Poor financial results abound

The flood of quarterly results that included some very poor figures from companies such as Compaq, IBM, Nokia and Sun Microsystems, and the preliminary vote count numbers re the HP/Compaq merger dominated the international world of IT and telecommunications last week.

The submissions for the black empowerment 19% equity stake in the second national telecoms operator stole much of the local IT/telecoms headline space.

Paul Booth, MD, Global Research Partners

At home, the submissions for the black empowerment 19% equity stake in the second national telecoms operator and DataMirror`s new bid for Idion stole much of the local IT/telecoms headline space.

• we saw good year-end numbers from Infowave (profit significantly up);
• mixed interims from Set Point Technology Holdings (revenue well down but well back in the black); and
• Treacle Venture Partners increased its stake in ERP.com to 15.7%.

[Local]

Other local news included:

• the submissions for the black empowerment equity stake in the second national operator (SNO) were received with 10 companies submitting proposals, although three were disqualified for not including a R75 000 deposit. The "acceptable" seven proposals for this 19% stake were the Aruna Telecoms consortium, Buatel, Gondwana Telecomms, Nexus Connexion, OneTel, Reliance Networks and Umsingizane Ozi Thingo.

• DataMirror`s revised offer of 120c per share for Idion; and
• the news that "Future Business" magazine has gone bi-monthly.

• we saw the re-branding of Sun Microsystems` software products under the Sun Open Net Environment;
• the break-up of NTL into two companies as it restructures its debts, although it may still put some of its subsidiaries into Chapter 11; and
• the disposal of most of Polaroid`s assets to the private equity arm of Bank One.

Additionally, look out for the result of the SEC enquiry into HP`s communications with Deutsche Bank and Northern Trust re voting in the proposed HP/Compaq merger, although the outcome of the investigation may not be significant if the preliminary vote tally, which gave a "Yes" vote a good lead of about 45 million shares, is correct.

Also look out for the fate of United Pan-Europe Comms, which may go "belly-up"; the possible Chapter 11 filing by Metromedia Fiber Network following its default on an interest payment to Verizon Comms re its $975 million debt; and the workflow target of Hummingbird Comms which is on the acquisition prowl.

[International]

Other international news included:

• the appointments of John Becher as interim president and CEO of Accrue Software, Ron Harris as chairman of Pervasive Software, James Houghton as CEO of Corning, Rick Malette as CEO of Roundarch, James Murdakes as interim president and CEO of Image Sensing Systems, Hilary Schneider as president and CEO of Knight Ridder Digital, Sanjiv Sidhu as CEO of i2 Technologies, David Sikora as president and CEO of Pervasive Software, and Wendell Weeks as president and COO of Corning;
• the resignations of Greg Brady, CEO of i2 Technologies, and Thomas Colatosti, president and CEO of Viisage Technology;
• the retirements of John Loose, president and CEO of Corning, and Tom Keffer, founder and chairman of Rogue Wave Software; and
• job loss announcements from Commerce One, Compuware, NTELOS, NTT, Orchestream, SignalSoft and Tellabs.

We saw excellent figures from eBay, Nassda, RF Micro Devices (back in the black), UTStarcom and WebEx Comms (back in the black).

Good numbers were recorded by Advent Software, Alliance Data (back in the black), ARM Holdings, Bisys Group, ChoicePoint, Crystal Decisions, edocs, Incon (back in the black), International Datacasting, Monolithic System Technology, Nexland (back in the black), Polycom, Retek (back in the black), Samsung, SS&C, Stratos Global, SunGard, Trend Micro, US Cellular, USOL Holdings (back in the black), Virage Logic (back in the black) and WorldTeq.

Satisfactory figures were posted by 3D Systems, ADP, Adtran, Avocent (back in the black), Bell Microproducts, BellSouth, Broadwing (back in the black), Business Objects, Cadence Design Systems, CDW Computer Centers, Cognizant Technology, Ennis Business Forms, FileNET (back in the black), Financial Models (back in the black), Giga Information Group (back in the black), Harris, Hynix (back in the black), Intel, ISS (back in the black), Jenoptik, MAI Systems, Microsoft, Office Depot, OneSource, Packeteer (back in the black), PayPal, Pervasive Software, ProQuest, Rimage, Rockford, Teleflex and Wipro.

Mediocre returns came from Advanced Fibre Comms, AMS, Andrew, Apple, Aspect Comms (but back in the black), Avatar, Axcess, Benchmark Electronics, Boston Comms Group, Celestica, Ceridian, Compaq (but back in the black), CTG (back in the black), Electronics For Imaging, Embarcadero Technologies (back in the black), Equifax, Excel Technology, Hyperion (but back in the black), I-Flow, IBM, II-VI, Iomega, Ixia, Lam Research (back in the black), Linear Technology, Mercury Computer Systems, Moldflow, Molex, National Instruments, National Technical Systems (back in the black), NCR, Nokia, Novellus, Perle Systems (but back in the black), Philips Electronics, Planar Systems, PLX Technology, Rogers, Sanmina-SCI, SAP, Scientific Atlantic, Siebel Systems, SpectraLink, Sprint (but back in the black), Sybase, TDS, Tellabs, Telmex, Tetra Tech, Tollgrade Comms, Unisys, Veritas Software, Visual Networks (but back in the black), Xilinx (but back in the black) and Zebra Technologies.

Very poor results were reported by ActionPoint, Innovex (but back in the black), Phoenix Technologies, Symbol Technologies and Synplicity.

Losses came from Akamai, Alcatel, AMD, American Diversified Group, Applied Films, Applied Innovation, Artesyn Technologies, Atmel, ATMI, August Technology, Avici, Avid, AVX, BackWeb, Broadcom, Ciprico, Commerce One, Concero, Concerto Software, Conexant Systems, Copper Mountain Networks, CyberOptics, Cylink, CyPost, Cypress Semiconductor, Daleen Technologies, Digi International, Digimarc, Digital Lightwave, Dimension AB, Documentum, DTVN Holdings, E.piphany, E-Trade, Eagle Broadband, eGain Comms, EMC, eMobile Data, Emulex, Entrada Networks, ESNI, Evans & Sutherland, Exabyte, Extreme Networks, Gateway, Go Online Networks, Handspring, Helix Technology, Hifn, HNC Software, Hughes Electronics, I-many, i2 Technologies, iManage, InFocus, Informatica, Inktomi, inSilicon, Instinet, Interphase, InterVoice-Brite, Interwoven, Intrusion, Iona Technologies, Kana Software, Keynote, Komag, Kulicke & Soffa, Latitude Comms, Made2Manage Systems, MapInfo, McData, MKS Instruments, Motorola, Myrient, Nanometrics, National Datacomputer, NDC Automation, net.com, NetIQ, Netro, NetSolve, Netzee, Next Level Comms, Nextel Comms, Nortel Networks, NTN Comms, Omtool, ON Semiconductor, Orckit Comms, Parametric Technology, Parthus Technologies Plc., PC Connection, Plexus, PMC-Sierra, Primus, RadiSys, Ramtron, Rational Software, Razorfish, Rogers Comms, Rogers Wireless, Sandisk, SBC Comms, SBS Technologies, SCT, Secure Computing, Sierra Wireless, Silicon Image, Simplex Solutions, Sipex, SofTech, SonicWALL, Spectrian, SSP Solutions, StorageNetworks, Sun Microsystems, Sunrise Telecom, SupportSoft, Techdyne, Telelogic, Teradyne, Texas Instruments, Three-Five Systems, Timberline Software, TriQuint Semiconductor, TSI TelSys, Transmeta, TranSwitch, Tumbleweed Comms, United Pan-Europe Comms, Vastera, Vicor, Vital Images, Vitesse Semiconductor, Vizacom, WJ Comms, X-Rite and Xicor.

Other financial news included a share buy-back announcement from NetIQ; profit warnings from Apple, Aptimus, BellSouth, Corning, Internet Security Systems, Nokia, Orchestream, Pace Micro Technology, Symbol Technology, Tellabs, TriQuint Semiconductor and WorldCom; and share split announcements from NexPrise (reverse) and QPI. Additionally, Applied Theory has applied for Chapter 11 protection and McLeodUSA has emerged from Chapter 11 following a new reorganisation plan.

Locally

Crux (-33.3%)
Dectronic (+20%)
Digicor (+14.3%)
Dimension Data (+19.7%)
Explorer (+20%)
Global Technology (+16.7%)
I-Solution (+30.8%)
Idion (+19.6%)
Infowave (+38.9%)
Spescom (+18.2%)

Internationally

Exabyte (+74.1%)
Geoworks (+28%)
Kewill Systems (+90.6%)
Knowledge Management Software (-37%)
LanOptics (+58.9%)
MDC (+34.1%)
OnSpan Networking (+108%)
Peerless Systems (+41.7%)
Robocom Systems International (+70%)
Smartlogik Group (-44%)

I am in the US this week and therefore my next column will appear on 6 May, but will include a two-week review.