Taking control

Dominating the international IT market last week was the acquisition of Wang Global by Netherlands-based Getronics NV; the eventual agreement worth nearly $1.7 billion between Philips Electronics NV and VLSI Technology for the former`s control of the latter. There was also the $57 billion win by AT&T for control of MediaOne, making it the largest US cable operator.

Wang Global`s acquisition by a group half its size allegedly makes the combined entity the largest services company in Europe and one of the five largest in the world. Wang acquired Olsy Systems and Services in March 1998 and has just announced yet another quarterly loss.

At home the on-going battle for Reunert by Altron/BOE and the merger of AST and Abraxas to create "Asta" stole the local limelight.

The formation of Asta to create another potential local IT giant is well positioned, once this merger has settled down, to absorb some of the other smaller IT entities in the local market, and put some sanity back into an industry that has witnessed an excess of listings over the past 18 months.

• good full year numbers from Stantronics;
• satisfactory full-year figures from Fintech;
• excellent interim numbers from Abraxas, Dimension Data and Spescom;
• mediocre interim results from Elexir;
• the buy-out of three of the minority shareholders by Global Technology, ahead of time;
• the announcement that Brainware will move to the main board at the end of May 1999; and
• the sell-off of its Softline share-holding by Hosken Consolidated Investments, hot on the heels of its DataTec investment disposal.

[Local]

Local Cautionary Notices (see attachment)

Local IT Listing Calendar (see attachment)

• we saw a negative impact on the shares of EMC, following the announcement by HP that it had tied up a storage deal with Hitachi;
• the cutting of some 500 jobs by National Semiconductor, following its announcement that it was dumping its PC microprocessor capability;
• the resignations of the CEO at Template Software, and another senior executive at Compaq;
• the firing of the CEO at Hyperion, as the Hyperion/Arbor Software merger falters; and
• Informix`s announcement that Jean-Yves Dexmier, its CFO, will take over as CEO in July.

[International]

We saw excellent figures from Groupe Focal, Macromedia and QLogic.

Losses came from Advanced Comms Group, ASM International (revenue also well down), Citation Computer Systems, CompUSA, Egghead, Gruppe Formula SpA, GSI Lumonics, Information Management Associates, Information Resources, Logic Comms Enterprises, Microware Systems, MiningCo.com, NetSpeak, PageMart Wireless, ScanSoft, Security First, Startec Global Comms, Summit Design, Theglobe.com, USinternetworking, Viatel and Wang Global.

Good numbers were recorded by Anicom, Candle (but income not declared!), Computer Sciences, GFI Informatique SA, Macromedia, Mastech, Silitronix, Topcall International AG, Unigraphics (back in the black) and Vishay. Satisfactory results came from Anixter, Imation, Intelligent Systems, Magic Software, Pioneer Standard Electronics, SPSS, Sterling Commerce, Synergon Informatika Rt and Thomas & Betts.

Mediocre returns came from Indigo (just back in the black), M-Wave (just back in the black), Meta Group and Rolfe & Nolan (back in the black). Very poor results came from Box Hill Systems (just in the black), Concurrent Computer (but just in the black), IBIS (but back in the black) and PCD (but back in the black, just).

Other financial news included profit warnings from Admiral, Autodesk, Information Advantage, JD Edwards, National Semiconductor (charge for dumping PC Microprocessor business), Newbridge Networks and Wall Data; and share splits from AboveNet and EMC. Internet investment and holding company, CMGI, is to re-state four quarters of figures, due to SEC Guidelines on write-offs.

Locall

Elexir (-27.8%)
EOH (+21.7%)
Explorer (-28.6%)
Infinity (-23.5%)
JemTech (+31.3%)
NetActive (-18.8%)
Paracon (-18.8%)
Zaptronix (-19.1%)

Internationally

AT&T (+19.7%)
C-Cube Microsystems (+19.6%)
Comcast (-40.4%)
IMSI (-28.7%)
Marcam (+25%)
Meta Group (+31.5%)
MIPS (-19.5%)

National Semiconductor (+50%)
Newbridge Networks (-19%)
Network Solutions (-20%)
Security First Technologies (-20.6%)
Segue Software (+32.4%)
SSA (+53.3%)
Tech Data (+24.6%)
Tektronix (+19.6%)

Rumours circulating include the selling-off of Spectrum, the network management business of Cabletron, the buy-out of Siebel by IBM, and the possible merger of the computing interests of Siemens with Fujitsu.