Siltek`s woes top the news

The continuing list of "profit" warnings, including Agilent Technologies, EMC, Motorola (again) and Sun Microsystems dominated the international world of IT and telecommunications last week.

[VIDEO]At home, the disastrous interim numbers from Siltek, and the associated massive drop in its share price, stole much of the local headline space.

• we saw good half-year numbers from CS Holdings (revenue and attributable profit both up and margins also improved) and Unihold (revenue, income and margins all up);
• poor half-year figures from Metropolis (only in the black because of the sell-off of certain businesses, and revenue significantly down);
• interim losses from I-Fusion (but revenue up), Siltek (but revenue slightly up) and Spicer Holdings (revenue also well down); and
• the suspension of the shares of Top Information Technology Holdings.
• Additionally, Smacsoft was de-listed from the JSE, following its acquisition by UK-based and LSE-listed AFA Systems, and the details of the finalisation of the Usko/Fintech merger and the subsequent creation of Bytes Technology Group was also published.

[Local]

Other local news included:

• the resignations of Keith Kunene, executive chairman of KTL, and Hans de Nysschen, CEO of TopTech, after only a month in that position;
• the GSM Association`s recognition of Vodacom`s chief executive Alan Knott-Craig as one of the world`s most distinguished contributors to the development of the GSM cellular industry worldwide;
• the launch of Consilience, a joint venture formed by the J&J Group (Jay Naidoo`s company) and India`s Tata Group; and
• the announcement that a buyer is being sought for Transnet`s remaining stake in M-Cell.

• we saw the name changes of Axcess Technology to Panja and PSI Technologies to EPSIIA; and
• the announcement of a major re-organisation by Hitachi.

Watch out for the outcome of the discussions re the salvaging of the British Telecom and AT&T Concert joint venture; the buyers from the sell-off by Deutsche Telekom and France Telecom of their shareholdings in Sprint and other non-strategic assets; and the potential acquisition or additional investment in Dobson Comms by AT&T.

[International]

Other international news included:

• the resignations of Timothy Dreisbach, CEO and chairman of Metricom, and Abel Linares, COO of Terra Lycos; and
• job loss announcements from Acer, Adaptive Broadband, Aptimus, Framfab, G-Tech, Polaroid and Tiscali.

This week sees more local results with interims expected from, for instance, Aqua Online and Ixchange.

Paul Booth, MD, Global Research Partners

We saw excellent figures from BEA Systems (back in the black), Brocade Comms Systems, Camtek, Dialog Semiconductor, Dimension AB, Helix Technology and Lexant.

Good numbers were recorded by 3D Systems, ACT Manufacturing, Agilent Technologies, Allen Telecom (back in the black), ArtemisSoft, Cobra Electronics, Computer Network Technology (back in the black), Dicom Group, Evolving Systems, Exactech, Korea Telecom, Logica, Macrovision, Micro General (back in the black), Pragmatech Software, Radyne ComStream, SemTech, Syncor International and Tornado Group.

Satisfactory figures were posted by ACT Teleconferencing, Aftermarket Technology, Autodesk, CompuDyne, Indigo (back in the black), RadioShack, Sunquest Information Systems and Telia.

Mediocre returns came from ADC Telecomms, Advanced Semiconductor Engineering, Belgacom, Bell & Howell, Ciber, DocuCorp, Encompass Services, Inter-Tel, Interlogix, Intuit, Matsushita Electric, Quanta Services, Synopsys, Tele Centro Oeste Celular, Tele Danmark, The IT Group, Valassis Comms and XETA Technologies.

Very poor results came from Aladdin Knowledge Systems, Butler International, ClickAction (but back in the black), Communication Intelligence, Fargo Electronics, Hytek Metrologic Instruments, Microsystems (but back in the black - just), Taitron Components and Tundra Semiconductor.

Losses came from Alaska Comms Systems, Alpnet, American Software, Applied Signal Technology, Arel Comms & Software, Baltimore Technologies, Bitstream, Brokat Technologies AG, Call-Net Enterprises, CDI, CE Software, Checkpoint Systems, Colt Telecom, Computer Horizons, Crosswalk.com, CTE, CTC Comms Group, Cypress Comms, Datakey, DataWave Systems, Diagonal, E-Stamp, Edgewater Technology, Egghead.com, Elecsys, Elite information Group, Eloquent, Encad, F-Secure, Focal Comms, Framfab, Global Technologies, Globaltron, GraphOn, Hyundai Electronics, I/NET, Integrated Business Systems & Services, Interliant, Landmark Systems, LanOptics, Leapnet, Logility, Lycos Europe NV, Madison River Comms, MCT, Merant, Microgen, Millennium Cell, Millicom International Cellular SA, MRV Comms, Muse Technologies, Nanophase Technologies, Numerex, O2 Essential Marketing Technologies, OmniVision Technologies, On2.com, OTI, Portal Software, Prologic Management Systems, Pumatech, Rhythms NetConnections, Rural Cellular, Safeguard Scientific, SBA Comms, ScanOptics, SoftNet Systems, SPSS, SRS Labs, StarMedia Network, Superconductor Technologies, Ursus Telecom, US Lec, US Unwired, VA Linux, Vasco Security International, Ventro, Vertex Interactive, VerticalNet, Vescom International, Vital Images, VTEL, Walker Interactive Systems and WebLink Wireless.

Other financial news included profit warnings from Agere Systems, Agilent Technologies, Brocade Comms Systems, Covad Comms, Deutsche Telekom, EMC, G-Tech, GSI Lumonics, Hikari Tsushin, Matsushita Electric, Motorola, NEC, Polaroid and Sun Microsystems; share split announcements from CMKI and enSurge; and a withdrawn IPO from YellowBrix (B2B infrastructure).

Locally

Bryant (-25%)
Cape Empowerment Trust (+66.7%)
CIH (-50%)
E-Data (+333.33%)
I-Tech (-25%)
Paradigm (-28.6%)
Pinnacle (-25%)
Siltek (-66.7%)
Synergy (-40%)
Vesta (+41.4%)
Y2KTec (-33.3%)

Internationally

ConMat Technologies (+55%)
CTC Comms Group (-27.5%)
Infobank International (-25.9%)
Manugistics (-30.5%)
New Era of Networks (+28.7%)
Outpost.com (-37.1%)
Polycom (-30.6%)
Superscape (-27.4%)
TeleCity (-39.5%)
VA Linux (-35.1%)

This week sees more local results with interims expected from, for instance, Aqua Online and Ixchange, with the former, I expect, showing why it stands out on its own within the venture capital sector of the JSE.