SNO members fail to agree

The $62.5bn hostile bid by Comcast for Disney, the $4 bn take-over of NetScreen Technologies by Juniper Networks, the $1.6bn STATS/ChipPAC acquisition, the DOJ recommendation re the Oracle/PeopleSoft bid and the move by Nokia to control Symbian dominated the international world of information technology and telecommunications last week; while at home the in-fighting among the members of the SNO preventing the creation of a shareholders agreement stole much of the local ICT headline space.

We saw an interim loss from CS Holdings (but revenue up a little) and a very poor quarter from Spescom Software, Spescom`s USA arm (revenue down and just back in the black).

Other local news included

* the announcement by the JSE surveillance team that it had dropped its probe into Datatec share dealings;

* a further delay in the MGX settlement scenario;

* the placement of Maseco Bytes IT Solutions in provisional liquidation;

* a proposed rights offer by Global Technology;

* the name change of Sagent SA to Alicornio Africa;

* the announcement by OneLogix that it intends to move to the alternative exchange, AltX;

* and the possible delay to the formation of the SNO because of internal manoeuvrings amongst its shareholders.

A new local distributorship included that of NetIQ`s Marshal products by Workgroup; whilst a new strategic business alliance was announced by Gijima Technologies with Gemplus.

Furthermore, on the local front look out for the buyer for Altech`s Africard business, with both Digital IQ and Labat Africa being potential suitors.

* We saw Nokia taking control of Symbian, the smart phone operating system, by acquiring Psion`s 31.1% shareholding for an estimated lb135.7m, thus giving it 63.3% of the company;

* the rejection by the board of Oracle`s new offer for PeopleSoft;

* the start of a series of planned 'spin-offs` by Alcatel;

* the DOJ recommendation against the Oracle bid for PeopleSoft;

* the sell-off of Smart Modular Technologies, a unit of Solectron, to three private investment groups;

* and the 'canning` of the proposed IPO by EDS`s UGS-PLM software group in favour of a private sale that is hoped will raise $1.2 billion.

International strategic partnerships were announced between Microsoft and Walt Disney to deliver entertainment to mobile phones, PCs and digital Televisions and between Verizon Wireless and Eastman Kodak.

Additionally, look out for Vodafone`s USA telecomms moves that could see them either bidding for AT&T Wireless or making an offer for the remaining shares in Verizon Comms that they do not already control and the buyer for SGI`s Alias software business.

Other international news included:

* the appointments of Mukesh Ambani as Chairman of Flag Telecom, Kailash Ambwani as CEO of FaceTime Comms, Patrick Gallagher as CEO of Flag Telecom, Andre Horn as Chairman of Remec, Mike O`Leary as CEO of Marlborough Stirling, Per-Olof Loof as Chairman of Datatec Systems, Krish Prabhu as President and CEO of Tellabs, Hector Ruiz as Chairman of AMD and Robert Shaner as interim CEO of Remec; the resignations of Jerry Sanders Chairman of AMD and Glen Vondrick CEO of FaceTime Comms; the retirements of John Rade President and CEO of AXS-One and Ronald Ragland Chairman and CEO of Remec; and job loss announcements from Firstwave (back in the black), Forgent Networks and Terra Lycos SA.

On the results front, we saw excellent* figures from Arel Comms & Software (back in the black), August Technology (back in the black), Cognizant Technology Solutions, Comcast (back in the black), IMSI (back in the black) and Vasco (back in the black); and very good* numbers from Analog Devices, Cedara Software, ClickSoftware (back in the black), CSC, DRS Technologies, Genus (back in the black), Metrologic, Raindance, SimpleTech, Telstra, Wanadoo, Western Wireless (back in the black) and YP.Net.

Good figures* were recorded by ADIC, Advanced Photonix, AMIS Holdings, Ansys, Dell, Garmin, Hauppauge Digital, IDX Systems (back in the black), MIND CTI, Navigant Consulting, Netgear, Par Technology, Stratos Global, SunGard, Vodavi Technology and Zebra Technologies; and satisfactory* ones by Aeterna (back in the black), Aramark, British Telecom, CTG, DTS, ePlus, France Telecom (back in the black), ICT Group (back in the black), Interactive Data, Intelligroup, Interactive Data, InterActiveCorp, LANDesk Software, Misys Healthcare Systems, Opsware, Pacific Internet, Register.com (back in the black), Sensytech, SYS Technologies (back in the black), Telenor (back in the black), TeliaSonera and Telus (back in the black).

Mediocre* returns came from APAC Customer Services, Applied Innovation, Checkpoint Systems, Ciber, Commonwealth Telephone Enterprises, Covansys, DG Systems, eSpeed, Fast Search & Transport, IIJ (but back in the black), InVision Technologies, Keane (but back in the black), Konica Minolta, London Bridge Software (but back in the black), Manhattan Associates, New Focus (but back in the black), Nvidia, PEC Solutions, Perot Systems, Philips Electronics (back in the black), Pomeroy IT Solutions, Rainbow Technologies, Rentrak (but back in the black), Royalblue, Sapiens (but back in the black), Speedcom Wireless (but back in the black), Syntel, Tele2, TenFold, Thomson SA, White Electronic Designs and WM-Data; whilst very poor results* came from En Pointe Technologies, GTSI, PC Mall, Spescom Software, TransNet and Vicor (but back in the black).

Losses* however came from ActivCard, Alphameric, APA Optics, Audible, Bookham Technology, Brocade Comms, Conceptus, Corvis, CorVu, Cox Comms, Datalink, Diagonal, DigitalNet, ECI Telecom, ECTel, Edgewater Technology, eMerge InterActive, Enterasys Networks, Equant, Firstwave Technologies, Furukowa Electric, Gemplus, Global Payment Technologies, Globecomm Systems, GRIC Comms, HPL Technologies, Hughes Electronics, Image Entertainment, Infowave, INSCI, Intec Telecom Systems, InterNAP Network Services, Intershop Comms AG, Island Pacific, Jacada, Jaco Electronics, LTX, Marconi, MetaSolv, Nashua, nCipher, Nera ASA, netGuru, Nikon, Novatel Wireless, Orbotech, Peco II, QRS, Quovadx, RadView Software, Raining Data, RDM, Ross Systems, Safeguard Scientifics, Sanchez Computer Associates, SatCon Technology, Softbank, Sycamore Networks, Synergx Systems, Tangram Enterprise Solutions, Technology Solutions, Tecnomatix, Telefonica Peru, Timeline, TMNG, Unova, Ultimate Software, V-One, Viacom, Visual Data, WatchGuard Technologies, Wavecom SA,

Other financial news included analyst upgrades for Analog Devices, InterActiveCorp, Motorola, Nvidia and Sanmina-SCI; analyst downgrades for Business Objects, Celestica, Genus and S1; a private placement of shares by Citadel Security Software; share offerings from C-COR, LTX and Mattson Technology; a share buy-back announcements from Borland; a positive results/profit warning from LTX; negative results/profit warnings (often veiled) from Bookham Technology, Forgent Networks, Remec and SteelCloud; share split announcements from Activision (3:2) and SS&C Technologies (3:2); planned IPOs on Nasdaq by Pny Technologies, a company that designs and markets a range of memory products and graphics cards and Sirf Technology, a maker of silicon chip software for GPS systems; a planned IPO in Oslo by Opera Software; and a very good IPO from Atheros Comms, a maker of chips used in wireless phones.

Internationally

Advanced Technology UK (+75%)
Com21 (-50%)
Entrada Networks (+34.7%)
Island Pacific (-36.2%)
QA (-35.2%)
Read-Rite (-50%)
SONICblue (+40%)
Tarantella (+36.1%)
Total Systems (+36.6%)
Ultrasis (+62.8%)

Locally

Beget (-14.3%)
Cycad (+50%)
Elexir (-25%)
EOH (+8.7%)
ERP.com (+6.6%)
Intervid (-10%)
Prism (-15.4%)
Reunert (+7.1%)
Sekunjalo (+6.3%)
Stella Vista (-40%)
Zaptronix (-25%).

In terms of indices, NASDAQ was down 0.5% and the JSE up 0.14% for the week.

It is many years since the list of planned IPOs has been as long as it is at present.

Paul Booth, MD, Global Research Partners

Finally, the evidence is mounting rapidly for ICT market`s recovery in 2004, if the number of IPOs and planned IPOs is taken into account. It is many years since the list of planned IPOs, not just in the USA and UK, has been as long as it is at present. It bodes well for the remainder of the year.

* N.B.

'Guidelines` for the categorisation of results is as follows and is 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 is in excess of 50%.

* Very Good: Both revenue and net income growth is in excess of 25%

* Good: Both revenue and net income growth is 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.