Take-overs dominate IT news headlines

The abandonment of the Hewlett-Packard/PricewaterhouseCoopers take-over deal and several multi-billion take-overs dominated the international world of IT and telecommunications last week.

The Primedia/Kagiso merger raises some interesting speculation as to the future of their various IT/telecommunications publications

Paul Booth, MD, Global Research Partners

At home, the details of the proposed take-over of CCH by MGX, the proposed listing in Johannesburg and London of Altech`s UEC entity, and the proposed merger of Primedia and Kagiso Media stole most of the local headline space.

• we saw good full-year numbers from Reunert (although revenue down, margins well up);

• satisfactory year-end numbers from Maxtec (revenue just up a little, and earnings up);

• slightly disappointing full-year figures from UCS (revenue up and earnings marginally down);

• full-year loss from Spescom (revenue also down);

• mediocre interim figures from Softline (revenue slightly down but earnings well down);

• half-year losses from Aquila Growth, which now owns a number of IT entities ex-ITI and Synergy Holdings (revenue also significantly down);

• a massive interim loss from M-Web (loss greater than equivalent period last year, although revenue well up); and

• the suspension of Explorer`s shares.

[Local]

Other local news included:

• the announcement by Altech that it intends unbundling UEC Technologies, its multimedia company, and listing it on the JSE next month, and hopefully, subject to approval, apply for a secondary listing in London;

• the news that Infracom is not to be part of the MGX/CCH take-over and that until it is sold, it will remain the only asset of the listed CCH entity, following the MGX/CCH transaction;

• the appointment of Business Edge Systems as the local representative of Australian-based IMX Software Group`s forex products, and of Dax Data as the distributor of Allaire`s Internet software products; and

• Ernst & Young is to launch an e-commerce vehicle that will enable clients to access its data mining expertise over the Internet. Additionally, Spescom now has a controlling interest in US-based Altris, following the latter`s buy-out of UK-based Spescom KMS.

• we saw the breakdown of the proposed Hewlett-Packard/PricewaterhouseCoopers deal;

• an announcement from Fujitsu that it intends establishing a US-based company focused on the storage and server market;

• the name change of Comms World International to Active Link Comms and Spatial Technology to PlanetCAD;

• the news that AT&T is planning to spin-off Liberty Media Group; and

• the announcement that the electronic purchasing units of Capital Group, an Internet company, and Andersen Consulting are merging to create an e-procurement business.

• Additionally, Mercator Software announced several strategic changes in its restructuring process and Oracle has lost its second senior executive (Gary Bloom) within the last five months.

[International]

Other international news included:

• the

  appointments

  of Gary Bloom (ex-executive at Oracle) as CEO of Veritas Software, Louis DiNardo as president and CEO of Xicor, John Jenkins as chairman and CEO of SAN Holdings, Tom Larkin as CEO of T-NETIX, and Todd Wille as president and CEO of Unify;

• the

  resignations

  of Constance Galley, president and CEO of Mercator Software, Alexander Hafele, co-founder and director of Infomatec, and Gerhard Harlos, co-founder and director of Infomatec;

• the death of Vin Prothro, chairman, president and CEO of Dallas Semiconductor; and

• job loss

  announcements from Asia Online, Chinadotcom, TheStreet.com and Unify.

We saw excellent figures from ADGI (back in the black), Analog Devices, Applied Materials, Autonomy, BEA Systems, Brooks Automation (back in the black), Data Systems & Software (back in the black), Ditech Comms, Energis, LTX and Network Appliance.

Losses came from Adelphia Comms, Advanced Radio Telecom, Advanced Systems International, Agile Software, American Software, Applied Digital Solutions, Arc International, ATEC Group, Aztec Technology, Barak, Barrister, Bitwise, Brooktrout, BTI Telecom, Cadapult Graphic Systems, Capri, CellPoint, Chinadotcom, Computone, Comtrex Systems, Concur technologies, CoreComm, Crossware Comms, Danka Business Systems, Datalink.net, Davel Comms, Digitec, EchoStar Comms, EuroTel Bratislava, Euroweb International, FieldWorks, FirstWorld Comms, Franklin Telecom, Fusion Networks, GigaMedia, Global Crossing, Global Technologies, Global TeleSystems, Globix, Group Telecom, GSE Systems, GTC Telecom, Hanaro Telecom, Heartland Technology, High Speed Net Solutions, Hypercom, IBS Interactive, ImageWare, IMSI, Infodata, InTechnology, Intelect, Interactive Objects, Internet Initiative Japan, ION Networks, Keycorp (Australia), Liberty Livewire, Logility, Marex, MCK Comms, Microcell Telecomms, Micrografx, Momentum Business Applications, Murdock Comms, Mynd, NeoMagic, Netlojix, Netplex Group, Network-1 Security Solutions, Niku, Norsat International, NTN Comms, Numerex, Osage, Outsourcing Solutions, PacificNet.com, Partner Comms, Pathnet Telecomms, PhoneTel Technologies, PNI Technologies, Printware, Q Comm International, QC Optics, Quad Systems, Quentra Networks, Ramp Networks, Recognition Systems Group Plc., Ross Systems, SAN Holdings, Scitex, Scoot.com, Semiconductor Laser International, Sheldahl, Simtek, Skillsoft, Software Spectrum, Sonic Foundry, Source Media, SPEEDUS.COM, Storage Computer, SVI (part of the Softline Group), Sycamore Networks, Telewest Comms, Terra Networks SA, Top Image Systems, Triant Technologies, TTR Technologies, Tyler Technologies, United Pan-Europe Comms NV, UPC, Ursus Telecom, US Wireless, USDATA, USOL Holdings, VA Linux Systems, Verilink, Vicom, Vizacom, VNCI, Worldwide Xceed Group, ZapMe! and Zydeco Energy.

Good numbers were recorded by Ansoft (back in the black), Autodesk, Cable & Wireless, Computer Network Technology, Comtex News Network, Daktronics, DoCoMo, Electronic Systems Technology, FiberCore (back in the black), Hewlett-Packard (disappointing numbers; full year net income only marginally up), Kewill Systems, LibertySurf SA, Microwave Transmission, Mitsubishi Electric (back in the black), Orius, Price Comms, Satmex (back in the black), SemTech, Serena Software, Singapore Telecomms, SysOpen, T-NETIX (back in the black), Telebyte, TSI TelSys (back in the black), TTI Telecom and Vodafone.

Satisfactory results were reported by 1mage Software, Applied Graphics Technologies (back in the black), Liberty Media Group and Telefonica.

Mediocre returns came from Avery Comms, Bogen Comms, Crystal Systems Solutions, Dicom Imaging Systems (but back in the black), ePlus, Excel Comms, GenTek, Gilat Satellite Networks, International Electronics, Liberty Digital, New Zealand Telecom, Teknowledge, Telecom Italia and Teleglobe Comms.

Very poor results came from ACT Teleconferencing, Altris Software (but back in the black - just), American Nortel Comms, Arel Comms, Cellular Technical Services, CompuDyne, Data Research Associates, Micros-To-Mainframes, Prologic Management Systems (but back in the black) and Techdyne.

Other financial news included profit warnings from BellSouth, CMGI, Commerce One and Triton Network Systems; share split announcements from Informatica and Sonic; and a satisfactory IPO from Novatel Wireless. Additionally, ICG Comms has filed for Chapter 11 bankruptcy protection.

Locally

Advtech (-20.7%)
CIH (-50%)
Cyberhost (-50%)
I-Solutions (-20%)
Jasco (-23.8%)
M-Web (+49.3%)
Maxtec (-23.3%)
OneLogix (-45.7%)
Sekunjalo (-24%)
Softline (-34.1%)
Vesta (+50%)

Internationally

Analog Devices (+34.3%)
Brook Automation (+29.3%)
Credence Systems (+28.6%)
Covad Comms (-32.4%)
Citrix Systems (+28.3%)
Global TeleSystems (-48%)
Integrated Device Technology (+30.2%)
Network Appliance (-28.5%)
Sapient (-25.5%)
Software Spectrum (-26.2%)
TriQuint Semiconductor (+35.6%)

The Primedia/Kagiso merger raises some interesting speculation as to the future of their various IT/telecommunications publications, especially since Systems Publishers has had a major negative impact on the income of Kagiso over the past year or two.