Second time lucky?

The $7 billion merger between First Data and Concord EFS, and the rise in the fraud value at WorldCom to possibly $11 billion dominated the international world of IT and telecommunications last week.

Last week saw atrocious figures from Global Technology.

Paul Booth, MD, Global Research Partners

At home, the atrocious figures from Global Technology and the auditors emphasis of matter re the group`s ability to continue as a going concern; the J&J investment in Faritec; and the re-start of the second national telecoms operator (SNO) process stole much of the local ICT headline space.

* we saw satisfactory maiden annual numbers from Beget Holdings (revenue below pre-listing forecast but earnings well up on pre-listing numbers);

* very poor year-end numbers from Dynamic Cables (but revenue well up);

* a disastrous set of annual figures from Global Technology (revenue well down and a loss bigger than the revenue number);

* Square One Solutions Group posted a slight increase in revenue and it is back in the black, but only just;

* satisfactory interims from Vesta Technology Holdings (revenue up a little and back in the black); and

* interim losses from Aqua Online (revenue also well down), Bryant Technology, Cycad (no revenue figures available) and EC Hold (revenue also well down).

Other local news included:

* the empowerment-led management buy-out of Reed Exhibitions SA to form Exhibitions for Africa;

* the news that the SNO process is to re-start, this time with less stringent requirements, with bids expected to be submitted by the end of this month in order that a decision could be made by mid-year;

* Kgorong Investment Holdings acquired 25.1% of telecoms cable manufacturer, ATC;

* Legato Systems opened a local office;

* NetActive changed its name to CCN Holdings Limited and switched to the Cyclical Services - Support Services JSE sector;

* Steven Cohen was appointed as MD of Softline Pastel;

* a partnership deal between UK-based Datastrip and Square One Solutions Group; and

* an investment in Faritec by a consortium led by the J&J Group that also sees Faritec gaining an interest in Consilience, a joint venture company in which the J&J Group has a 66.7% interest.

Additionally, it seems that both MTN and Vodacom will bid for Namibia`s second mobile licence.

* Marconi expects its restructuring to come into effect on 19 May, when its shares will re-list on the LSE;

* the Indonesian government intends to sell 25% of Indonesia`s largest mobile operator, PT Telekomunikasi, later this year;

* Cable & Wireless has sold off its domestic-only services in Belgium, Netherlands, Russia and Sweden to management, and its Swiss operation to Smart Telecom SA; and

* the news that the size of the fraud at WorldCom could rise to $11 billion.

Additionally, look out for the possible sale of Deloitte Consulting IT services following the decision by Deloitte Touche Tohmatsu not to spin-off from the company as was originally planned; a US acquisition by Terra Lycos; the outcome of the hostile bid by shareholders of Mercator Software for control of the company; the possible acquisition of MMO2 by KPN NV; the possible merger of Register.com and Tucows, the second and third players in the domain registration market; and the fate of Fastnet, as doubts have been expressed about its ability to continue as a going concern.

Other international news included:

* the appointments of Francesco Caio as CEO of Cable & Wireless, Kevin Loosemore as COO of Cable & Wireless, Carey Naddell as chairman and CEO of Eurotech and Robert Peebler as president and CEO of Input/Output;

* the resignations of Michael Mahoney as chairman and CEO of Viatel and John van Siclen as CEO and president of Interwoven; and

* job loss announcements from Computer Associates, InfoSpace, Manugistics, NetIQ, Nortel Networks, Systems & Computer Technology and TeliaSonera.

We saw very good* numbers from LanVision Systems and Xfone.

Good figures* were recorded by Cognos and Lufthansa Systems Group; and satisfactory* ones by AS Eesti Telekom, Astea International (back in the black) and D&E Comms.

Mediocre* returns came from CIMNET, Ezenia, Indonesia Indosat, Infodata, Storage Computer (but back in the black), Techdyne (but back in the black), Tenfold (but back in the black) and Unilog SA; while very poor results* came from Lason.

Losses* were posted by ACTV, Affinity Technology Group, Apogee Technology, Applied Graphics Technologies, BarPoint.com, Charter Comms, Cimetrix, Comdial, Cybertel Comms, Data Systems & Software, Davel Comms, Digital Fusion, FASTNET, Forbidden Technologies, Frontline Comms, FullNet Comms, GFT Technologies AG, Horizon PCS, I-Sector, iDial Networks, Inksure Technologies, JMAR Technologies, Loral, NCT Group, Nematron, Net Servicos, NTL, OTI, ProTech Comms, Q Comm, Research In Motion, Sentry Technology, Speedus, Storage Engine, Superconductive Components, Superconductor Technologies, Teknowledge, Telebyte, Teltronics, TeraForce Technology, UnitedGlobalCom, United Pan-Europe Comms, US Unwired, Wave Systems and WorldPort Comms.

Other financial news included share buy-back announcements from WebSense and WJ Comms; results/profit warnings from Advent Software, Aftermarket Technology, Asyst Technologies, Cerner, ECI Telecom, ECTel, Embarcadero Technologies, Entrust, Fastnet, Internet Security Systems, Intershop Comms AG, Interwoven, Iona Technologies, JDA Software Group, Mitsubishi Electric, MRO Software, Nassda, National Instruments, Neoware, ON Technology, Parametric Technology, PeopleSoft, Polycom, Powerwave Technologies, PTC, RADVision, SCT, Siebel Systems, STMicroelectronics, Sybase, Virage Logic, Visual Networks, WebEx and WebMethods; and a share split announcement from Fonix (reverse). Additionally, Charter Comms and Gateway are to re-state their financial figures for the last few years.

Locally

AST (-20%)
CompuClearing (+13%)
Cycad (-33.3%)
DNA (-11.8%)
Global Technology (-44.4%)
Idion (+21.1%)
Jasco (+14.7%)
OSI (-20%)
Pinnacle (-10%)
Paracon (-18.6%)
Spescom (+10%)

Internationally

Applied Imaging (+42.5%)
Asyst Technologies (-31.6%)
Auspex Systems (-31.6%)
Elcom International (+125%)
Elite Information Group (+47.9%)
Iona Technologies (-37.5%)
Leap Wireless (+41.7%)
PCD (-60%)
PSC (-33.3%)
SONICblue (-50%)

Fortune Magazine has released its latest Fortune 500 listings. From a technology perspective, the highest ranked companies are IBM and Verizon Comms at number eight and 10 respectively, up from nine and 11. The highest placed newcomer is AT&T Wireless Services entering at number 119, while WorldCom has completely dropped out of the list. Other key movements include HP up to 14 from 28, Dell up to 36 from 53 and Microsoft up to 47 from 72.

* NB

Guidelines for the categorisation of results are as follows. The figures are always in comparison with the equivalent period for the previous year; pro forma numbers are ignored (the terminology may vary slightly from country to country).

* Excellent: Both revenue and net income growth are in excess of 50%.

* Good: Both revenue and net income growth are in excess of 10%.

* Satisfactory: Revenue is within 10% of previous year and net income is up.

* Mediocre: Either revenue and/or net income is down.

* Very poor: Net income is less than 1% of revenue.

* Loss: A loss has been recorded.