Rumours rule, rile

The $6 billion merger of two electronics contract manufacturers, Sanmina and SCI Systems, and the flood of quarterly losses and poor results from companies such as Ariba, Commerce One, EMC, Ericsson, Microsoft, Nortel Networks, Sun Microsystems and Veritas Software, dominated the internationalworld of IT and telecommunications last week.

[VIDEO]At home, the continuing rumours re Dimension Data and MB Technologies stole much of the local headline space.

* we saw the denial by EDS that it was interested in the acquisition of Dimension Data;

* the resignation of JT Flanagan, CEO of OAI; and

* the change of Global Technologies` financial year-end.

[Local]

Other local news included

• the news that Datatec had increased its shareholding in its subsidiary, Westcon, to 90.2%;

• the postponement of Cape IT Expo until March 2002;

• the rumours that this week`s government recommendations re the local fixed-line telecoms policy would include two additional national operators "immediately" as well as for Sentech to provide international calls; and

• the announcement by MB Technologies that it would issue new shares in order to comply with JSE listings requirements.

* we saw the abandonment of the acquisition of Baltimore Technologies by Chantilly;

* the name change of Netergy Networks to 8X8;

* the announcement by Microsoft that it will not include a Java Virtual Machine in Windows XP;

* the news that Intelsat is now a privately-held company; and

* the creation of Vigilant Systems, a US-based company that intends to offer capabilities that improve the operational efficiencies of software commerce for software suppliers worldwide.

There are a number of surprises in Software Magazine`s top 500 companies list including SAP at only number 11, Hitachi at number 13, SunGard Data Systems at 19 and EMC at 23.

Paul Booth, MD, Global Research Partners.

Additionally, watch out for the possible buy-out of Nortel Network`s Clarify by SAP; the sell-off of British Telecom-owned subsidiary, Clear Comms of New Zealand; and an improved offer from Comcast for AT&T`s broadband business.

International acquisitions, mergers, joint ventures etc (see attachment).

Other international news included

* the appointments of Robert Becker as CEO of Jupiter Media Metrix, Ly-Huong Pham as CEO of TurboLinux and Eric Stang as president and CEO of Lexar Media;

* the resignations of Ronald Burr, president and co-founder of NetZero, Larry Mueller, CEO of Ariba, Joel Rosen, president and CEO of NaviSite, and Paul Thomas, CEO of TurboLinux; and

* job loss announcements from Alcatel, AMSL, Applied Micro Circuits, Cabletron (GNTS), Comdisco, Cray, CyberCare, Cypress Semiconductor, Gensym, Handspring, HighWave Optical, i2 Technologies, Iomega, Latitude Comms, Lineo, Mercury Interactive, Misys, Parametric Technology, Philips Electronics, ServerVault, Storage Networks and Tellme Networks.

We saw excellent figures from 1mage Software (back in the black), Digital India, eBay, Micromuse, Synplicity (back in the black) and THQ (back in the black).

Good numbers were recorded by Acta Technology, Advanced Power Technology, Advent Software, Borland, Business Objects, Catapult Comms, Citrix Systems, Cognizant Technology, Compuware, Diagonal, Digital Lightwave, Epsilon, Flextronics (back in the black), Forrester Research, Hybrid Networks, Illuminet Holdings, International Game Technology, ITT Educational Services, Mitek Systems (back in the black), OneSource (back in the black), Planar Systems, Renaissance Learning, SAP, Scientific-Atlanta, Siebel Systems, SpectraLink, TyCom and Xaar.

Satisfactory figures were posted by Brooktrout, CDW Computer Centers, E-Trade Group (back in the black), ESI, Genesis Microchip, IBM, Made2Manage Systems (back in the black), Manhattan Associates, Microgen (back in the black), Network Six, Pitney Bowes, Polycom, ProQuest, Rohn Industries, SCT, SDRC, Sprint (back in the black), Telmex and US Cellular.

Mediocre returns came from Adtran, AMS, Andrew, Ansys, Apple, CanWest Global Comms, Celestica, DSP Group, Eastman Kodak, EMC, Equifax, Exar, Excel Technology, GCI (but back in the black), Intel, Ixia, Ixys, JDA Software Group, MapInfo, McData, Media General, Mercury Interactive, Microchip Technology, Microsoft, MIPS Technologies, Misys, National Instruments, National Processing, NCR, NetSolve, NIIT, Nokia, Novellus Systems, Office Depot, PC Connection, PC Mall (but back in the black), Plantronics, Plexus, Power Integrations, Richardson Electronics, Rimage, Rogers, Samsung Electronics, Sawtek, Semitool, Silicon Storage Technology, SonicWALL, Symantec, Timberline Software, Tollgrade Comms, TriQuint Semiconductor, TTM Technologies, Unigraphics Solutions, Unisys, X-Rite, Xicor, Xilinx and Zebra Technologies.

Very poor results were posted by Applied Innovation, Cypress Semiconductor, Data Research Associates, Digi International, Elantec Semiconductor, General Semiconductor, Pervasive Software (but back in the black), Sanmina, Sento, Sunrise Telecom, Tessco Technologies and Zoran.

Losses came from 3D Systems, ActionPoint, Active Power, Aehr Test Systems, Akamai Technologies, Alliance Data Systems, Alliance semiconductor, Alpha Industries, Antec, AOL Time Warner, Applied Micro Circuits, Ariba, Artesyn Technologies, Artisan Components, ASC, ASML Holding NV, Aspect Comms, Atmel, Avici Systems, Avid Technology, Avocent, Benchmark Electronics, Bid.Com International, Broadcom, Broadwing, Cadence Design Systems, Captaris, Carrier Access, Centillium Comms, CenterSpan Comms, Celeritek, Ceridian, Cerner, Chartered Semiconductor, Clarent, Click2learn, Com21, Commerce One, Concero, Concord Comms, Conexant Systems, Corio, CTG, CTS, CyberSource, Datalink, Dice, Digimarc, DigitalThink, Documentum, E.piphany, EarthLink, ECCS, EchoStar Comms, Ericsson, Evans & Sutherland, Extensity, Extreme Networks, FileNET, Firstwave Technologies, Gartner, Gateway, Giga Information Group, Groupe Bull SA, Handspring, Hifn, HNC Software, Hughes Electronics, Hutchinson Technology, Hynix Semiconductor, i2 Technologies, Ibis Technology, IDT, IKOS Systems, iManage, IMS, Inet Technologies, Informatica, Information Resources, Inktomi, Innoveda, Insignia Solutions, inSilicon, Interlink Electronics, Internet Security Systems, Interphase, Interwoven, Intrusion.com, Iomega, Keynote Systems, Komag, Level 3 Comms, M-Systems, Macromedia, Micronic Laser Systems AB, Motient, MRO Software, NEON Systems, net.com, NetManage, NetScout Systems, NetSpeak, Network Associates, Network Commerce, Norstan, Nortel Networks, NovAtel, Nuance, Open Market, Optika, Orckit Comms, Paradyne Networks, Philips Electronics, Phoenix technologies, Photon Dynamics, Pixelworks, PLX Technology, PMC-Sierra, Polaroid, Primix, Proxim, QualMark, Radcom, RadiSys, Rainmaker Systems, RealNetworks, Repeater Technologies, Retek, RF Micro Devices, Rogue Wave Software, Sage, SanDisk, Seagate Technology, Secure Computing, Sierra Wireless, Sipex, Smith Micro Software, Spectrian, SpeechWorks International, SR Telecom, StorageNetworks, Stratos Global, Sun Microsystems, Support.com, Talarian, Telaxis Comms, Telephone and Data Systems, Tellabs, Tellium, Teradyne, Tetra Tech, TheStreet.com, Three-Five Systems, Transmeta, Tripath Technology, Turnstone Systems, US Wireless, Veritas, Vicor, VINA Technologies, Virage Logic, Vital Images, Vitesse Semiconductor, Vyyo, WatchGuard Technologies, Western Multiplex, Workgroup Technologies, XM Satellite Radio Holdings and Zamba Solutions.

Other financial news included profit warnings from AMSL, Analog Devices, Corvis, Cray, Dell, Elantec Semiconductor, Ericsson, Frontstep, i2 Technologies, IBM, Latitude Comms, McData, Micromuse, Microsoft, Misys, NIIT, Philips Electronics, Pinnacle Systems, Plantronics, Semitool, Siebel Systems, Symbol Technologies, Unisys and Veritas Software.

There was a satisfactory IPO from Accenture; and a planned listing next month from French Linux vendor, MandrakeSoft SA. Additionally, Comdisco (US operations) has applied for Chapter 11 bankruptcy protection.

Locally

Cape Empowerment Trust (+80%)

Crux (+20%)

Elexir (-25%)

Infowave (-26.7%)

OneLogix (-21.4%)

Pradatech (+17.6%)

PTH (-25%)

Sethold (-26.7%)

Y3K (+50%)

Internationally

American Nortel Comms (-37.25%)

DA Consulting (-43.1%)

Informatica (-47.6%)

Komag (-40%)

Mitek Systems (+113.2%)

NetStore (-36.9%)

Pervasive Software (+40.3%)

Scientific-Atlanta (-41.3%)

Scan-Optics (+76%)

Walker Interactive (+55.6%)

This seems to be the time of the year for the issue of various ratings by IT and/or business publications. One of these undertaken annually by Software Magazine lists the top 500 companies by software and services revenues.

In this year`s ratings, the top 10 are IBM, Microsoft, PricewaterhouseCoopers, EDS, Oracle, HP, Accenture, Cap Gemini Ernst & Young, Compaq and Unisys. However, there are a number of surprises including SAP at only number 11, Hitachi at number 13, SunGard Data Systems at number 19 and EMC at number 23.