Sun speculation abounds

The Sun Microsystems speculation and the losses at EDS dominated the international world of IT and telecommunications during the last two weeks.

At home, Altech`s acquisition of Namitech, the bidders for the second national telecoms licence and the extremely heavy losses at MGX stole much of the local ICT headline space.

we saw good year-end numbers from Altech (revenue up and earnings significantly up);

satisfactory annual figures from InfoWave (revenue and profit both up);

mediocre year-end results from Bytes Technology Group (revenue up, but earnings well down);

satisfactory interim numbers from Reunert (revenue and earnings both up);

interim losses from DNA (but revenue up) and MGX (revenue also down); and

a profit warning from Intervid.

Other local news included:

* a share re-purchase announcement from CCN (ex-NetActive);

* the appointments of Kelvin Reynolds as MD of Oracle SA, Louis Seyffert as SA country manager for Legato Systems and Mark Taylor as caretaker CEO of Intervid;

* the reconstitution of the EC-Hold board of directors;

* the speculation that Datatec may be preparing to sell-off some of its key assets;

* SmartForce Africa has changed its name to Laragh Skills; and

* the launch of Phoenix Software, a new software distribution and publishing company.

Furthermore, Sekunjalo Investments has won the Top BEE Market Performer Award for 2003 and there is a chance that Rubico may have to be put into liquidation.

There was also the announcement that five consortiums have submitted their intention to bid for the second national telecoms licence. The five bidders include: CommuniTel (includes the former Goldleaf consortium), Detecon International//T-Systems, TeleAccess Investments, Two Consortium (includes Telenor), and another from China, as yet unnamed.

A new strategic business alliance was announced by NamITech and US-based Stratus Technologies.

* we saw Veritas Software`s announcement that it will attempt to become a leader in utility computing;

* Dell plans to drop 'Computer` from its corporate name;

* SK Telecom`s buy-back of its shares held by ailing SK Global;

* Basic Technologies changed its name to StarCom Wireless Networks and Infogrames became Atari; and

* Telekom Austria sold off its shares in Herold Business Data AG.

A new strategic business alliance was announced by NamITech and US-based Stratus Technologies.

Paul Booth, MD, Global Research Partners

Additionally, look out for the fate of Mosel Vitelic, the Taiwanese memory chip manufacturer, which has failed to submit financial statements and defaulted on bond repayments; and the future of Promos and Elpida, following the signing of a memorandum of understanding between the two companies.

There has also been much speculation circulating about Sun Microsystems and its possible acquisition by a major company such as Dell, HP or IBM.

Other international news included:

* the appointments of Lawrence Barker as president and CEO of Visual Networks, Dale Booth as interim president and CEO of Daisytek, Loren Burnett as president and CEO of Celcorp, Alain Couder as president and CEO of Confluent Software, John Dyson as CEO of Pace Micro, Scott Mac Caughern as chairman and interim CEO of Amnis Systems, Frank Plastina as president and CEO of Proxim, John Simmonds as CEO of Wireless Age, Michael Splinter as CEO of Applied Materials, Michael Weiss as CEO of StreamCast Networks and Martin Yudkovitz as president of TiVo;

* the resignations of Stephen Butler as CEO of Segue Software, Jim Morgan as CEO of Applied Materials (remains as chairman) and James Powell as president and CEO of Daisytek;

* the retirement of Linus Cheung, deputy chairman of PCCW;

* the death of Wesley Vance, COO of Diebold;

* and job loss announcements from Daisytek, Descartes Systems, Ericsson, Getronics, IBM, Infineon, Merkantildata ASA, Overture Services, PeopleSoft and Sprint.

We saw excellent* figures from Evolving Systems (back in the black), Epixtar (back in the black) and Genus (back in the black); and very good* numbers from AMI Semiconductor (back in the black), CGI Group, ECTel (back in the black), EPIQ Systems, iPIX, ManTech International, MicroStrategy, Netsmart Technologies, Qlogic and, SurfControl.

Good figures* were recorded by Aladdin Knowledge Systems (back in the black), Allin (back in the black), Anteon International, Best Software, City Telecom (Hong Kong), Comms Systems, CompuDyne, Cray, CSG Systems International, EchoStar Comms (back in the black), Genesis Microchip, Global Imaging Systems, Intelligent Environments, Intergraph, Landacorp (back in the black), LookSmart (back in the black), MEMC (back in the black), NTT DoCoMo (back in the black), Radware (back in the black), Sanchez Computer Associates, ScanSoft, SI International, Sierra Systems, Singapore Telecomms, SRA International, Telecom New Zealand, Telenor, Titan (back in the black), Trimble (back in the black), Tyler Technologies, UbiquiTel (back in the black), Univision Comms, Vishay Intertechnology and Vocus.

Satisfactory* figures were posted by Anixter International, Ansys, AXS-One, Banta, BCE, Captiva Software, CBIZ (back in the black), Cisco, Citizens Comms, DG Systems (back in the black), eON Comms (back in the black), Epcos AG, Equant, FEI, Forrester Research (back in the black), France Telecom, GCI, IEC Electronics (back in the black), Imagistics International, Ingram Micro (back in the black), Macromedia (back in the black), Magic Software, Micros, NII Holdings, Oberthur Card Systems, Orange, Orbit International, Pegasystems, Primus Telecom, Sage Group Plc., Scan-Optics, SK Telecom, Sourcecorp, StarTek, Supertex, Systemax (back in the black), Telus (back in the black), Tessco, Tucows, Veritas, Wanadoo and Wireless Facilities.

Mediocre* returns came from ADS Financial Services Solutions, APAC Customer Services, Arch Wireless, BearingPoint, Black Box, Broadwing (but back in the black), Cap Gemini Ernst & Young, Czech Telecom, Compuware, Creative Technology, EasyLink (but back in the black), eGain Comms (but back in the black), Electronic Arts, IDX Systems, InterCept, Interlott Technologies, Internet America (but back in the black), KTF, LaBarge, Maximus, Metatec, Morse, Nera ASA (but back in the black), Nvidia, Pixar, Portugal Telecom, Primus telecom Canada, QRS (but back in the black), RCM Technologies, Rogue Wave Software (but back in the black), Ross Systems, Sonic Solutions, Sunair Electronics, SureWest Comms, Switchboard, Taiwan Semiconductor Manufacturing, Technology Solutions, Telecom Italia, TeliaSonera, TietoEnator and VSE.

Very poor results* were announced by Brightpoint (but back in the black), Digital Angel (but back in the black), MDC, Meta Group (but back in the black), Mitek Systems (but back in the black), MTS (but back in the black), PC Mall (but back in the black), Rudolph Technologies, Sykes Enterprises, Taitron Components (back in the black-just), TechTeam Global (but back in the black), TeleTech (but back in the black), Vialtra (but back in the black) and WebMethods (but back in the black).

Losses* were posted by ActivCard, Activision, Actuate, Adaptec, Aether Systems, Agere Systems, Akamai Technologies, Alcatel SA, AltiGen, Anaren, Anaren Microwave, Answerthink, AOL Latin America, Ariba, AT&T Canada, AudioCodes, Avanex, AVX, Axcelis Technologies, Axeda Systems, BackWeb Technologies, Baldwin Technology, BindView, Bitstream, Bookham Technology, Borland, California Micro Devices, Caliper Technologies, Captaris, Celeritek, Cellular Technical Services, Ceragon Networks, Charter Comms, ChipPAC, Choice One Comms, Cirrus Logic, Cognitronics, Comcast, Comdial, CommScope, Computer Horizons, Comshare, Copper Mountain Networks, Corvis, CorVu, Cox Comms, Creo, Critical Path, Crown Castle International, Cysive, Delphax Technologies, Dialog Semiconductor, DiamondCluster International, EDS, EFJ, eGain, Elcom International, En Pointe Technologies, Endwave, Enzenia!, ePresence, ESS Technology, Exabyte, F-Secure, FalconStor, FiberNet, Gartner, Gemplus International SA, Giga-tronics, Glenayre Technologies, Global Payment Systems, GSI Lumonics, I D Systems, iGate, IMSI, Infocrossing, InfoSpace, Innotrac, Insight Comms, Intershop Comms AG, InterWAVE, InterVoice, ITC-DeltaCom, Jabber, Jacada, JDS Uniphase, Jupitermedia, LanOptics, Lantronix, LightPath Technologies, Madison River Comms, Marimba, Matsushita Electric Industrial, Maxcom Telecomms, Maxwell Technologies, Mercator Software, MicroHelix, Microvision, Mobility Electronics, nCipher, Net Perceptions, Netia holdings SA, NetRatings, NetScout Systems, Newport, Notify Technology, NTN Comms, Numerex, Olivetti, ON Technology, Onyx Software, Optio Software, Orckit Comms, Pac-West Telecomms, Peco II, Perceptron, Perot Systems, Pressac, PrintCafe Software, PSi Technologies, Quantum, Radcom, Radiant Systems, Radyne ComStream, RDM, Read-Rite, RealNetworks, Redbus Interhouse, S1, Savvis Comms, Selectica, SimpleTech, Sirenza Microdevices, Softbank, Somera, SpeechWorks, Stratex Networks, Superconductor Technologies, T-NETIX, Tangram, Tecnomatix, Telephone & Data Systems, Terayon Comms Systems, Terra Lycos SA, Thus, THQ, Time Warner Telecom, TippingPoint Technologies, TMNG, Tower Semiconductor, TransAct Technologies, Triton PCS, TSI Telecomms Services, TTM Technologies, Tut Systems, Tvia, Ultimate Software, US Cellular, US LEC, USA Interactive, Veramark Technologies, VerticalNet, Viewpoint, Viisage Technology, Vitria, Wavecom SA, WaveRider Comms, Witness Systems, WorldQuest Networks, WorldTeq, XATA, XM Satellite Radio Holdings, Z-Tel, Zarlink Semiconductor, Ziff Davis and Zomax.

Other financial news included share buy-back announcements from Compuware, Selectica, Tessco and Trend Micro; and results/profit warnings (often veiled) from Bookham Technology, Cisco, Epcos AG, Ericsson, Gateway, JD Edwards, LSI Logic, Marconi, Morse, Overture Services, RF Monolithics, SAP Systems Integration AG, Tektronix, Thus and ViaSat.

There were share split announcements from Activision, Basic Technologies (reverse), FiberNet (reverse), InterWAVE (reverse), Meridian Holdings (reverse) and Saba Software (reverse); a postponed IPO from DigitalNet and a very successful IPO by Singapore Telecomms for its postal unit.

Additionally, Daisytek International`s US subsidiaries have filed for Chapter 11 protection; while Ixos Software AG is to re-state its 2002 figures and Microtune its numbers for 2001 and 2002.

Locally

Cape Empowerment Trust (+25%)

Cycad (-25%)

EC-Hold (-70%)

Elexir (+33.3%)

Intervid (-27.6%)

MGX (-46.2%)

Pinnacle (+37.5%)

RA Hold (-55.2%)

Stella Vista (+100%)

Vesta (+20%)

Internationally

Adept Technology (+66.7%)

Daisytek (-75.8%)

Digital Lightwave (+113%)

Geoworks (+200%)

MCSI (+112.5%)

Network Computing (+233.3%)

Persistence Software (+73.1%)

Proxim (+75.4%)

PSC (+400%)

Robocom Systems International (-65.4%)

BusinessWeek has published its annual Best Performer listings from the S&P 500 index. Apart from Dell at number nine and Microsoft at 15, the only other technology companies in the top 50 are Electronic Arts at 17 and First Data at 43. These ratings sum up the state of the industry very succinctly!

* 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.