Squabbles at Comparex

The continued Microsoft standoff and the fate of Marconi dominated the international world of IT and telecommunications last week.

Of the top 20 companies, only seven were US-based, a significant change from previous years.

Paul Booth, MD, Global Research Partners

At home, the boardroom "squabbles" at Comparex and the latest in the DataMirror/Idion affair stole much of the local IT/telecoms headline space.

* we saw good full-year numbers from Johnnic Comms (revenue up and back in the black when pro forma-based); and

* the suspension of Powertech`s shares prior to its de-listing following its acquisition by Altron.

* Additionally, the Connection Group is planning to move to the retail sector of the JSE.

[Local]

Other local news included:

* Telkom named Grintek Telecom as its "Supplier of the Year";

* the closure of the DataMirror offer for Idion shares;

* the request by Comparex`s institutional investors for the resignations of the non-executive directors;

* the end of the exclusivity deal between Software AG and Dimension Data;

* Vodacom`s announcement that it hopes to make cellular data services, with applications including colour picture messaging, available in September/October, and subsequent to its launch of GPRS;

* the termination of the proposed take-over of the IT interests of Labat Africa by Altech Data;

* the naming of HP as the worldwide technology partner for the Johannesburg Summit 2002; and

* the withdrawal from Africa (but not SA) of direct representation by Fujitsu.

* we saw the name changes of Computone to Symbiat and PCS Wireless to Metatron Technologies;

* a continued standoff between Microsoft and the "states" still opposing the Microsoft ruling;

* the "furloughing" of some 4 000 contractors by HP, probably prior to terminating their services;

* the removal of Conexant Systems from the S&P 500; and

* the news that Microsoft is now rated as the largest company by market value, having overtaken GE for the number one position.

Additionally, look out for the target of STMicroelectronics` acquisition drive; the outcome of the talks between Yahoo and Sonera`s wireless portal, Zed; the fate of Adelphia Comms following its interest payment defaults; the fate of Marconi and its continued outstanding debt resolution; the fate of Italian mobile company Blu SpA, which needs a buyer by 31 July or will go into liquidation; and the fate of Groupe Bull SA, after its planned recapitalisation that is likely to be a precursor to its sale.

[International]

Other international news included:

* the appointments of Ken Brizel as president and CEO of LightPath Technologies, J Kim Fennell as president and CEO of Pinnacle Systems, Thorsten Grenz as chairman of Mobilcom AG, Woodson Hobbs as president and CEO of Pumatech, Richard Notebaert as chairman and CEO of Qwest Comms, Kathleen Perone as president and CEO of Focal Comms, Doug Roberts as CEO of Avolent, and Ben Scott as chairman of Navini Networks;

* the resignations of David Haxby, chairman of Nettec, Joseph Nacchio as CEO of Qwest Comms, Paul Rampel as president of Level 8 Systems, Brad Rowe, president and CEO of Pumatech, and Gerhard Schmid as chairman of Mobilcom AG; and

* job loss announcements from Amdocs, IBM, Peregrine Systems and Sycamore Networks.

Good numbers were recorded by Circuit City and Detica; and satisfactory ones by California Amplifier, Cognos (back in the black), Gtech, Northgate Information Solutions and Progress Software.

Mediocre returns came from HEI (but back in the black), Jabil Circuit, Oracle, SCB Computer Technology (but back in the black), Spectrum Control, Tektronix and Verity; while very poor results came from Financial Models (but back in the black - just) and Standard Microsystems (but back in the black).

Losses were posted by Amdocs, ATI, ATSI Comms, Business Systems Group Holdings, Cell Tech International, Covista Comms, FirePond, FSI International, IndigoVision Group, Maxtor, Methode Electronics, NewMedia Spark, OneClickHR, Red Hat, Remec, Riverstone Networks, SEAGULL, Solectron, Stratos Lightwave, Tanning Technology, Tibco Software and XKO Group.

Other financial news included profit warnings from AMD, Amdocs, Ameritrade, Apple, Ciena, Intuit, Nokia, Oak Technology, Tektronix and Terayon Comms Systems; a share split announcement from MB Software; a delayed IPO from Inmarsat; and a poor IPO from PrintCafe Software (printing software). Additionally, XO Comms has filed for a voluntary petition under Chapter 11 in order for it to undertake a restructuring of its balance sheet and VersaTel Telecom NV has done likewise.

Furthermore, the shares of AIT Group were suspended on the London Stock Exchange, while the company looks for a suitable buyer; Google has again denied that it is intending an early IPO; FirePond has re-stated its results for the last two quarters; and Chunghwa Telecom, Taiwan`s state-owned telephony company, again delayed the auction to sell a 5.7% stake.

Locally

Cape Empowerment Trust (-42.9%)
Dectronic (+25%)
DNA (+24.3%)
Elexir (+33.3%)
Explorer (-16.7%)
Infowave (+50%)
Netactive (+19%)
Paracon (-13.8%)
Sethold (-17.2%)
Stella Vista (-20%)

Internationally

Allegiance Telecom (+70.3%)
Amdocs (-46.6%)
ARM Holdings (-37%)
Dobson Comms (-34.6%)
International Rectifier (-36.4%)
Internet America (+34.6%)
InterVoice-Brite (+59.9%)
PC Connection (-35.5%)
QRS (-42.8%)
Rambus (-38.4%)
SBA Comms (+59.3%)

It`s the "lists" time of year again, with Fortune magazine publishing its "cool technology" companies findings and Business Week issuing its annual Information Technology 100.

The Fortune list includes Pyra Labs with its Blogging Software and FHP with its Wireless LANs.

In the Business Week listings, IBM was top of the "biggest" by sales, Wavecom the fastest growing, Oracle the most profitable, and Software Spectrum the best returns company.

In the 100 listings, Samsung Electronics was number one followed by Quanta Computer of Taiwan, Hon Hai Precision Industries of Taiwan, KT Freetel of Korea and Dell Computer. Of the top 20 companies, only seven were US-based, a significant change from previous years.

Finally, I am currently in New York on business and therefore my next column will appear on 8 July, although there is likely to be a report on TECHXNY, which I am including in my visit.