The losses continue

The acquisitions of Informix by IBM and the continued flood of quarterly losses, profit warnings and job loss announcements dominated the international world of IT and telecommunications during the last two weeks.

[VIDEO]home, the CIH and ValueCom share suspensions on the JSE, and the political positioning being undertaken by Eskom and TransNet re the second fixed-line telecoms operating licence, stole much of the local headline space.

• we saw good full-year figures from Altech (revenue and earnings both up) and Fintech (now a financial services group following a reorganisation);
• satisfactory full-year results from IST (revenue static but earnings well up);
• disappointing year-end numbers from C-Tech (just in the black) and Datacentrix (revenue well up but earnings down a little caused by its new e-business initiative);
• full-year loss from Cyberhost (revenue flat) and Paradigm Capital Holdings (massive earnings loss);
• disappointing interim numbers from CCH (revenue just up but earnings slightly down);
• an interim loss from Oxbridge Online (revenue also well down);
• a profit warning from Casey; and
• the suspension of CIH and ValueCom shares trading on the JSE.

[Local]

Other local news included:

• the appointment of a completely new board at Cyberhost;
• the imminent sell-off of PeopleSoft SA and the resignation of its MD, Jan Coetzee;
• the local launch of Ascential Software SA;
• the announcement of yet another restructuring at Siltek;
• the closure by Ixchange of its Ability operations in the UK and Asia; and
• the announcement by Naspers that it intends to list Media24 within the next three years.

• we saw the closure of HAL Computer Systems and Stormix Technologies, a Linux vendor;
• the name change of MRL to Focus Technologies;
• the founders of Lernout & Haupsie in jail on fraud charges;
• the creation of a wireless joint venture between Sony and Ericsson to market headsets;
• the acquisition by Stamps.com of a portfolio of patents and trademarks from E-Stamps; and
• the sell-off by British Telecom of its 33% stake in Malaysia`s Maxis Comms, following hot on the heels of it sell-off of stakes in Spain`s Airtel and Japan Telecom.

Watch out for the fate of Lucent Technologies, which is selling either some of its parts or maybe even the complete company.

Paul Booth, MD, Global Research Partners

Additionally, watch out for the fate of Lucent Technologies, which is selling either some of its parts or maybe even the complete company; the possible sell-out to Vivendi Universal of UK-based Scoot.com; the rumoured buy-out of Ariba by IBM or Siebel; and the sale by British Telecom of its stakes in Japan Telecom and J-Phone to Vodafone.

The IBM/Informix acquisition is of particular note since it combines two of the largest database providers and puts immense pressure on Oracle and Microsoft (SQL) in particular. I also wonder if Sybase will now lose out heavily?

[International]

Other international news included:

• the appointments of Sir Christopher Bland as chairman of British Telecom, Michel Boussard as CEO of Interxion, Greg Brady as CEO of i2 Technologies, William Conner as president and CEO of Entrust Technologies, Harry Hobbs as CEO of PSINet and Larry Mueller as CEO of Ariba;
• the resignations of William Fisher, chairman and CEO of Transaction Systems Architects, Herb Hribar, CEO of Interliant, Alex Mandl, chairman and CEO of Teligent, and Sir Iain Vallance, chairman of British Telecom; and
• job loss announcements from 3M, Adaptive Broadband, Agere Systems, AvantGo, Caldera Systems, Comverse Technology, Corning, Digital Island, ECI Telecom, Epson Americas, Excite@Home, Exodus Comms, F-Secure, Flextronics, HAL Computer Systems, Honeywell, JDS Uniphase, Jupiter Media Metrix, KPMG, Loudcloud, Marimba, Mercator, Nextel Comms, PSINet, Sonera, Tut Systems, USinternetworking, Vignette, Vitesse Semiconductor and Wind River Systems.

We saw excellent figures from ACT Teleconferencing, ArtemisSoft, AXT, Check Point Software Technologies, GlobeSpan, Information Holdings, Interlogix, JD Edwards, M-Wave, Metalink, Metro One Telecomms, Netegrity (back in the black), Novellus Systems, Opnet Technologies, Optical Communication Products, Power-One, Radware, Telular (back in the black), Trend Micro, UTStarcom (back in the black) and Via Technologies.

Good numbers were recorded by 1mage, Airspan Networks (back in the black), Allen Telecom, Amdocs, Anaren Microwave, Anixter International, ASM International NV, AT&T Wireless, Autonomy Corp, Avnet, Barra, Borland Software (back in the black), Coherent, Convergys, Corning, CSG Systems International, CyberOptics, Cyco Software, Datum, DDI (back in the black), ECTel, Edgewater Technology, Epcos AG, EPIQ Systems, Extreme Logic, FEI, Forrester Research, Founder Holdings (back in the black), France Telecom, FYI, Hitachi, ICT Group, Illuminet, Ilog SA (back in the black), Insight Enterprises, Integrated Silicon Solution, Intergraph, Interlogix, International Rectifier, Intersil (back in the black), Iron Mountain (back in the black), L3 Comms, Logitech International, Macrovision (back in the black), Manhattan Associates, MatrixOne (back in the black), Maximus, Mechanical Dynamics, Mentor Graphics, NDS Group, NEC, Nortech Systems, Oberthur Card Systems, Orbotech, PEC Solutions, PeopleSoft, Perot Systems (back in the black), Polycom, Quantum DLT & Storage Systems Group, RiT Technologies, Sanchez Computer Associates (back in the black), ScanSource, SK Telecom, Staffware, Sypris Solutions, Tele Danmark, Tier Technologies, TMNG, Universal Electronics, Verisity (back in the black), Viisage Technology and Zebra Technologies.

Satisfactory results came from ALI Technologies, ASE Test Limited, Avant, Brightpoint, Cadence Network, Cap Gemini Ernst & Young, Century Business Services, Chunghwa Telecom, Commonwealth Telephone Enterprises (back in the black), CommScope, Concurrent Computer (back in the black), Creo, Cysive (but back in the black), Dynamics Research, ECsoft Group, EDS, FlexiInternational Software, GSI Lumonics, Integrated Circuit Systems, Inter-Tel (back in the black), InterTAN, IXOS Software AG (back in the black), Keane, KPMG (back in the black), Lexmark, Luminant, Maxwell Technologies (back in the black), MCSi, MSC.Software, MTS Systems, Network Six, New Horizons, OSI Systems, PCD, Pericom Semiconductor, Portugal Telecom, Primus Telecomms (back in the black), Samsung Electronics, SBC Comms, Silicom, Sitel, Syntel, Technitrol, Toshiba (back in the black), TTM Technologies, Verizon Comms and Vishay Intertechnology.

Mediocre results were posted by 3M, Acer, ACT Manufacturing, Actel, Adaptec, Alcatel, Alltel, Alpha Industries, APC, Applied Micro Circuits, Applied Microsystems (back in the black), BMC Software, Bsquare, C-Cube Microsystems, Caliper Technologies, CanWest Global Comms, CGI Group, Cirrus Logic, Compaq, CompuCom (back in the black), Computer Access Technology (but back in the black), Compuware, Cox Comms, CT Comms, Cymer, Dassault Systemes, Deltek, Dialog semiconductor, Diebold, DSP Group, DST Systems, Dynamics Research, ePresence, Exar, Fairchild Semiconductor International, FiberMark, Foundry Networks, Fujitsu, Hector Comms, Helix Technology, Imation, Infineon, Informix (but back in the black), Ingram Micro, Ionics, Lightbridge, Logic Devices, MasTec, Matsushita Electrical, Maxtor, Microchip Technology, MSL (but back in the black), O2Micro International, OAOT, Omnicom Group, Ontrack Data International, Open Text, Par Technology (but back in the black - just), OPTi, Performance Technologies, Pinnacle Data Systems, Plantronics, Power Integration, Psi Technologies Holdings, Qualcomm, Qwest Comms, Radiant Systems, Radyne ComStream, RCM Technologies, Rimage, Rohn Industries, Ross Systems (back in the black), Seagate, Selectica, Simple Technology, Siliconix, Snap-On, Somera, SS&C, Storage USA, Sunquest Information Systems, Sunrise Telecom, Sykes Enterprises, Symbol Technologies, Taiwan Semiconductor, Technisource, Teledyne Technologies, Telmex, Tessco Technologies, TransNet, Unigraphics Solutions, United Microelectronics, Varian Semiconductor, Wanadoo SA, WorldCom and Zomax.

Very poor results came from Comms Systems, DTM, Gentia Software, Genus (but back in the black), IMRglobal, Intelligroup (but back in the black), Intranet Solutions, LanOptics (but back in the black), Mapics (zero income), Micros Systems, NetObjects, Precise Software Solutions (but back in the black - just), Printronix, Printware, Saga Comms, Signal Technology, Symyx Technologies, Technology Solutions Company, UBICS (but back in the black) and Walker Interactive Systems (but back in the black).

Losses were reported by 3DLabs, 724 Solutions, Access Worldwide Comms, Accom, Ace*Comm, Adept Technology, ADVA Optical Networking, Aegis Comms, Aetrium, Agere Systems, AirNet Comms, Alaska Comms, Allegiance Telecom, Alliance Fiber Optic Products, Alliance Semiconductor, Altigen Comms, Amazon.com, Amkor Technology, Anadigics, Andrea Electronics, ANTEC, APAC Customer Services, Applix, Apropos Technology, Aptimus, Arc International, Arch Wireless, Arguss Comms, Aris, Arrow Electronics, Artisoft, Asante Technologies, Asia Global Crossing, Ask Jeeves, Aspen Technology, AT&T, AT&T Canada, ATG, Atlantic Data Services, ATS, Autoweb.com, Avanex, AvantGo, Avaya, Axcess, AXS-One, Axsys Technologies, BackWeb Technologies, Bell Canada International, Beyond.com, BindView, Biper, Blue Martini Software, Bookham Technology Plc., Bottomline Technologies, Brio Technology, BroadVision, Brooks Automation, Butler International, C-bridge Internet Solutions, Cadmus Comms, California Micro Devices, CAM Commerce Solutions, Cambridge Technology Partners, Caminus, CCC Information Services Group, Celeritek, Ceragon Networks, Charter Comms, CheckFree, ChipPAC, Chordiant Software, Clarus, Click Commerce, ClickSoftware, CNET Networks, Cobalt Group, Cognitronics, Comdial, Comdisco, CompleTel, Computer Horizons, Concord EFS, Concur Technologies, Condor Technology Solutions, Corio, Covansys, Corvis, Cotelligent, Creative Technology, CTC Comms Group, CuseeMe, Daleen Technologies, Data Dimensions, Data I/O, Datakey, Datastream Systems, Datawatch, Delano Technology, DeltaCom, Deutsche Telekom, DiamondCluster International, Digex, Digital Impact, Digital Insight, Digital Island, Digital River, DigitalThink, Digitas, DMC Stratex Networks, Docent, DSL.net, Dynex Power, E.mergent, EarthLink, EchoStar Comms, eGain Comms, Egghead.com, Elastic Networks, Elite Information Group, Eloquent, Embratel, eMerge Interactive, ENCAD, Endwave, Epicor, Eprise, eShare comms, eSoft, Essex, ESS Technology, ETC, Evoke Comms, Evolve, Exchange Applications, Excite@Home, EXE Technologies, Exodus, Extended Systems, Exult, FiberCom, FiNet.com, First Virtual Comms, Flag Telecom, Flextronics, Focal Comms, Fortel, Framfab, FreeMarkets, Gadzoox Networks, Gemplus International SA, General Magic, GenRad, Gensym, Geoworks, Glenayre Technologies, Global Graphics SA, Globix, GoAmerica, GoTo, GraphOn, GRIC Comms, H-NET.NET, Harris Interactive, Hummingbird, Hybrid Networks, Hypercom, Hyperion, I-data international, iAsia Works, Ibis Technology, iGo, Illumina, Image Sensing Systems, ImageX.com, iManage, Indigo NV, Infinium, Infonautics, InfoNow, InfoSpace, InfoVista, Innoveda, Innovex, Input/Output, Integrated Device Technology, Intellicorp, InterDigital Comms, Interland, Interliant, InterNAP Network Services, Intershop Comms AG, InterTrust Technologies, interWAVE Comms, Iona Technologies, iPrint.com, Insacell, ITXC, IVI Checkmate, iXL, j2 Global Comms, Jacada, Jazztel Plc., JDS Uniphase, Juno Online Services, Jupiter Media Metrix, Key Tronic, KPNQwest NV, Kronos, Lante, Lantronix, LightPath Technologies, Lionbridge, Loral, Loudeye Technologies, LSI Logic, Lucent Technologies, M-Systems, Macromedia, Mbrane, McLeodUSA, MDSI Mobile Data Solutions, Medialink, MEMC Electronic Materials, Merkantildata ASA, MessageMedia, Metatec, Metawave Comms, Metro Information Services, Metromedia Fiber Network, MicroStrategy, Microtune, Microware Systems, Millicom International Cellular SA, Mitek Systems, MKS Instruments, Mobility Electronics, Mobius Management Systems, Motient, Mpower Comms, MRO Software, MRV Comms, Nanophase Technologies, Nashua, National Information Consortium, NEON Systems, Net Perceptions, Net2000, NetIQ, Netopia, NetRatings, NetScout Systems, NetSpeak, Network Access Solutions, Network Engines, Network Plus, New Focus, Nextel Comms, Novadigm, Novatel Wireless, NTELOS, NTN, Oak Technology, On Command, ON Semiconductor, ON Technology, On2 Technologies, Online Resources, OnLink Comms, Onyx Software, Open Market, Optibase, OTG Software, P-Com, Pac-West Telecomm, Paradyne Networks, Parthus Technologies, PCTEL, Per-Se Technologies, Perceptron, Peregrine systems, Perficient, Persistence Software, Pinnacle Systems, Previo, Prodigy Comms, Prophet 21, Proxicom, PRWW, QC Optics, QSP Group Plc., QuickLogic, RADCOM, RadView Software, Rainbow Technologies, Razorfish, RCN, Regent Comms, Remedy, RiverSoft Plc., RWD, S1, Sage, Sapiens, SAP systems Integration AG, Sapient, ScanSoft, SCC Comms, SCI Systems, Scient, SciQuest, SCM Microsystems, SCO, SeeBeyond, Sento, SignalSoft, Silicon Labs, SilverStream Software, Simtek, Sina.com, SmartDisk, Smith Micro Software, Socket Comms, SONICblue, SpeechWorks International, Speedcom Wireless, SRS Labs, ST Assembly Test Services, Stanford Micro Devices, STM Wireless, Storage Computer, StorageTek, Superconductor Technologies, Superior Telecom, SynQuest, Taitron, Tangram Enterprise Solutions, TCSI, Technical Comms, Tecnomatix, Telaxis Comms, Tele2 AB, TeleCommunication Systems, TeleTech Holdings, Telus Comms, Terayon Comms Systems, Thus, Tower Semiconductor, Tricord Systems, Tripath Technology, Triton Network Systems, Tumbleweed Comms, UbiquiTel, Ultima Networks Plc., Ultimate Software, Universal Access, USinternetworking, US LEC, USA Networks, V-ONE, ValiCert, VeriSign, Versant, Versata, Versatile Mobile Systems, VerticalNet, Viacom, VIA NET.WORKS, Viant, Viasystems group, ViewCast, Vignette, VimpelCom, Vina Technologies, Virage Logic, ViryaNet, VitalCom, Vitria Technology, Vitrix, Vixel, VocalTec, VSI Enterprises, Vyyo, Wavecom, WebMethods, WebSense, Western Digital, Western Multiplex, Williams Comms, Wink Comms, Witness Systems, World Wireless Comms, WorldGate Comms, XO Comms, Zilog and Zoom Telephonics.

Other financial news included profit warnings from Alcatel, Anaren Microwave, Avanex, CDT, Choicetel Comms, Clear Channel Comms, CNT, Corning, Cylink, Eastman Kodak, ECI Telecom, Ilog SA, Marimba, Sorrento Networks, Symbol Technologies, Tektronix, Transaction systems Architects, VA Linux Systems, Vignette and Wind River Systems.

There was also a mediocre IPO from Simplex Solutions (testing software); the de-listings of Arch Wireless, PSINet and World Access from Nasdaq; and the filings by Pliant Systems and World Access for Chapter 11 bankruptcy protection.

Locally

Accord (-40%)
Bryant (+100%)
Cyberhost (+200%)
Elexir (+25%)
Explorer (+50%)
Ixchange (-24.5%)
OSI (-38.9%)
Paradigm (-25%)
Sethold (+70%)
Y2KTec (+100%)

Internationally

Auspex Systems (+68.9%)
Autonomy Group (+66.5%)
Broadbase Software (+86.4%)
CMGI (+109.4%)
Frontline Comms (+85.2%)
Internet America (+57.1%)
Lightning Rod Software (-57.3%)
Mercator Software (+68.3%)
MRO Software (+92.6%)
Peerless Systems (+70.3%)
Robocom Systems International (+79.5%)

Finally, my last column had Evolving Systems incorrectly reporting a quarterly loss, for which I apologise.

Bill Gates has now lost his "richest man" status to Robson Walton, chairman of Wal-Mart; and global IT services, according to Dataquest, will double by 2005 to $1 400 billion, when compared to the 2000 figure.

The next issue of this column will be on 21 May as I am away playing in the South African National Bowls championships.