Two weeks in focus

The acquisitions of Sprint by MCI WorldCom (the world`s largest ever corporate take-over), DSP Comms and IPivot by Intel, Racal Telecom by Global Crossing, and the take-over of Vantive by PeopleSoft, dominated the international IT/telecommunications world in the last two weeks.

In a UK survey endorsed by the UK Institute of Directors, indications were that almost half of the directors in Britain have no interest in learning more about the Internet or e-commerce.

Locally, the purchase by EDS Corporation of the Dimension Data share in EDS Africa (as predicted in my previous column), and the flurry of local results, stole the headlines.

• the satisfactory listing of Prism;
• good year-end results from E-Data;
• excellent mid-year numbers from Top Info Technology;
• satisfactory interim numbers from Altron and Fintech;
• mediocre interims from Power Technologies;
• disappointing interim figures from Jasco (just in the black and as per previous warning);
• profit warnings from IST and Stantronics; and
• the announcement that Softline has been elected to the Indi25, the JSE`s top 25 industrial sector share index.

[Local]

Local acquisitions, mergers, investments etc (see attachment).

Local Cautionary Notices (see attachment).

Local Listing calendar (see attachment).

Other local news included:

• the naming of Aletha Ling, Software Future`s CEO, as the CSSA`s IT Personality of the Year, and Hannes Pretorius, the IT manager of Ingwe Coal, as CSSA`s IT Executive of the Year;
• the appointment of Graham Hayes as the new group MD at Maxtec and of Emile Laubscher as the new CEO of CS Holdings` international operations;
• the resignation of USKO`s financial director;
• the resignation of Gary Chalmers as the local CompTIA representative;
• the appointment of Crux Technologies as the local representative of software company Scottish Computer Services;
• the opening of a South African office for UK-based Marlborough Stirling;
• CCH launched a consulting division;
• Minotaur Information Systems established six separate companies under a new holding company, Minotaur Holdings;
• it looks as if Dimension Data will be shedding two of its enterprise resource planning interests, with Solit SA taking over Lawson implementations with a local Lawson subsidiary also being established, and Marcam, which was internationally acquired by Invensys earlier this year, moving away from the fold as well.

• the resignations of AT&T`s senior executive Leo J Hindrey (ex TCI), 3dfx CEO L Gregory Ballard, British Telecom director, John Swingewood, Peter Dunning, Luke Little and Dennis Cunningham, all senior VPs at Oracle; and
• the appointments of Rolla Huff as president and CEO of MGC Comms, Charlie Callahan as senior VP of Baan Consulting; and J Brad Sharp as president and executive VP of Sterling Commerce.

Additionally, it looks as if Deutsche Telekom is to sell its stake in Global One to France Telecom, if the "money" is right.

[International]

International acquisitions, mergers, joint ventures etc (see attachment).

Other international news included:

• the announcement by Computer Horizons that it will offer public ownership of two of its business units next year; and
• Bill Gates was named Visionary of the Year, and Amazon.com as the best e-commerce site by Wired magazine at its first annual Rave Awards gala.

We saw excellent figures from Applied Micro Circuits, Broadcom, Digital Lightwave (back in the black), Flextronics, i2, IDT (back in the black), Latitiude Comms, Novellus Systems, Prokom Software SA, SanDisk, TenFold and Yahoo!

Losses came from About.com, AdForce, Allaire, AMD (better than expected), Aseco, Aspec Technology, Bitwise, Broadbase Software, Celeritek, COMSAT, Dataware Technologies, Devtek, DoubleClick, E*Trade, Exabyte, Global DataTel, HEI, Intevac, Iomega, Metricom, Micron Technology (better than expected), Multiactive Software, NetGravity, Object Design, ODS Networks, PairGain, Premisys Comms, Quantum, Redback Networks, Robocom, Silknet Software, Telesoft, Trident Microsystems, USA Technologies and USinternetworking.

Good numbers were recorded by Altera, Apex, Avant!, Computer Network Technology, Cree Research, DSP Comms, E-TEK Dynamics, ECCS (back in the black), Esker, Exponent, Gentner Comms, Giga-tronics (back in the black), Informatica (back in the black), Integrated Device Technology, International Network Services, Iona Technologies (back in the black), Linear Technology, Mercury Interactive, Mincom (back in the black), MIPS Technologies, MMC Networks, Rambus, Rational Software, RSA Security, Satyam Infoway, SSTI, Sun Microsystems, Timberline Software, Tollgrade Comms, Trident Media Group and Veritas Software.

Satisfactory results came from ADP, Intel (but well below expectations), Essex, Motorola, SunGard Data Systems, Unisys and Zing Technologies.

Mediocre returns were reported by Apple Computer, CRC Group, Dallas Semiconductor, Honeywell, Interactive Technologies, KLA-Tencor, MSB International, Oc'e, Printronix and SofTech.

Very poor results came from Printware and Seagate (but much better than expected).

Other financial news included profit warnings from BMC Software, GSE Systems, NEON Systems, Hi/fn, Iomega (also job losses announced), JDA Software, Merisel, MMC Networks, Motorola, Persistence Software, SAP, Savoir Technology Group, Storage Technology, Structural Dynamics, Theglobe.com, Unisys and Xerox. There was also share split announcements from QI Technologies, Telesciences, Timberline Software and Veritas Software; and very successful IPOs by Breakaway Solutions, Calico Commerce, E-Stamp, Interwoven and Jupiter Comms.

Locally

Accord (+26.9%)
Brainware (-27.3%)
Connect (-33.3%)
Datatec (+24.3%)
Digicore (+26.7%)
Grintek (-22.7%)
Jasco (-29.1%)
Log-Tek (-30.8%)
M-Web (-29.9%)
Micrologix (+42.9%)
MMW (-54.2%)
Paracon (+31.5%)
SecData (-45.9%)
Smacsoft (+25%)
Stantronics (-35.3%)
Streamworks (+33.3%)
ValueCom (-28%)
Y2Ktec (-33.3%)

Internationally

DSP Comms (+64.5%)
Consolidated Graphics (-27.2%)
Egghead (+72.5%)
i2 (+25.9%)
Intergraph (-37%)
Iona Technologies (+90.8%)
Legato (+26.5%)
Lockheed Martin (-26.1%)
Ortel (+62.7%)
Peerless Systems (-26.7%)
Structural Dynamics Research (-33.6%)
Siebel (+27.5%)
SSA (+40.6)
Unisys (-44.6%)
Vantive (+32.4%)
Xerox (-35.9%)

Fujitsu has outlined its plans to become the world`s number three IT supplier, following its recent activities with Siemens. The plans seem to include some form of relationship with Sun Microsystems, one of its Sparc technology partners.

Locally, E-Data is finalising a deal with US-based E*Trade, an online financial services provider, and the Dimension Data/Comparex strategy now seems to involve Nedcor, with resolution "promised" within two to three weeks.

And in a UK survey endorsed by the UK Institute of Directors, indications were that almost half of the directors in Britain have no interest in learning more about the Internet or e-commerce, and that almost a third of them said they made decisions on IT developments without being briefed on technology. I wonder how the results would compare if a similar survey was conducted in SA?