Technology company losses continue

A loss from Dell, very poor numbers from HP and the continuing flow of job loss announcements and profit warnings dominated the international world of IT and telecommunications last week.

[VIDEO]At home, the revised amendments to the telecoms policy stole much of the local headline space.

• we saw good full-year numbers from Datacraft Asia, Dimension Data`s 51% Asian subsidiary, and Net1 Applied Technology Holdings (revenue and attributable earnings well up);
• disappointing year-end figures from MGX (revenue well up but attributable earnings down);
• poor year-end numbers from AST (net profit down significantly even though revenue well up);
• year-end results from CCH, which is now a cash shell rather than an IT company following various disposals;
• good interim numbers from EC-Hold (back in the black and revenue well up); and
• satisfactory half-year figures from Dynamic Cables (back in the black).
• Additionally, C-Tech is in danger of being suspended by the JSE for the non-filing of its financial statements and Core Holdings has advised that its late annual financial statements have a qualified audit opinion.

[Local]

Other local news included:

• the changes to the telecoms policy, which see government shelving plans to allow broadband licences and a third competitor to Telkom;
• numerous rumours circulating that Dimension Data may now be the object of a take-over bid, following the drop in its share price, with two of the companies named being Cisco and Compaq, although both denied the rumours;
• the agreement by shareholders for the restructuring and name change of Contlan Holdings;
• the announcement by AST that it had placed the 30% Iscor share holding in AST with three black empowerment groups; and
• the resignation of Jaap Griessel, COO and acting-CEO of Omega Alpha international.

• we saw a restructuring of Ericsson and the appointment of a COO;
• the creation of a new hardware company, ICCC, that develops modular modem/router/set-top box technology; and
• the denial by the appeals court to delay Microsoft`s anti-trust case.

This week sees results from Comparex and Siltek, the latter`s numbers being awaited with much interest especially as its distribution arm is under immense pressure.

Paul Booth, MD, Global Research Partners

Additionally, look out for the possible relegation of Marconi from the FTSE-100; the next step in the possible buy-out of CenturyTel by Alltel, the first unsolicited bid having been rejected; the possible sale of NetStore; the acquisition of UK-based ISP, Affinity Internet Holdings, by Italian-based Tiscali; and the acquisition of an unnamed software company by UK-based Orbital Software.

[International]

• the appointments of Robert Russell as chairman and CEO of Ravisent Technologies and Joseph Wright as CEO of PanAmSat;
• the resignations of Ran Eisenberg, chairman and CEO of Optibase, Alan Kessler, GM of Palm Software unit, and Gary Smith, CEO of NetStore;
• the removal of James Dunning, chairman, president and CEO of Ziff Davis; and
• job loss announcements from Accenture, Ariba, Certicom, Corning, Egghead.com, ExciteAtHome, General Semiconductor, Globalstar Telecomms, Motorola, Network Appliance, Philips Electronics, Silverline Technologies, Sina.com and Sony Electronics.

We saw excellent figures from Applied Materials, China Mobile, Ciena, Nvidia, SSGI and Torex.

Good numbers were recorded by Barak, BEA Systems, CACI International, Computacenter, Cordiant Comms Group, Datacraft Asia, Integral Systems, MIS AG (back in the black), Open Text, Polska Telefonica Cyfrowa (back in the black), PT Telekomunikasi Indonesia, SBS Technologies, T-Netix (back the black), Torex, TTI Telecom International and ZiaSun Technologies (back in the black).

Satisfactory results were posted by Affordable Telecomms, Autodesk, Elmos Semiconductor AG, InterTAN, KMC Telecom, Madge (back in the black), Matav, Nestor (back in the black), Telia and Teltronics (back in the black).

Mediocre returns came from @Track Comms, ACI Telecentrics, Alliance Imaging, Analog Devices, Brazil Telemar, Brocade Comms Systems, CompuDyne, Daktronics, ePlus, Laser Technology, MSX International, Network Appliance, OnSpan Networking (but back in the black), PayStar (but back in the black), Photronics, Telecom New Zealand, ScanSource and Serena Software.

Very poor results were announced by CII Technologies (but back in the black), Digital Video Systems, Emergent Information Technologies (but back in the black) and HP.

Losses were reported by 24/7 Media, Acorn Holding, ACT Teleconferencing, Active IQ, Adelphia Comms, ADIC, ADP, Advant-e, Agile Software, AirNet Comms, Altris Software, Anacomp, Aperian, Apogee Technology, Appient Technologies, Applied Digital Solutions, Applied Graphics, Aptimus, Arel Comms, Artemis International Solutions, ASA International, Avant!, Avnet, Aztec Technology Partners, Blue Zone, BrightStar Information Technology Group, Boundless, Bridge Technology, C-COR.net, CacheFlow, CheckFree, Classic Comms, CNT, Comdial, Comdisco, Comtrex, Credence Systems, Crosswave Comms, Crystal Systems, CT Holdings, CTI Group, Data Critical, Daval Comms, Dell, Ditech Comms, E*Comnetrix, E-Sync Networks, Eiger, Elcotel, Essex, Envoy Comms, ESPS, FairPoint Comms, Faro Technologies, Forecross, Frontstep, FullNet Comms, FutureOne, Gensym, GenTek, Getronics, GigaMedia, Gilat Satellite Networks, Gunther International, Hanaro Telecom, Heartland Technology, High Speed Net Solutions, Horizon PCS, I-Sector, iAsiaWorks, IFS International Holdings, ImageMax, Infodata, insci-statements.com, Intec Telecom, Integrated Business Systems & Services, Intelli-Check, Intentia, Interactive Objects, Internet America, Internet Gold, Internet Initiative Japan, interWAVE Comms, Ion Networks, ISCO International, Key Tronic, Keyware Technologies NV, Level 8 Systems, Liberty Livewire, Lightning Rod Software, Lycos Europe, Magic Software, Marvell Technology Group, Maxim Integrated Products, Metromedia International, Microcell, MindArrow Systems, Mindset Interactive, Momentum Business Applications, National TechTeam, nCipher, NCT Group, NeoMedia Technologies, NEON Comms, Nera ASA, netGuru, NeoMagic, NetObjects, Netplex Group, NetStore, Network Access Solutions, Niku, Nocom AB, NQL, nStor Technologies, Nuvo, Nuwave Technologies, OmniSky, Optelecom, Orius, PacificNet.com, ParkerVision, Patsystems, PentaStar Comms, PhoneTel Technologies, PlanetCAD, Portal Software, PPT Vision, ProTech Comms, QC Optics, QueryObject Systems, Ramtron, Ravisent Technologies, Razorfish, Satmex, Screaming Media, Sherwood International, Simtek, Sina.com, Sirius Satellite Radio, SkillSoft, Speedcom Wireless, Stonepath, Storage Area Networks, Storage Computer, Stratus Services Group, Sunrise Technologies, SVI Solutions, Techdyne, TEK DigiTel, Telebyte, TeleCorp PCS, Telescan, TeraForce Technology, Thinkpath, Titan, Transmation, Triant, UbiquiTel, Ultradata Systems, UnitedGlobalCom, Universal Display, USOL Holdings, Vertex Interactive, Viador, Visual Data, Vizacom, VSI Enterprises, Wealth Management Software, WebLink Wireless, WidePoint, Wind River Systems, WorldPort Comms, WorldQuest Networks, Worldwide Wireless Networks, Xenos, Xybernaut and Z-tel Technologies.

Other financial news included profit warnings from Autodesk, BEA Systems, Brocade Comms Systems, Ciena, Computacenter, Credence Systems, Dell, General Semiconductor, nCipher Plc., Network Appliance, Pumatech, Rohn Industries, SBS Technologies and Scientific Atlanta.

There were also share split announcements from INSpire Insurance Solutions and Nvidia. Additionally, Covad Comms and Wavve Telecomms have filed for Chapter 11 bankruptcy protection.

Locally

C-Tech (+66.7%)
Casey (+166.7%)
Elexir (+33.3%)
I-Fusion (-25.9%)
OneLogix (+24%)
Pinnacle (-28.6%)
Pradatech (-33.3%)
Sempres (+83.3%)
ShawCell (+28%)
Y3K (+100%)

Internationally

Cedara Software (-40.7%)
Ciena (-37.4%)
CompleTel Europe NV (-45.7%)
Convergent Comms (-32.3%)
Cyberian Outpost (-34.1%)
Enherent (+83.3%)
InterTAN (-33.1%)
MEMC Electronic Materials (+51.1%)
NetObjects (-50.7%)

This week sees results from Comparex and Siltek, the latter`s numbers being awaited with much interest especially as its distribution arm is under immense pressure.

Additionally, the "new economy" magazine market has suffered another blow with the closure of the Industry Standard. We have already seen the merger of "eCompany now" and "Business 2.0" under the title of the latter, the demise of "Wired" and the sell-off of "Fast Company".