfish, which it acquired in 2007 for between $600 million and $700 million.
* Satyam Computer Services has changed its name to Mahindra Satyam, and is to merge with Tech Mahindra under the leadership of the latter's new CEO.
* Yahoo is winding down Maven Networks, an online video service company that it bought last year for $160 million.
* Good full-year numbers from MicroFocus.
* Satisfactory quarterly results from Red Hat.
* Mediocre quarterly results from Accenture.
* Mixed quarterly figures from Tibco (revenue down, but profit well up).
* Quarterly losses from Jabil Circuit, Micron Technology and Palm.
* The appointments of CP Gurnani as CEO of Mahindra Satyam; Walter Havenstein (ex-BAE Systems) as CEO of SAIC; Ken Joyce as CEO of Amkor Technology; Sanjay Kalra as CEO of Tech Mahindra; Roshni Nadar as CEO of HCL (the holding company of HCL Technologies and HCL Infosystems); Hans Vestberg as CEO of LM Ericsson; and Jeff Weiner as CEO of LinkedIn, a social networking site.
* The resignations of Ken Dahlberg, CEO of SAIC; Reid Hoffman, CEO of LinkedIn (remains executive chairman); James Kim, CEO of Amkor Technology; Nandan Nilekani, co-chairman of Infosys Technologies; and Carl-Henric Svanberg, CEO of LM Ericsson (moves to BP as chairman).
* A successful IPO on Nasdaq from LogMeIn, a seller of on-demand remote Internet services.
* A planned IPO by Grameenphone (Bangladesh), currently owned by Telenor (Norway) and Grameen Telecom.

* International:
* The possible acquisition of T-Mobile's UK operation by Vodafone.

* The possible investment by NTT Communications in Tata Communications.

* Africa:
* The potential sale of Zain's African operations.

* South Africa:
* The new SA country manager for HP. A shortlist of three candidates has been drawn up and includes both internal and external applicants.
* The outcome of the R4.3 billion bid by Remgro for Venfin (excludes the latter's Dimension Data stake). Venfin has a significant ICT portfolio with stakes in Britehouse (a SAP consultancy and a Dimension Data subsidiary); CIV FNS, a company that can build, own, maintain and monitor infrastructure suitable to carry services such as fibre-optic networks; Dark Fibre Africa, a wholesale fibre-optic backbone network provider; Dimension Data; Fraxion, a developer and seller of advanced spend management software; Fring, an Israeli mobile communications company that develops and markets a mobile Internet service, which enables its users to talk, chat and interact with other users; Fundamo, a supplier of mobile banking and payment software solutions; i to i technologies, a company that offers integrated solutions to safeguard assets, people and information; One Digital Media, a digital media network provider; Psitek, a provider of products in the fixed-line and mobile telecommunication arenas; Seacom, the east coast of Africa undersea cable; and Tracker, a provider of vehicle tracking systems.

* The worldwide security software market totalled $13.5 billion in 2008, up 18.6% from 2007, reports Gartner.
* Worldwide PC shipments are likely to decline 6% in 2009 to 274 million units, according to Gartner.
* EMEA server revenue in Q209 will decline 39.3% over Q208 to $2.9 billion, according to IDC.
* Worldwide server spending is expected to decline 29.6% in Q209 to $10.6 billion, according to IDC.

* JSE All share index: Down 0.7%
* Nasdaq: Down 0.6%
* Top SA share movements: Amecor (-18.2%), Beget Holdings (+50%), Dialogue (-20%), Dynamic Cables (-31.8%), Faritec (-20%), ISA (+19.4%), Labat Africa (25%), Poynting (-36.4%), Spescom (+17.1%) and Telkom SA (+15.7%)

As it is the end of the half-year, I compared various stock exchange closing prices with those extant this time last year. The JSE is still approximately 27% down, although the Nasdaq is only 22% down. Other exchanges included the FTSE 100 at about 25% down; the Dow Jones at about 30% down; the Nikkei 225 (Japan) at about 30% down; and the Hang Seng (Hong Kong) at only 15% down.