Novell represents 'cheap buy` for suitors

The German auction for the third generation UMTS cellular licence, which raised a world record amount of over 50 billion euros, and British Telecom`s multi-billion acquisition of 40% of Viag, thus giving it overall control with a 90% ownership, dominated the international world of IT and telecommunications last week.

At home, the new wrangles between Telkom and the cellphone operators and Cable & Wireless, and the flood of local results stole local headlines.

• excellent full-year figures from Aplitec (all ratios well up), Aqua Online (maiden results and significantly ahead of forecast) and Rectron (all numbers well up);
• very good full-year results from Dimension Data`s Asian subsidiary, Datacraft Asia, and MGX (income well up ignoring last year`s exceptional gain);
• disappointing full-year numbers from Ixchange (although revenue and income well up, operating profit was extremely low);
• very poor full-year numbers from Seartec (income back in the black, just, and revenue static);
• satisfactory interim figures from the consolidated Advtech Group;
• a profit warning from Spescom; and
• a litigation and profit warning from Explorer.

• The abridged pre-listing statement was published by Sempres International Technology Holdings (includes Greenwich Mean Time), which listed very successfully in the telecommunications sector of the JSE on Friday; and
• the JSE advised that the audit opinion on Micrologix`s annual financial statements for the year ended 31 December 1999 has been disclaimed.

[Local]

Other local news included:

• the opening of a local office by Fujitsu Siemens and by US-based Sitara Networks;
• announcement of an e-venture between Ariel Technologies and Johnnic; and
• the "closing of the doors" at Insys Business Solutions.

• we saw the announcement that Informix is moving its headquarters to Massachusetts from California; and
• strong rumours that IBM is interested in acquiring Novell, and that British Telecom and AT&T are getting together to discuss a possible "merger".
• Digital Lightwave has changed its name to DMC Stratex Networks, and Preferred Networks to PNI Technologies.

Novell`s current market capitalisation is only a little over $3.5 billion and represents a very cheap buy for potential suitors.

Paul Booth, columnist, ITWeb

Novell shares hit a 12-month low of just under $8 in May this year, and are still languishing below $12 following the announcement of a disastrous Q3, that saw the company`s net income drop by over 80% from the equivalent quarter last year. Its shares have dropped 73% this year from a high of $44.5 in February this year. Its current market capitalisation is only a little over $3.5 billion and represents a very cheap buy for potential suitors, which includes IBM. Another option available for Novell is to consider a split along similar lines to the one announced by Cabletron last year.

[International]

Other international news included:

• the appointments of Alice Hsin as interim president and CEO of Linx Comms, and Robert Notebaert as CEO of Tellabs;
• the resignations of Michael Cowpland, founder, chairman, president and CEO of Corel, and David Dinin, president and CEO of Robocom; and
• the announcement of job losses by Agilent Technologies and Informix.

We saw excellent figures from ADC Telecomms, Analog Devices, BEA Systems, Brocade Systems, Catalyst Semiconductor, Ciena (back in the black), Ditech Comms, Lycos (back in the black), Network Appliance, Portal Software (back in the black), Qualstar, ScanSource and Simtek.

Losses came from 9278 Comms, Absolute Software, Adelphia Comms, Advanced Systems International, Agile Software, Alysis Technologies, AmeriQuest Technologies, Anacomp, Ansoft, Applied Graphics Technologies, ASA International, Astea International, AXXENT, Aztec Technology Partners, BrightStar IT Group, Brokat Infosystems AG, BTI Telecom, CacheFlow, CDSI Holdings, Comms World International, Computone, Concurrent Computer, Cope AG, Crosswave Comms, CTI Group, CVF Technologies, Cynet, Davel Comms, Dicom Imaging Systems, Elcotel, Entravision Comms, eSAT, eSynch, EXE Technologies, F-Secure, FiberCore, FieldWorks, FirstCom, Frontline Comms, Fusion Networks, General Automation, GenesisIntermedia.com, Gilat Comms, GSE Systems, ImageWare, Intelispan. Intelli-Check, Intentia AB, Internet Africa, IXOS Software AG, Lason, Logisoft, LSI Comms, MCK Comms, Microcell, Muse Technologies, NCD, Nestor, Niku, Partner Comms, Perceptronics, Quentra Networks, RadView Software, RMI.NET, SEEC, Solution 6, Star Telecom, Tangram Enterprise Solutions, TeleCommunication Systems, Teltronics, Trident Media Group, TRM, Tyler Technologies, United Pan-Europe Comms, Ursus Telecom, US Wireless, Visual Data, Vizacom, WorldPort Comms, Zapata and Zenith Electronics.

Good numbers were recorded by ADP, Advanced Digital Information, Agilent Technologies, Analytical Software (back in the black), Autodesk, C-COR.net, Chordiant Comms, GFI Informatique SA, HP, InterTAN, Liberty Media Group, NCS, SBS Technologies, Serena Software, Software Consulting Group and Telenor AB.

Satisfactory results were reported from Atos, Barrister Global Services Network (back in the black), CACI, CNT, MB Software AG (back in the black), OSI, Primark, Synopsys, Telebyte and Telia AB.

Mediocre returns came from Acorn Holding (back in the black), Computacenter, Getronics, Gilat Satellite Networks, NeoMagic, Novell, Photronics, Silicon Valley Research (back in the black) and VDI Multimedia.

Very poor results came from Open Text.

Other financial news included a profit warning from TelCom Semiconductor; share split announcements from Ciena, Corning, HP, Pericom and Sun Microsystems.

There were very successful IPOs from Integrated Telecom Express (components), Peco II (networking infrastructure) and WJ Comms (broadband comms); but mediocre IPOs from Avistar (video comms networking), Lexar Media (digital photography), O2 Wireless (services), PeoplePC (computer services), Synquest (e-business) and Viasource (broadband comms).

Locally

Acuity (-33.3%)
ASAS (+100%)
Brainware (+100%)
Casey (+40%)
CIH (-50%)
ERP.com (-33.3%)
Explorer (-61.5%)
Ixchange (-35.2%)
JemTech (+60%)
Rectron (+30.3%)
UAM (+48.1%)

Internationally

ActionPoint (37.3%)
Agilent (+38.8%)
Asyst Technologies (+34.5%)
Atmel (+37.1%)
BMC Software (+35.1%)
CacheFlow (+33.3%)
Catalyst Semiconductor (+56.4%)
Conexant (+38.2%)
ConMat Technologies (+84.9%)
LanOptics (+58.5%)
Lam Research (+33.6%)
Western Digital (+52.4%)

This week will see more local results from several companies, including AST, CCH, Comparex and Siltek.