SNO movement

The fate of Cable & Wireless, the battle for Cegetel SA by Vodafone and Vivendi, and the 'conditionally approved` federal settlement by the judge in the long-running anti-trust case between the US Justice Department and Microsoft dominated the international world of IT and telecommunications last week.

The results of the 'SA 2002 Best Company to Work For` includes three ICT companies in the top 20: Sabinet Online at 10, Software Futures at 13 and SAP Africa at 18.

Paul Booth, MD, Global Research Partners

At home, the various Comparex issues including the Europe management buyout (MBO), and the applications for the majority stake in the second national telecoms operator (SNO) stole much of the local ICT headline space.

* we saw a full-year loss from Bryant (revenue also down);

* an interim loss from OSI (revenue also slightly down);

* the end of trade for Casey shares prior to a re-capitalisation; and

* the official de-listing of the shares of MB Technologies.

[Local]

Other local news included:

* the approval from shareholders for the Comparex Europe MBO at a slightly higher price than expected of 12.7 million euros, a deal which also sees Comparex getting a 35% stake in Mosaic Software;

* Spescom`s empowerment initiative that sees its Cisco Systems network business going to Sourcecom in a new partnership arrangement;

* an alternative, but better offer for Crux from the take-over consortium, that would see the company de-listed from the JSE;

* the announcement of a probe into the trading of MB Technologies` shares earlier this year;

* the appointment by Swedish-based Teligent of Telsar Africa as its sole distributor for SA and sub-Saharan Africa; and

* the closure of the SNO majority share bid, for which there were two submissions. Additionally, Nexus has been confirmed by government as the empowerment partner for the SNO.

The two SNO bids have come from Goldleaf Trading, a consortium that includes Gateway Comms, Premier Contract Agency and Telecom Africa International, and that also has a memorandum of understanding with British Telecom, MTN and Siemens; and the second from Optus Telecoms, a consortium that includes the Friedland family, Lotsons, Orient China Investments and Shanghai Telecoms (part of China Telecom).

* we saw the name changes of IT Technology to Avenue Group and ScreamingMedia to Pinnacor;

* the creation of China Telecom (USA), the first Chinese telecoms company to establish a direct presence in the US;

* the rejection by Vivendi of Vodafone`s offer for its shares (44%) of Cegetel SA; and

* the news that IBM is looking to spend $2 billion to $3 billion a year in acquisitions over the next few years.

Additionally, look out for the possible abandonment by Cable & Wireless of its global operation and its Web hosting operations, which it created through a series of 'expensive` acquisitions. If this happens, there would be little left of Cable & Wireless, since it had previously sold-off most of its traditional telecoms business, and thus, would be unlikely to survive as an independent company. Furthermore, look out for the fate of Telewest which has fallen into default on its credit facilities but is expecting to close a restructuring deal that would include a debt-for-equity swap that would eliminate a significant part of its $5 billion+ debt.

[International]

Other international news included:

* the appointments of John Andrews as president and CEO of Giga Information Group, Malcolm Edwards as CEO of MacDonald Dettwiler Hub, Jonathan Morgan as interim CEO of First Virtual Comms, Sam Palmisano as chairman of IBM (as from 1 January), Robert Polychron as president of Versatile Mobile Systems, Dennis Sheehan as CEO of Bisys (as from 1 January), Jeffrey Storey as CEO of WilTel Comms Group, John Vigouroux as president and CEO of Valicert, John Weston as chairman of Spirent and Rhett Williams as CEO of VIA NET.WORKS;

* the resignations of Yosi Amram as president and CEO of ValiCert, Killko Caballero as CEO of First Virtual Comms, Erwin K"onigs as CEO of Software AG and Lynn Magnum as CEO of Bisys (as from 31 December, but remains as chairman);

* the retirement of Lou Gerstner as chairman of IBM (as from 31 December); and

* job loss announcements from ADC Telecomms, Alcatel SA, Belden, Broadwing, Corning, Earthlink, EDS, eXcelon, Hitachi, LTX, Micromuse, Nortel Networks, SAP SI and Workgroup Technology.

We saw excellent* figures from Innovative Software Technologies, O2Micro, Neoware and TDK Mediactive (back in the black).

Good numbers* were recorded by Ablest (back in the black), Activision, Allen Telecom (back in the black), Anteon International, BearingPoint (KPMG Consulting) (back in the black), Concord EFS, Concurrent Computer (back in the black), Data Connection, Entercom Comms. EuroTel Bratislava (back in the black), Evolving Systems (back in the black), FEI Company, Garmin, Group 1 Software, Hon Hai Precision, Image Sensing Systems (back in the black), Integrated Circuit Systems, Intrado (back in the black), j2 Global (back in the black), Maxim Integrated Products, MDSI Mobile Data Systems, Optelecom, Partner Comms (back in the black), Perot Systems (back in the black), Pinnacor (back in the black), Qsound Labs (back in the black), Quality Systems, ScanSoft, Sharp, Storage Engines (back in the black), Stratasys, SureWest Comms, TDK, TeleTech, Tyler Technologies, Virage Logic, Vishay Intertechnology (back in the black), Vitrix and Wanadoo SA.

Satisfactory* figures were posted by APC, AXS-One, Banta, Canon, Catalyst International (back in the black), Dacom (back in the black), Equant, France Telecom, Hitachi (back in the black), ImageMax (back in the black-just), Intergraph, John H Harland, Kronos, Matsushita (back in the black), Micros Systems, Mitsubishi Electric, Nam Tai Electronics, Nice Systems (back in the black), Orange, Ptek Holdings (back in the black), Ross Systems, Sanchez Computer Associates and Sony (back in the black).

Mediocre* returns came from Acer (but back in the black), APAC Customer Services, Au Optronics, Belden, Bell Canada, CAP Gemini SA, Catapult Comms, CSG International, Danka Business Systems (but back in the black), EDS, Elite Information Group, FiberMark (but back in the black), FlexiInternational Software (but back in the black), Gartner (but back in the black), Hector Comms, IBSS (but back in the black), Infinium Software, IXYS (but back in the black), Keithley Instruments, Kyocera, Macrovision, Mapics (but back in the black), MapInfo (back in the black-just), Mentor Graphics, Merisel, NDS Group, NIC (but back in the black), Opnet Technologies, Pegasus Solutions (but back in the black), QRS, RCM Technologies, SAP SI, Sanyo Electric, Software AG, United Microelectronics and Zoom Technologies (back in the black - just).

Very poor results* came from Broadwing (but back in the black), CoorsTek, ON Technology, Sitel, Somera Comms, Telular, VTEL (but back in the black) and Winland Electronics (back in the black - just).

Losses* were posted by 3DO Company, 8 x 8, Acterna, Airspan Networks, Alcatel, Alcatel Optronics, Amkor, AML Comms, Analysts International, APA Optics, Artesyn Technologies, ASE Test, Axeda Systems, Bitstream, Bookham Technology, Bottomline Technologies, Captiva, ChipPAC, Clarus, Click Commerce, Computer Horizons, Corning, Cox Comms, Cysive, DDi, DiamondCluster International, Earthlink, eGain, Euronet Worldwide, Evolve Software, eXcelon, Exult, F5 Networks, Fisher Comms, FreeMarkets, Fujitsu, Gemplus, Genus, Glenayre Technologies, GlobalspanVirata, GSI Lumonics, HyperFeed Technologies, Icon Medialab International AB, IDSystems, IIS Intelligent Information Systems, InforMax, Ingram Micro, Innotrac, Input/Output, Insightful, InterNAP, Intershop Comms AG, iPIX, ISSI, Jaco Electronics, JNI, Keynote Systems, LanOptics, Legato Systems, Level 3 Comms, LightPath Technologies, Lionbridge, LogicVision, Loudeye, M-Wave, Madison River Comms, MEMC Electronic Materials, Mercator, Micromuse, Microtune, MRO Software, MTS Systems, NaviSite, Nera ASA, NetScreen Technologies, Nextel Partners, Netzee, Novatel Wireless, NTN Comms, Numerex, Onyx Software, P-Com, PCD, Perficient, Perle Systems, Primus Knowledge Solutions, ProBusiness, PSi Technologies, Quantum, Qwest Comms, Radyne ComStream, RadView, Rainmaker, Read-Rite, Resonate, Rudolph Technologies, S1, Sanmina-SCI, Sapiens International, SAVVIS, SEEC, Segue Software, Sento, Siliconix, SimpleTech, Skyworks Solutions, SoftNet Systems, Spectrian, SpeechWorks International, SPSS, STATS, Sykes Enterprises, Symmetricom, SynQuest, Syzygy AG, Tarantella, TCSI, Telenetics, Telenor, Tellium, Terayon, Time Warner Telecom, Titan, Tower Semiconductor, TransAct Technologies, Tricom, Tut Systems, Tvia, UbiquiTel, V-ONE, ValiCert, Vega Group Plc., Vertis, Viewpoint, Viisage, Winbond Electronics, Wire One, WorldGate, Ziff Davis Holdings, Zix and Zygo.

Other financial news included share buy-back announcements from Matsushita Electric, Pinnacor, SEEC, VitalWorks and Vixel; profit warnings from BellSouth, Brocade Comms, Concurrent Computer, Daisytek, Earthlink, FEI, France Telecom, Fujitsu, Gemplus, Hitachi, Level 3 Comms, LTX, Navistar, Orange, ProMOS, Qwest Comms, Terayon Comms, United Microelectronics and ValiCert; and a share split announcement from Intershop Comms AG.

Additionally, Qwest Comms is to re-state its 2000 and 2001 financials; and Lucent Technologies may face SEC charges.

Locally

Cape Empowerment Trust (+66.7%)
Casey (-100% - awaiting re-capitalisation)
Digicor (-19.2%)
Dimension Data (+10.9%)
Faritec (-18.2%)
Infowave (+37.9%)
Pinnacle (+25%)
Vesta (+150%)

Internationally

Aspen Technology (+53.3%)
MSC.Software (+59.4%)
Redback Networks (+72.5%)
RCN (+66.7%)
Riverstone Networks (+75.3%)
Robocom Systems International (-53.3%)
Spirent (+70.2%)
Stratex Networks (+65.2%)
Telefonica de Argentina (+51.9%)
Wind River Systems (+55.4%)

The results of the 'SA 2002 Best Company to Work For` includes three ICT companies in the top 20: Sabinet Online at 10, Software Futures at 13 and SAP Africa at 18.

* NB

'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%.

* 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.