Workgroup is resurrected

The massive loss from Dimension Data and the EEC news re Microsoft and the anti-trust lawsuit dominated the international world of IT and telecommunications last week.

[VIDEO]At home, the re-emergence of Workgroup and the flood of interim and local results stole much of the local headline space. The week was very quiet internationally, due to the Thanksgiving holiday in the US.

• we saw good full-year results from Spescom (back in the black and revenue also up);
• disappointing year-end figures from Reunert (revenue up but earnings down);
• a full-year loss from Dimension Data (revenue up but below expectations and a huge loss of $1.7 billion after goodwill amortisation and exceptional items);
• disappointing interims from M-Cell (revenue well up but earnings down);
• poor half-year numbers from Softline (revenue and profit both well down);
• an interim loss from C-Technologies (revenues also well down);
• profit warnings from Affinity Logic and Dimension Data; and
• the successful application for the provisional liquidation of Sempres International.

[Local]

Other local news included:

• an MBO by Impress Software South Africa from its German parent;
• the announcement that Wooltru has agreed in principle to the Affinity Logic MBO for a sum between R45 million and R50 million;
• the conclusion of the sale of Iscor`s shares in AST to four black empowerment groups, as yet unnamed; and
• the resurrection of Workgroup from the ashes of Siltek, following its acquisition by ex-Siltek CEO Dave Lello and a consortium that includes Pinnacle Micro and the IMF Group.

• we saw the resignation of Bill Meukom, Microsoft`s general counsel and the person who headed its legal team during the anti-trust case;
• the announcement that the French Government had, yet again, invested in Groupe Bull, this time for $88 million;
• the name changes of CreoScitex to Creo Products, and Terracom to EurAsiaCom;
• the re-emergence of Iridium Satellite from the defunct Iridium company; and
• the news that the European Commission has nominated 20 and 21 December for Microsoft to defend itself against anti-trust charges.

Additionally, look out for the possible closure of the UK arm of ExciteAtHome; and the possible merger of Palm and Handspring, although the "rumour" has been vehemently denied by both parties.

[International]

Other international news included:

• the resignations of Guy de Ppanafieu, chairman of Groupe Bull, and Nick Tanzi, CEO of Metromedia Fiber Network; and
• job loss announcements from Agfa, AT&T, Epcos AG, KPN, Network Access Solutions and Verizon Comms.

The week was very quiet internationally, due to the Thanksgiving holiday in the US.

Paul Booth, MD, Global Research Partners

We saw good numbers were recorded by Docucorp (back in the black), Software Spectrum (back in the black), Stratabase and Telekom Austria; and satisfactory ones by American Software (back in the black), EMJ Data Systems and Logility (back in the black).

Mediocre returns came from Agfa, Analog Devices, Ceyoniq, Dataram, Dycom Industries, Intelek, Michael Bailey Associates and SemTech; while very poor results came from SCB Computer Technology (but back in the black).

Losses came from Alterian, Avery Comms, Barak, CellPoint, CME Telemetrix, Cognicase, Comdial, Creo Products, Datawatch, Descartes Systems Group, DTVN Holdings, EasyScreen, Eltek, Epcos AG, Frontec AB, Glentel, Higham Systems Service Group Plc., Information Analysis, International FiberCom, IT IS Holdings Plc., Loudcloud, MIS AG, Network-1 Security Solutions, nCipher, NTT, Nuvo, Orion Technologies, Portal Software, PRI Automation, Pumatech, Rapid Technology Group, Redstone, Silverline Technologies, Softbank, SVI Solutions, Technical Comms, Telebyte, Ubizen NV, Ultradata, Universo Online SA and VA Linux.

Other financial news included profit warnings from Analog Devices, Epcos AG, Microsoft, NTT and Portal Software; a share split announcement from Activision; and an initial IPO filing from ManTech International, an IT and technical services company. Additionally, Brokat Technologies, the German software company, filed for insolvency in Germany. (The SA operation has only been open for a few months).

Locally

Acuity (-52.9%)
Aqua Online (-29.4%)
E-Data (+60%)
EC Holdings (-14.3%)
Ixchange (+60.3%)
Paracon (-14.3%)
Pinnacle (+100%)
Sekunjalo (+25%)
Softline (-18.4%)
Stella Vista (-17.6%)
Unihold (-21.4%)

Internationally

Activision (-37.4%)
Arel Comms & Software (+40.3%)
Densitron Technologies (-35.9%)
Global Crossing (+36.3%)
INT Media Group (+52.3%)
MDC (+33.7%)
Network Plus (+45%)
Proxim (+34.3%)
Silverline Technologies (+46.7%)
VerticalNet (+39.6%)

This week should see some more local results and the final local flurry of activity before the long summer break that, for many, starts when the schools close at the end of next week.