Siltek, Advtech profit warnings take the spotlight

Fujitsu`s staff cuts of about 10% (16 400 people) and the appointment of Colleen Kollar-Kotelly as the new judge for the Microsoft anti-trust case dominated the

world of IT and telecommunications last week.

[VIDEO]At home, the acquisition of Getronics SA by CS Computer Services and the profit warnings from Siltek and Advtech stole much of the local headline space.

• we saw good full-year figures from OneLogix (maiden audited results);

• satisfactory year-end numbers from Comparex (revenue only up a little but earnings well up) and PQ Africa (revenue only slightly up but well back in the black);

• poor full-year figures from Metropolis (black in the black, but only through disposals, otherwise an operating loss from significantly reduced revenues);

• profit warnings from Advtech and Siltek;

• Comparex warned of a dip in share earnings in 2002;

• Streamworks shares have been suspended following its acquisition by DNA Supply Chain Investments; and

• following the shareholders` meeting, it is expected that the shares of SecureData Solutions will be suspended from the JSE on 29 August and terminated at the close of trade on 31 August.

[Local]

Other local news included:

• the resignations of Sas du Toit as chairman of Spicer and Stephen Lumb as CEO of Igaming;

• the appointments of Dereck Daymond as MD (Asia, Pacific, Japan, Africa and Middle East) for Ascential Software and Gordon Frazer as deputy MD of Microsoft SA;

• the acquisition of Getronics SA by CS Holdings, a deal that includes a strategic alliance between CSH and Getronics worldwide;

• the 30% investment by IQ Business Group in Cape Town-based Adastra Technology, with an option for a further 21%; and

• the termination of the negotiations between Shmulik Stein International Investments and Softline and SVI Solutions.

• we saw restructuring announcements from Agere Systems, which is re-organising into two market-focused groups, Infrastructure Systems and Client Systems;

• Cisco has announced 11 technology groups to replace its line of business operations;

• Unique Broadband Systems will sell-off its European operations;

• Baltimore Technologies is likely to sell-off its content security business; and

• Zeros & Ones is to spin off its Zeros & Ones Technologies unit as a wholly-owned, private, free-standing subsidiary.

Look out for the sale of Ericsson`s microelectronics division; some restructuring and a possible reverse share split from ExciteAtHome in order to prevent its de-listing from Nasdaq and possible Chapter 11 proceedings; the sell-off of assets by Nx Networks in order to stave off applying for Chapter 11 protection; the sell-off by Sonera, the Finnish telecoms group, of its stake in Deutsche Telekom; the sale of Superior Telecom`s Comms Cable division; a buyer for troubled Polaroid; and the continuing nuances and changes in the proposals being put to the CA board meeting this week by a group of shareholders headed by Sam Wyly.

[International]

Other international news included:

• the

  appointment

  of Larry Sanders as CEO of Crossroads Systems;

• the

  resignations

  of Michael Lanham, COO of WorldQuest Networks and Stefan Rover, CEO of Brokat; and

• job loss announcements

  from Agilent Technologies, AOL, Baltimore Technologies, Equant, Fujitsu, Hutchinson Technology, LGP Telecom, Nx Networks, Sonera and Tellabs.

Excellent figures were posted by IQE and Neoware (back in the black).

Good numbers were recorded by IFS (back in the black), Logility (back in the black), Navision A/S, PSI AG and Zygo (back in the black.

Satisfactory results were announced by American Software (back in the black), C&D Technologies and Swisscom.

Mediocre returns came from Belgacom, Catalyst Semiconductor, Dimension AB, Eltek, LaBarge, OmniVision, Qualstar, SCB Computer Technology, SemTech, Synopsys, Ultimate Electronics and Xeta Technologies.

Very poor results were posted by Eagle Point Software, Hauppauge Digital and Software Spectrum.

Losses came from ACE*COMM, ADC Telecomms, Agilent Technologies, AmeriQuest Technologies, Baldwin Technology, Baltimore Technologies, BricsNet, Concurrent Computer, Convera, CSI Wireless, Cyberplex, CyPost, Dataram, Descartes Systems Group, DTVN Holdings, Entrada Networks, Formula Systems, Framfab AB, Gadzooks, I-Link, Independent Wireless, Intasys, Internet Commerce & Comms, Intuit, JD Edwards, Log On America, MCK Comms, Muse Technologies, National Datacomputer, NetSilicon, Network-1 Security Solutions, Norsat, Novell, Nx Networks, Olicom A/S, Plaintree Systems, Protect Data Sverige AB, QAD, Rage Software Plc., Raining Data, SonicPort, Startec Global Comms, Sycamore Networks, TangibleData, Tech Labs, Telenor, TSI TelSys, Tundra Semiconductor and VA Linux.

There seems to be an urgency to have an interim remedy/judgement before Windows XP is released to the public on 25 October.

Paul Booth, MD, Global Research Partners

Other financial news included profit warnings from ADC Telecomms, Agfa, Hutchinson Technology, IQE, Novell, Olicom A/S, Rohn Industries, Sycamore Networks and Tellabs.

Komag and PointOne have filed for Chapter 11 bankruptcy protection.

Locally

Dectronic (-66.7%)

E-Data (+150%)

Explorer (-50%)

JemTech (-50%)

PTH (-25%)

Sekunjalo (-23.5%)

Sempres (-27.3%)

Spicer (+25%)

UAM (+53.3%)

Y2Ktec (-25%)

Internationally

Anacomp (+28.2%)

Applix (-26.1%)

AtHome (-42.5%)

Cedara Software (+34.3%)

DA Consulting Group (-40%)

Filtronic (+28%)

Internet America (46.3%)

Infonet Services (-31.1%)

Jupiter Media Metrix (-34.4%)

UnitedGlobalCom (-26.1%)

The new trial judge for the Microsoft case is 58-year-old Colleen Kollar-Kotelly, a Clinton administration appointee. She was chosen at random from 17 judges chosen at random by computerised lottery.

There seems to be an urgency to have an interim remedy/judgement before Windows XP is released to the public on 25 October, as there are major concerns that XP perpetuates and extends anti-competitive practices already deemed to be illegal. Time is short as Microsoft released XP to PC makers on Friday.