Softline moves, Datacentrix results

The potential sell-off of Baan, and Grundig`s bankruptcy filing dominated the international world of IT and telecommunications last week.

WorldCom announced that it has won strong approval from its creditors for its bankruptcy reorganisation plan, which means it could emerge from Chapter 11 as early as September.

Paul Booth, MD, Global Research Partners

At home, the Softline news and the good results from Datacentrix stole much of the limited ICT local headline space during a shortened week.

* we saw very good annual results from Datacentrix (revenue and earnings both well up);

* a full-year loss by CCI Holdings (ex-Y2KTec) but revenue up;

* mediocre interims from Set Point Technology Holdings (revenue up but earnings well down);

* the annotation of the shares of DNA and MGX, following their failure to submit their interim results timeously; and

* an auditor`s opinion that casts doubt on CCI Holding`s ability to continue as an on-going concern.

Other local news included:

* Sahara`s possible acquisition of Arrow Altech Distribution`s Computer Products Group;

* the delay, by two months, of the submission date for the rural telecoms licence proposals;

* the selection of SA-based Econet Wireless Group and Telsar Solutions/Telecel International as two of the five selected bidders for the third Kenyan mobile licence;

* a deal that sees Integrated Card Technology becoming a subsidiary of Namitech and

* German-based Giesecke & Devrient becoming a shareholder in Namitech as a direct result of the new arrangement;

* the appointment of Becky Mosehle as GM for AT&T Global Network Services SA;

* the emergence of a new consortium as one of the second national telecoms operator bidders that involves PCA, MKMVA and UK-based Gateway; and

* Softline intends to de-list from the JSE following a consortium buy-out involving senior management and Investec Bank.

* New local distributorships included that of Centratel for the IP communications solutions of Mitel Networks in sub-Saharan Africa.

* WorldCom announced that it has won strong approval from its creditors for its bankruptcy reorganisation plan, which means it could emerge from Chapter 11 as early as September; and

* Grundig filed for bankruptcy following the breakdown of rescue talks with foreign investors.

Additionally, look out for the fate of Baan, currently part of UK-based Invensys Group, which is now seeking to sell the software company: maybe SSA Global Technologies will buy it; and also the fate of Knowledge Support Systems Group, which is also up for sale.

Other international news included:

* the appointments of Chuck Bay as chairman of Kana Software and Mack Traynor as president and CEO of HEI;

* the retirements of Carmen Lloyd as president and CEO of Stratos Global, and Jay Wood, chairman of Kana Software; and

* job loss announcements from Corning, P-Com and Tellabs.

We saw excellent* figures from Adtegrity.com (back in the black), Cree (back in the black), Lexar Media (back in the black), SanDisk and UTStarcom.

Very good* numbers were reported by Boston Comms Group (back in the black), Cognex (back in the black), Excel, Mercury Computer Systems, Network Equipment Technologies (back in the black), Packeteer, Secure Computing (back in the black), Silicon Image (back in the black), SupportSoft (back in the black) and WebEx.

Good figures* were recorded by Alliance Data Systems, Avid, Avocent, Data I/O (back in the black), Epic Data (back in the black), IBM, Itron (back in the black), Ixia, Linear Technology, Mercury Interactive, Planar Systems, Rogers Comms (back in the black), Rogers Wireless (back in the black), Scientific-Atlanta, SCT, Shenandoah Telecomms, Softscape, Stratos Global, Syntel, Texas Instruments (back in the black), TSYS, Xilinx and Zebra Technologies.

Satisfactory* results were posted by Accenture, Adtran, Amphenol, CDW Computer Centers, Ceridian, Check Point Software Technologies, Concerto Software (back in the black), Concord Comms, Digi International (back in the black), E*Trade Group (back in the black), Electronics For Imaging, EMC (back in the black), Harris, Ikonics, Intel, Internet Security Systems, Microsoft, Molex, Monolithic Systems Technology, Motorola (back in the black), Nokia, Pervasive Software, Renaissance Learning, SAIC, SAP, SS&C Technologies, Troy Group (back in the black), Unisys and Wipro.

Mediocre* returns came from ADP, Amdocs, ARM Holdings, Aspect Comms, Catapult Comms, DoubleClick (back in the black), Honeywell, infoUSA, Iomega, ITG, Lam Research, LG Electronics, MPSI Systems, National Instruments, Office Depot, Pitney Bowes, Rambus, Samsung Electronics, Seagate Technology, StorageNetworks (but back in the black), Sun Microsystems (back in the black), Sybase (but back in the black), Teletouch (but back in the black), Tollgrade Comms and Vanco.

Very poor results* were announced by Apple, Celestica, Computer Task Group, ImageMax, Latitude Comms and RADVision.

Losses* were posted by Advent Software, Aegis Comms, AMD, Anadigics, Andrew, Applied Innovation, ASML, Atmel, Avery Comms, Billserv, Broadcom, Brooktrout, Cadence Design Systems, Canterbury Consulting Group, CellStar, Chartered Semiconductor, Conexant Systems, CyberSource, Cypress Semiconductor, DAPC Technologies, Datalink, Digital Lightwave, Documentum, DuPont Photomasks, eB2B Commerce, Evans & Sutherland, Fairchild Semiconductor, Gateway, Gilat Satellite Networks, Global Network, Handspring, HEI, Helix, Hifn, Hughes Electronics, IDC, ImageWare Systems, iManage, Innovex, Insignia Systems, Interphase, Interwoven, Iona Technologies, Jaco Electronics, Keithley Instruments, KVH Industries, Leap Wireless International, Loudeye, M-Systems, Made2Mange Systems, MIPS Technologies, MKS Instruments, MRO Software, Mycom, Netflix, NTELOS, Nuwave Technologies, Optika, Philips Electronics NV, Phoenix Technologies, Photon Dynamics, PLX Technology, PMC-Sierra, Polycom, Proxim, PTC, RadiSys, Redback Networks, Reptron Electronics, RiT Technologies, SofTech, Storage Area Networks, Stronghold Technologies, Tellabs, Teradyne, Timberline, TMS, Transmeta, TranSwitch, Triad Group, Turnstone Systems, Vicor, ViewCast, VINA Technologies, Virage Logic, Visual Networks, World Wireless Comms, Xicor and Zi.

Other financial news included share buy-back announcements from ESS Technology and Proginet; results/profit warnings from AT&T Wireless, Celestica, CSG Systems, Intel, Magnetek, MmO2, SBC Comms and Telstra; and a planned IPO for Schlumberger`s smart card entity later this year. Additionally, Leap Wireless International has entered Chapter11 and US Dataworks is to restate its financial figures for 2001, 2002 and the first three quarters of 2003.

Locally

AST (-20%)

Cycad (-50%)

Elexir (-33.3%)

Faritec (-15.6%)

Global Technology (-16.7%)

Infoware (+13.6%)

Prism (+25%)

Sekunjalo (+12.9%)

Stella Vista (-50%)

Y3K (+50%)

Internationally

Adept Technology (-37%)

Arel Comms & Software (+100%)

Computer Horizons (+47.3%)

DA Consulting Group (+41.2%)

DDi (-50%)

Digital Lightwave (-38.7%)

Leap Wireless (-52.1%)

Madge Networks (-80%)

On2 Technologies (+36.4%)

Portal Software (+34.3%)

* NB

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.