SNO saga marches on

Andrew`s acquisition of Allen Telecom for about $500 million and yet another take-over by Microsoft, dominated the international world of IT and telecommunications last week.

A study released last week on the national ability to benefit from ICT rated SA at number 36, with Finland in the top spot, followed by the US and Singapore.

Paul Booth, MD, Global Research Partners

At home, the second national telecoms operator issues, which continue with a difference of opinion now evident between communications minister Ivy Matsepe-Casaburri and the Independent Communications Authority of SA, and the issuing of yet another government computer tender that excludes local brands, filled much of the local ICT headline space last week.

we saw excellent interim numbers from CS Holdings (revenue and attributable profit both up significantly);

very good interim figures from ERP.com (revenue and attributable income well up);

good half-year results from Aplitec (revenue and net profit both up); and

the results of Prism`s right offer were announced, whereby bids for 99.6% of the offer were received.

[Local]

Other local news included:

the appointments of Lyman Smith as director, Services Group at HP South Africa and Marc Scheepbouwer as CEO of Global Technology Business Intelligence;

Investec Asset Management has taken a 10% stake in ERP.com;

Ianitor International changed its name to Beget Connect following its acquisition by Beget Holdings; and

two London-listed software houses, AFA Software and London Bridge Software, are to open a joint development office in Cape Town.

German prosecutors charged six people in connection with a probe into bonus payments made to top executives during Vodafone`s take-over of Mannesmann; and

the bankruptcy filing by Gerhard Schmid, the founder and former CEO of MobilCom AG.

[International]

Other international news included:

the appointments of Mr Balkanski as chairman of PMC-Sierra, Arthur Becker as CEO of NaviSite, Kathleen Brush as president and CEO of Rogue Wave Software, George D`Auteuil as CEO of IntelliCorp, Ralph Faison as president and CEO of Andrew, Katherine Hudson as chairman of Brady, Mark Hurd as CEO of NCR, Frank Jaenert as president and CEO of Brady, and Patricia Russo as chairman of Lucent Technologies;

the resignations of Eric Demarco as president and COO of Titan, John Floisand as chairman and CEO of Rogue Wave Software, Trish Gilligan as CEO of NaviSite, and Lars Nyberg as CEO of NCR (stays as non-executive chairman); and

job loss announcements from Agilent, Mapics, Micron Technology, National Semiconductor and Reuters.

We saw excellent* figures from Analex, Interlott Technologies, Landacorp (back in the black), OmniVision and SBE (back in the black); and very good* numbers from Capita Group, CorVu, EPIQ Systems, INSCI, Netsmart Technologies, NovAtel, SunGard, Veridian (back in the black) and Xenos Group.

Good figures* were recorded by Anteon International (back in the black), CRC Group, Daktronics (back in the black), Nextel Comms (back in the black), Primus Telecom, Rainbow Technologies, Stratasys, Synopsys and XETA Technologies.

Satisfactory* figures were posted by American Software, AMS, Applied Signal Technology, Arrow Electronics, AtosOrigin SA, Barak (back in the black), BEA Systems, Bell Microproducts, Catalyst Semiconductor, Data I/O (back in the black), Dicom Group, Elite Information Group, EMS Technologies, Inter-Tel, JD Edwards (back in the black), Matsushita Electrical (back in the black), Pegasystems, Presstek (back in the black), Primus Telecomms Canada,

Mediocre* returns came from Anacomp, CDI (but back in the black), CNT, Cobra Electronics, Concord EFS, Docucorp International, Enterasys Networks, Hexaware (but back in the black), Intelsat, Logility, Merisel, MSC.Software, Pinnacle Data Systems (but back in the black), Qwest Comms (but back in the black), Scala Business Solutions NV, SCB Computer Technology, Telefonica Moviles SA, THQ, TietoEnator, Vertis (but back in the black) and Yak Comms.

Very poor results* were posted by Inficon Holding AG, Neometrix (but back in the black), Tundra Semiconductor and Verso Technologies (but back in the black).

Losses* came from ADC Telecom, Agile Software, Agilent Technologies, AM Comms, Amtech Systems, Analytical Surveys, Ansoft, ARI Network Services, ASM International NV, Blue Coat Systems, Catalyst International. CE Software, Ciena, CommScope, Credence, CyberOptics, Daleen Technologies, Datalex, Dataram, Datatrak International, Day Software, Diagonal, Ditech Comms, Dotronix, Emtec, Euronet Worldwide, Exabyte, Framfab AB, Glenayre Technologies, Hutchison Telecom, Ibis Technology, ICOS Vision Systems, Ingram Micro, Insightful, Internet capital Group, ITXC, Lexent, Linmor, McLeod USA, Medialab, Microtune, Mycom Group, Nanophase Technologies, NexPrise, Nexus Telocation Systems, Novo Networks, Option International NV, Photronics, Portal Software, PPT Vision, Pumatech, RDM, Reuters, Robotic Vision Systems, SCM Microsystems, Sipex, Socket Comms, Telaxis Comms, VA Software, Valassis Comms, Viisage Technology, Voxware, WorldQuest Networks,

Other financial news included share buy-back announcements from Ciber, Matsushita Electric and Texas Instruments; employee stock option exchange programmes from Openwave and Selectica; and results/profit warnings from BellSouth, CRC Group, Diagonal, Intershop Comms AG, JD Edwards, Kyocera, Midway Games, PCCW, Reuters and Telstra.

There were also share split announcements from Agere Systems (reverse), eKnowledge Group (reverse), Millicom (reverse) and Yahoo Japan; and a rights issue announcement from The Innovation Group.

Locally

AST (+35.7%)

Beget Holdings (-37.5%)

CompuClearing (-17.7%)

Elexir (-20%)

ERP.com (+17.8%)

Labat Africa (-16.3%)

Maxtec (-60%)

MGX (-17.8%)

Prism (-14.3%)

Stella Vista (+100%)

Internationally

Allegiance Telecom (+32.4%)

Bitstream (+30%)

Covad Comms (-36.3%)

DA Consulting Group (+40%)

Elcom International (+77.8%)

ITXC (-26.7%)

Micro Component Technology (+35.9%)

Merisel (+44.4%)

Vasco Data Security International (+43.3%)

Winland Electronics (+28.1%)

As AST`s share price continues to slide, I am sure there are some predators watching this situation. Last week the shares hit a new low of 10c and at that price, AST`s market capitalisation is only some R67 million, a snip for the right company. Could Bytes Technology Group be one of the interested parties? Certainly a space worth watching!

Additionally, a study released last week on the national ability to benefit from ICT rated SA at number 36, with Finland in the top spot, followed by the US and Singapore.

* N.B.

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

Good: Both revenue and net income growth are 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.