Slow going for the SNO

Vodafone`s acquisition of a major stake in France`s second largest mobile phone operator, Cegetal SA, and the start of the flood of quarterly results dominated the international world of IT and telecommunications last week.

USA`s Software magazine has published its annual 500 listing of technology companies based on software and services revenues, and as one would expect, IBM and Microsoft maintain the top two positions.

Paul Booth, MD, Global Research Partners

At home, the continued lack of overseas interest in the second national telecoms operator (SNO) and Datatec taking top honours in the SA Global Awards stole much of the local headline ICT space.

we saw very good interim numbers from Altron (attributable earnings significantly up following disposals);

a warning from the JSE to Bryant Technology re late financial reports that could see its stock suspended at the end of the month; and

the demise of Dectronic as a technology company and a listed stock following a reverse take-over and a name change to Avasa holdings.

[Local]

Other local news included:

the agreement put in place by Spescom Group through a negotiation orchestrated by its subsidiary, Leseding Electronics Investments, that will see Tactical Software Systems become the distributor in SA for its eB document management software suite;

Keops Isis changed its name to Keops Altech;

Connection Group cleaned up its shareholder base;

Casey consolidated its share structure;

E`Voucher, a black-owned company that will roll-out a prepaid recharge mobile phone service, was launched; and

Datatec was named as SA`s most global company, followed closely by Idion.

we saw a major restructuring from AlphaNet Solutions; and

the spin-off by Quantum of its NAS business to newly formed Snap Appliance.

Additionally, look out for the possible sell-off by France Telecom of some or all of its mobile assets; the possible merger of Motorola and STMicroelectronics; and the possible buyer of Inmarsat Ventures.

[International]

Other international news included:

the appointments of Ed Colligan as president of Handspring, Wayne D`Ambrosio as president of ADC International, David Pratt as interim president and CEO of AvantGo, and Al Shipp as president of Critical Path;

the retirement of William Purdey, president and COO of AMS; and

job loss announcements from Akamai Technologies, ARM Holdings, EDS, Honeywell, OpenTV, Retek and Sun Microsystems.

We saw excellent figures from L3 Comms, NVE (back in the black) and SanDisk (back in the black).

Good numbers were recorded by Adaytum, CDW Computer Centers, Concerto Software (back in the black), HTE (back in the black), IDS Scheer AG, Internet Security Systems (back in the black), Itron, Lexar Media (back in the black), Linear Technology, Micronas Semiconductor Holding AG (back in the black), Micronetics, Microsoft, Monolithic Systems Technology, Nanya Technology (back in the black), National Instruments, Packeteer (back in the black), Qlogic, RF Micro Devices, SafeNet (back in the black), Samsung Electronics, SK Telecom, Stratos Global (back in the black), Symantec (back in the black), TESSCO Technologies, TTP Comms, UTStarcom, Verilink (back in the black), Verisity, Vital Images (back in the black), WebEx Comms (back in the black), Western Digital, Xilinx and Zebra Technologies.

Satisfactory results were posted by ADP, Alliance Data Systems (back in the black), AMS, AXIS Comms, Avid Technology (back in the black), Ceridian, Concord Comms (back in the black), Equifax, Excel Technology, FileNet (back in the black), Giga Information Group, II-VI, Intel, ITG, Mercury Computer Systems, Mercury Interactive (back in the black), Molex, NetSolve, Nokia, Pervasive Software, Pitney Bowes, Plantronics, SAP, Symbol Technologies (back in the black), Teleflex, Timberline Software, Unisys and Wipro.

Mediocre returns came from Adtran, Advanced Fibre Comms, ARM Holdings, Barra, Black Box, Cadence Design Systems, Check Point Software, Cognex, Compuware, Cree, eBay, EFI, EMC (back in the black), Fairchild Semiconductor (back in the black), Motorola (back in the black), CTG, Honeywell (back in the black), IBM, Iomega (back in the black), McData (back in the black), NetSolve, Novellus, PeopleSoft, Polycom, Renaissance Learning, SchlumbergerSema, Scientific-Atlanta, Sybase (back in the black), Telmex, Tollgrade, Traffix, US Cellular and Visual Networks.

Very poor results came from Information Resources (back in the black), infoUSA, Optika (back in the black), RF Monolithics and X-Rite.

Losses were reported by Advent Software, AMD, Apple, Applied Innovation, Applied Micro Circuits, Ask Jeeves, Atmel, ATMI, Avocent, Bell Microproducts, Broadcom, Brooktrout, C-COR.NET, Celestica, CNET Networks, Comtech Telecomms, Corio, CyberSource, Cypress Semiconductor, Dice, DigitalThink, Dot Hill Systems, DoubleClick, e.piphany, Electronic Tele-Comms, Ericsson, Evans & Sutherland, Extensity, Extreme Networks, Fibernet Group, FSI International, Gateway, Handspring, Helix Technology, Hughes Electronics, i2 Technologies, IDT, IFX, iManage, Informatica, Insignia Systems, Instinet, Interland, Interphase, Interwoven, Intrusion, Iona Technologies, Kana Software, Lam Research, Latitude Comms, Macromedia, Made2Manage Systems, MKS Instruments, NetScout Systems, Network Equipment Technologies, Nortel Networks, Omtool, Overland Storage, Parametric Technology, Philips Electronics, Phoenix Technologies, Pixelworks, PLX Technology, PMC-Sierra, PrintCafe Software, Proxim, PTC, RadiSys, Rational Software, Retek, Rogers Comms, Rogers Wireless, Rogue Wave Software, RSA Security, SBS Technologies, Shaw Comms, Siebel Systems, Sprint, StorageNetworks, Stratex Networks, Sun Microsystems, Sunrise Telecom, SYS Technologies, TDS, Telelogic, Tellabs, Teradyne, Transmeta, TranSwitch, TTM Technologies, Turnstone Systems, Vicor, Vignette, Viseon, Voxware, Workstream, Xicor and Zamba Solutions.

Other financial news included share buy-back announcements from Applied Micro Circuits, Cetek Technologies, chinadotcom, Fairchild Semiconductor, IMSI, Informatica, Mercury Computer Systems, Pervasive Software, Qlogic and SpectraLink.

There were also profit warnings from ADC Telecom, AOL, AOL Latin America, Applied Materials, Applied Micro Circuits, AXT, Cap Gemini Ernst & Young, Critical Path, EMC, Ericsson, Gateway, Harris, Intel, McData, Morse, Plantronics, PSI AG, S&T Systems Integration & Technology Distribution, Troy Group and WCI Comms; and a share split announcement from Lucent Technologies (reverse).

Additionally, Liberate Technologies is to re-state its 2002 revenues; and Williams Comms emerges from Chapter 11 as WilTel.

Locally

Aqua Online (-25%)
AST (-15.9%)
Control (+16.7%)
EC-Hold (+30%)
Elexir (+50%)
EOH (+16.1%)
Jasco (+18.8%)
Paracon (+17.6%)
Pinnacle (+36.4%)
UCS (+20%)

Internationally

Aspen Technology (+89.7%)
CTC Comms Group (+73.9%)
eXcelon (+60.7%)
Genesis Microchip (+54.8%)
Intershop (+284.8%)
PCD (+57.1%)
Portal Software (+62.5%)
Quantum (+49.4%)
SCM Microsystems (+76.8%)
SGI (+74.6%)

USA`s Software magazine has published its annual 500 listing of technology companies based on software and services revenues. As one would expect, IBM and Microsoft maintain the top two positions. The major movements at the top of the list were Computer Sciences (up to number six from 21), HP (slipping to 23 from six), BMC Software (slipping to 36 from 22), Hitachi (slipping to 37 from 13), and Adobe (slipping to 39 from 25).