Still no targets in second BEE charter draft

Another Microsoft settlement, the 'suspension` of E&Y for six months and the acquisition of Group 1 Software by Pitney Bowes dominated the international world of IT and telecoms over the past two weeks.

At home, the second draft of the ICT BEE charter stole the ICT headline space over this holiday period.

* We saw satisfactory year-end numbers from Uniserv (no revenue figures and income marginally down);

* mediocre full-year numbers from Datacentrix (revenue static and earnings down);

* mediocre half-year figures from Set Point Technology Holdings (revenue up but attributable profit down);

* a half-year loss from Bryant Technology (revenue also down);

* interim figures (12 months as year-end changing) from Cyberhost (no meaningful comparisons);

* the de-listing of Edutech;

* a positive trading update from EOH;

* and a negative trading update from Prism Holdings.

Other local news included:

* The choice of Umthunzi Telecoms Consortium for the Government`s 5% stake in MTN Group;

* The appointments of Michael McCloskey as CEO of FrontRange Limited and Gerhard Uys as CEO of Datacentrix (was MD);

* The loss by Dimension Data of the distributorship of Software AG;

* The resignations of Dana Buys as CEO of FrontRange Limited (stays on as non-executive chairman) and Izane Cloete MD of Luso Computer Institute;

* The formal notice of the re-structuring of Comparex, its de-listing and re-listing under its new guise as Business Connexion Group;

* The publication of the second draft of the ICT Empowerment Charter, which still doesn`t contain any targets.

New local distributorships included that of Analyst Financials by Comparex Africa, FaceTime Comms` range of technologies by AmVia, Proofpoint message protection solutions by Condyn and SMC Networks` products by Storgate Africa. Additionally, Comparex is to market Finacle from India-based Infosys Technologies and iLayo Software Solutions is to sell and support software from Peregrine Systems.

Electronic Arts at No 10 was the highest rated technology company on the BusinessWeek 50 list.

Paul Booth, MD, Global Research Partners

Furthermore, look out for the 'buyer` for the local arm of Tiscali; the outcome of the proposed 'turnaround` strategy unveiled by the CEO of Sita; and the number of the redundancies from T-Systems that are likely to materialise over the coming weeks.

* The settlement by Microsoft of its lawsuit with InterTrust Technologies for $440m;

* The instigation by Maxim Integrated Products of a lawsuit against Qualcomm;

* A plan by ASA International to go private;

* The barring of Ernst & Young for six months to accept new corporate audit clients for failing to maintain its independence;

* And the name change of Cap Gemini Ernst & Young to Capgemini.

International strategic partnerships were announced between NetIQ and Infravio; and between Rocket Software OSS Unit and Unihub China Information Technology Co.

Additionally, look out for the acquisition of Kaz, Australia`s largest listed technology company, by Telstra; the fate of ePresence as their shareholders vote on a possible liquidation; and the possible involvement of CA`s chairman and CEO, Sunjay Kumar, in the accounting fraud investigation currently under way by US federal prosecutors.

Other international news included:

Other international news included the appointments of Scot Brunke as President and CFO of Aegis Comms Group, Paul Eibeler as President of Take-Two Interactive Software, William Green as CEO of Accenture, Michael McClostey as Chairman, President and CEO of FrontRange Solutions, Joseph McGrath as CEO of Unisys, John Perry as President and CEO of CardSystems, Kirby Pickle as CEO of DSL.net, David Srour as CEO of Epixtar, Jeong II Son as Chairman and CEO of LG Philips Displays, Dan Springer as CEO of Responsys and Harvey Wagner as acting President and CEO of Quovadx.

The resignations of Jeffrey Lapin CEO of Take-Two Interactive Software, Bob Mansfield as Chairman of Telstra, John Riccitiello President of Electronic Arts, Lorine Sweeney CEO of Quovadx and Lawrence Weinbach CEO of Unisys (stays on as chairman).

Job loss were announced by CAE, Dow Corning and NTL.

On the results front, we saw excellent* figures from AMD (back in the black), ESI (back in the black), Faro Technologies, Interplay Entertainment (back in the black), Lexar Media, Research in Motion, SanDisk, TelePlus (back in the black) and Yahoo!; and very good* numbers from Adtran, Apple, CDW, Cree, CyberSource (back in the black), Cypress Semiconductor (back in the black), Infosys Technologies, Linear Technology, Molex, Omnicell, PLX Technology (back in the black), SBS Technologies, Spantel Comms and Texas Instruments.

Good figures* were recorded by Aspect Comms, Avid technology, Catapult Comms, CEC Entertainment, CNET Networks (back in the black), DoubleClick, EMC, Excel Technology, Fairchild Semiconductor (back in the black), IBM, Intel, InterVoice (back in the black), Logitech International, MRO Software (back in the black), NMS Comms (back in the black), Novellus Systems, OSI, PMC-Sierra (back in the black), Rambus, SAIC, Secure Computing, SMSC and UTi Worldwide; and satisfactory* ones by CellStar (back in the black), Creative Computer Applications, Financial Models (back in the black), Gtech Holdings, InfoUSA, Lam Research (back in the black), LanVision Systems, Philips Electronics (back in the black), Siebel Systems, Spectrum Sciences (back in the black) and TSYS.

Mediocre* returns came from AlphaSmart, Audiovox, Ceridian, Digi International, Echelon, Mercury Computer Systems, Nassda, Nokia, Oce, Planar Systems, Shenandoah Telecomms, Stratos Global, Telenetics (but back in the black), Traffix, Unisys and Wipro; while very poor results* came from Iona Technologies.

Losses* came from ACT Teleconferencing, Allegiance Telecomms, BearingPoint, BestNet Comms, Brillian, Canterbury Consulting Group, CE Software, CNE Group, Concord Comms, Datalink, Digital Recorders, Eagle Broadband, eMagin, Entrada Networks, Extreme Networks, GigaMedia, HEI, Interland, International Electronics, IPIX, Kopin, Liberate Technologies, Metron, NCT Group, net.com, Netflix, Network-1, Optika, Photonics Products Group, Plumtree Software, Redback Networks, SmartServ, SofTech, Sopheon, Southwall Technologies, Storage Computer, Sun Microsystems, Superconductive Components, Tarantella, Teletouch, Teltronics, Tikcro Technologies, TMSSequoia, Transmeta, TranSwitch, Ultimate Electronics, Wegener and Workstream.

Other financial news included analyst upgrades for Clear Channel Comms, InfoSpace, Molex, NetIQ and Portal Software; analyst downgrades for Kopin, Nokia and PDI; private placement of shares by Applied Imaging, AXS-One, Ipix and Visonic; share offerings from California Micro Devices and Captiva; private funding obtained for Cedar Point Comms, Cortina Systems, eGain, Intellon, OutlookSoft and Starent Networks; share buy-back announcements from enherent, Logitech International and Samsung Electronics; a shareholders rights plan from Versata; positive results/profit warnings from Andrew, GSI Lumonics, Imation, Novatel Wireless, Paradyne Networks and TranSwitch; negative results/profit warnings (often veiled) from Brooktrout, Digital Impact, E.piphany, Endwave, Evolving Systems, Filtronic, Marimba, McData, Mobius Management Systems, Nokia, Primus Knowledge Solutions, Proxim, Seagate Technology, Take-Two Interactive Software and Vitria; share split announcements from ASA International (reverse 600:1 followed by a normal 600:1 split), Cognizant Technology (2:1) and Yahoo! (2:1); an IPO filing on Nasdaq by China-based Shanda Interactive; and planned IPOs on Nasdaq from GSI Technology, a developer of static RAM chips and NetLogic, in Switzerland by Austriamicrosystems AG, in Norway by Findexa and in London by Dealogic, a banking software provider. Additionally, the SEC has launched a formal probe into Nortel, following the latter`s re-statement of its results last month, as well as a widened probe into Quovadx; and CE Software is proceeding apace with its liquidation proposal.

Locally

Beget Holdings (-33.3%)
Cycad (-50%)
Global Technology (+50%)
Grintek (+13.1%)
Intervid (-21.6%)
Jasco (-8.9%)
Paracon (+8.3%)
Prism (-13.3%)
SEMX (+28%)
Trematon (-14.3%)
UCS (+9.9%)

Internationally

Adept Technology (+57.6%)
Brooktrout (-43.3%)
DA Consulting Group (+100%)
FiberMark (-83,8%)
Group 1 Software (+33.4%)
Lexar Media (-39.7%)
MDSI Mobile Data Systems (+64%)
Read-Rite (+45%)
Traffix (+32.9%)
Ultimate Electronics (-34.1%)

Finally, this is the time for the various ratings/listings from Business Week and Fortune. On the BusinessWeek 50 list, Electronic Arts at No 10 was the highest rated technology company, followed by eBay at No13, Symantec at No 15 and Dell at No16. Fortune`s 500 US listings saw IBM retaining its top spot from a technology perspective at No 9 (down from No 8) followed closely by HP at No 11 (was 14) and Verizon Comms at No 12 (was 10). AMD was the top technology newcomer while Computer Associates slipped out of the top 500.

* 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.