SNO, charter progress

ARM`s $913 million acquisition of Artisan Components and the new EC probe into the Microsoft/Time Warner software deal dominated the international world of IT and telecommunications last week.

At home, M-Web`s purchase of Tiscali SA, the publication of the fourth draft of the ICT black empowerment charter, the announcement of the second national operator (SNO) licensing date; and the ERP.com empowerment deal stole much of the local ICT headline space.

Satisfactory year-end figures from Bidvest (revenue and earnings both up);

Mediocre full-year figures from Bidnet (part of the Bidvest Group - revenue significantly down but back in the black) and Bidoffice (part of the Bidvest group - revenue static and trading income down);

Full year loss from mymarket.com (part of Bidvest Group - revenue up more than 100%);

Trading updates from AST and Mustek; and

The formal termination of the listing of Intervid`s shares.

Other local news included:

Blitec purchased a 25.3% stake in ERP.com;

I-Fusion was re-named as Bidvest Network Solutions (Bidnet);

Datatec`s subsidiary, Logicalis US Holding, acquired Solution Technology;

Infowave decided to remain on the JSE`s DC board following the JSE`s decision not to close its DC and VC sectors;

Atio bought UK-based X-Plor Holdings, a telecoms services company;

The announcement that the SNO licence will be awarded on 17 September 2004; and

The publication of the fourth draft of the ICT empowerment charter.

New local distributorships included that of Labat Group for Leading Edge Solutions` Advanced BusinessLink`s Strategi product.

The name changes of APA Optics to APA Enterprises, Front Porch Digital to Incentra Solutions and USLink to TDS Metrocom;

Telefonica Moviles and Portugal Telecom will increase their stakes in four Brazilian subsidiaries; and

The European Commission`s anti-trust move to investigate the Microsoft and Time Warner deal to create antipiracy software.

An international strategic partnership was announced between Kodiac Networks, a provider of advanced wireless systems, and Kyocera Wireless.

Additionally, look out for the outcome of the talks between PCCW, the Hong Kong telecoms group, and China Netcom; and the possible merger of Tata Consultancy Services with other technology companies within the group.

Other international news included:

It seems HP and Microsoft are set to challenge Apple Computer in the digital music space.

Paul Booth, MD, Global Research Partners

The appointments of John Boruch as president and COO of Amkor Technology, Joseph Chappell as CEO of MetaMatrix, Bob Eberle as president of Bottomline Technologies, Joseph Lawler as president and CEO of CMGI, Peter Peterson as CEO of Innovative Software, John Vigouroux as chairman and CEO of Cranite Systems, Raj Vattikuti as president and CEO of Covansys and Carl Yankowski as chairman and CEO of Majesco;

The resignations of Martin Clague as president and CEO of Covansys, Bruce Freyman as president and COO of Amkor Technology, Greg McNulty as CEO of Cranite Systems (stays on as president) and Gregory Smith as chairman, president and CEO of Z-Tel; and

Job loss announcements from Cirrus Logic and EDB Business Partner ASA.

Excellent* figures from Ditech Comms (back in the black), Kanbay International, LTX (back in the black), OmniVision Technologies, Plato Learning, SemTech, Tundra Semiconductor (back in the black) and VimpelCom; and very good* numbers from Applied Signal Technology.

Good figures* were recorded by Catalyst Semiconductor, China Unicom, Conversion Services International, Formula Systems (back in the black), Lowrance Electronics, Micros Systems, SeaChange International and TCL International; and satisfactory* ones by Belgacom SA, Chunghwa Telecomms, CSK (back in the black), DataMirror Group, PCCW, Secured Digital Applications, Sigma Designs, Tech Data and Telekom Austria.

Mediocre* returns came from C&D Technologies, Hellenic Telecomms Organization SA, Key Tronic, OSI Systems, Pilat Technologies (but back in the black), SBE and Xeta Technologies; while very poor results* came from PinkRoccade NV.

Losses* were posted by ADC, Aegis Comms Group, Arel Comms & Software, ASAT Holdings, Celtron International, China Digital Wireless, CNE Group, Credence Systems, Datalex Solutions, Eircom, Greenland, Interactive Gaming, Leitch Technology, Maconomy, Opsware, OTI, Peerless Systems, PerfectData, PPOL, Qualstar, Sopheon, TippingPoint Technologies, TiVo, Ultimate Electronics, Unify, VA Software, ViryaNet, WorldTeq Group and X-FAB.

Other financial news included analyst upgrades for Applied Materials, Arrow Electronics, Celestica, eBay, EDS, FileNet, Informatica, Plexus, Progress Software, SemTech, Synaptics and Tech Data; analyst downgrades for ADC Telecom, Alltel, AMD, Artisan Components, Equifax, II-VI, Intellisync, LTX, Netegrity, NT&T, OSI Systems, PalmSource, SAP AG, Tessco Technologies and Zoran; a share offering from Western Wireless; and private funding was obtained for Cranite Systems, July Systems, Neah Power Systems, Savi Technology, Vernier Networks and Vonage Holdings.

There were share buy-back announcements from Catalyst Semiconductor, Matsushita Electric and Merge eFilm; negative results/profit warnings (often veiled) from Broadcom, Cirrus Logic and Flextronics International; a share split announcement from Yahoo Japan (2:1); a withdrawn IPO from Aspect Comms; an IPO filing from ArcSoft, a creator of digital media software; and successful IPOs from Ibas, a former subsidiary of Norman Defense Systems, on the Oslo Stock Exchange and Tata Consultancy Services in Mumbai.

Locally

AST (+12.7%)

Beget (-25%)

Casey (-30%)

Datatec (+10%)

Grintek (+11.6%)

MTN (+10.6%)

Sethold (+10%)

Square One (-11.8%)

Synergy (-20%)

Xantium (-13.8%)

Internationally

Blue Coat Systems (+31.8%)

Magic Software Enterprises (+30.7%)

Maisha (+29.6%)

Paxson Comms (-28.2%)

PalmSource (+28%)

Quiktrak (-44%)

Scipher (-33.3%)

SEMX (-28.6%)

Tarantella (+34.6%)

Telspec (+28.6%)

In terms of indices, the Nasdaq was up 1.3% and the JSE up 2.1% for the week.

It seems HP and Microsoft are set to challenge Apple Computer in the digital music space. HP is to unveil a version of Apple`s iPod under its own name, while Microsoft is about to launch its online music store that will compete directly with Apple`s iTunes.

Strangely, in this instance, HP and Microsoft will oppose each other in 'pushing` competing audio compression formats. It`s going to be a situation worth watching!

* NB

Guidelines for the categorisation of results are as follows and 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 in excess of 50%.

Very good: Both revenue and net income growth in excess of 25%.

Good: Both revenue and net income growth 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.