Shock waves

The profit warnings from Compaq, which sent shock waves through the industry, and the $1.92 billion take-over of GeoTel by Cisco, dominated the international business world of IT last week. GeoTel Communications is a call-routing telecommunications software developer, and this deal finalises Cisco`s five-phase strategy of enterprise data, voice and video integration.

At home, the battle for Reunert stole much of the local focus, with the BOE/Altron bid now being discussed directly with shareholders.

• we saw the successful listing of Synergy Holdings in the development capital sector of the JSE;
• the announcement that NetActive, the Internet service provider, intends to list on the JSE`s development stage sector by the end of April; and
• the news that ATIO intends to list by the end of 1999, Afrileisure, a newly established IT company, in the near future and Sekunjalo Investments, which includes an IT portfolio, in May.

[Local]

Local Cautionary Notices (see attachment)

Local IT Listing Calendar (see attachment)

Other local news included:

• excellent maiden full-year results from Datacentrix;
• the announcement that Dimension Data would like to list off-shore within six months; and
• the acquisition of Technology Communications Holdings by Union Alliance Media, which listed on the redevelopment sector of the JSE last Wednesday.

• we saw the continuing battle over the fate of Telecom Italia, with discussions now under way with Deutsche Telecom and possibly British Telecom re a merger. It seems anything is better than falling into the hands of Olivetti!
• Additionally, the fight over Japan`s International Digital Corporation seems to have been won by NTT over Cable & Wireless, which already owns a 17.7% stake, but the deal could be contested since it definitely smells of protectionism.
• There was also the naming of ex-GM of IBM Americas business unit, John Thompson, as the new chairman and CEO of Symantec.

[International]

We saw excellent figures from Advantage Learning Systems, Advent Software, ARM Holdings, Cenit AG, Cree Research, E-TEK Dynamics, Gentner Comms, Kronos, Mercury Interactive, Rational Software, Tellabs, Timberline Software and Veritas Software.

GeoTel Communications is a call-routing telecommunications software developer, and this deal finalises Cisco`s five-phase strategy of enterprise data, voice and video integration.

Losses came from @Home Networks (but revenue more than quadrupled), Allaire (but revenue almost doubled), Altris Software, AMD, Andrew, Aspect Telecomms, Broadcast.com (better than expected and revenue more than doubled. It is in the process of being acquired by Yahoo!), CompuCom Systems, Dataware Technologies, Documentum, EarthLink Network (but better than expected), Effective Management Systems, Exabyte, Excite, I-Link, Infoseek (but revenue more than doubled), Inktomi (but revenues quadrupled), Intevac (revenue down over 66%), Iona Technologies, Larscom, National Datacomputer, Netegrity, OnSale, OpenROUTE Networks, Preferred Networks, Robocom Systems International, Sandisk, ScanVec, SEEQ Technology, Silicon Storage Technology, SunGard Data Systems, Three-Five Systems and Trident Microsystems.

Good numbers were recorded by ACI Telecentrics (back in the black), ACT Networks, ADP, Altera, American Management Systems, Anaren Microwave, Apex PC Solutions, Apple (better than expected), Ardent Software (back in the black), Avant!, Computer Research, Computer Network Technology, DSP Comms, C-Cube Microsystems, Gartner Group, I-Cube, Intel, Keane, Netsmart Technologies, Omnicom (although income not declared), Overland Data, Pericom Semiconductor, Quickturn Design Systems (back in the black), Rogue Wave Software (back in the black), Security Dynamics, SpectraLink; ST Systems, Sun Microsystems and Unisys.

Satisfactory numbers were reported by CellStar, Dallas Semiconductor, Eastman Kodak, FileNET, Groupe Bull (but income not declared), Hughes Electronics, Linear Technology, Motorola, Rambus, Swisscom AG, Seagate Technology (back in the black) and Symantec.

Mediocre returns came from Action Computer Supplies Holding, ATS Money Systems, Cambridge Technology Partners, Novellus Systems, PairGain and SCT. Very poor results came from ChoiceTel Comms and Iomega (just in the black and revenue down).

Other financial news included profit warnings from AMD (again), Executone Information Systems (loss expected), Gentia Software, Inprise, Meta Group, Storage Technology, Sun Microsystems, Versant (small loss expected), VocalTec Comms (loss expected to be double that originally expected) and Walker Interactive (loss expected). There were also share splits from Comverse Technology, Nokia, Price Comms and Qualcomm; and re-stated figures from Segue Software.

Locally

Aplitec (+28.6%)
Imphold (+31.8%)
MB Technologies (-22.3%)
MMW (+46.7%)
Selective Financial Group (+30.4%)
Stantronics (+22.6%)
Techcom (+24.7%)
ValueCom (+40.2%)

Internationally

American Nortel Comms (+36.6%)
Compaq (-23.6%)
Computer Horizons (+32%)
Creative Technology (+21.4)
EMC (-20.5%)
Iona Technologies (+29.2%)
Marcam (-20%)
Meta Group (-39.2%)
Olicom (+41.7%)
PCD (-24.4%)
Peerless (-20.5%)
Rational Software (+26.9%)
Rogue Wave (+21.6%)
Security First Technologies (+20.7%)
Staffware (+35.6%)
Storage Technology (-29.1%)
Sun Microsystems (-21.8%)
Tekelec (+21.2%)
Walker Interactive (-35.3%)

Will Ixchange win the race for the first overseas IT listing? Last week`s acquisition of GoldMine Software and its planned merger of this with Bendata, which was taken over last August, could be the right vehicle for a Nasdaq listing. The profile of the merged entity looks extremely attractive.

However, Datatec, Dimension Data, Comparex and others have expressed their overseas intentions regarding listings, so the next few months could be very interesting.