Weekly financials wrap up - Tech stocks arm wrestle

Weekly financials wrap up - Tech stocks arm wrestle

Technology companies have spent the week leveraging stocks and company share to grapple for the elusive competitive advantage.

SNS breaks free of Austrim

Industrial giant Austrim has sold its shares in Secure Network Solutions (SNS), effectively freeing the Australian IT security company to pursue its own directions, said an SNS spokesperson.

Austrim sold the shares to a number of local and foreign institutions resulting in a $690,000 shot in the arm for SNS, which has also recently received a $2.1 million R&D grant from the Department of Industry, Science and Resources.

SNS' managing director claims the sale positions the company strongly in the international market, further bolstered by a joint venture with Hong Kong Telecom launched this month.

SNS' shares traded at $1.89 this week.

Davnet gains control of QAI

Australian telecommunications company Davnet has staked its claim on QAI Australia after announcing its unconditional takeover offer on 1 July 1999. With its pre-existing entitlement of 23 per cent or 317, 421 shares, Davnet has secured a further 42.9 per cent of the company. Totalling 65.9 per cent (909,509 shares) the stake in QAI will see Davnet appoint 4 directors to the QAI board.

Davnet executives cite a number of synergies between the companies, which will fast track Davnet's entry into the voice telephony market, access to both company's existing customer base, increased revenues and a closer relationship with Cable & Wireless Optus.

Furthermore, Davnet has a controlling hand in QAI's telecommunication's subsidiary Southern Cross Telecommunications, a switches reseller of telephony services.

ATC buys Melbourne PC maker for $ and sharesAustralian Technology Corporation (ATC) has announced the acquisition of Melbourne-based PC and IT peripherals manufacturer and distributor Microtel Corporation. The cash and share settlement will see ATC own 63 per cent of Microtel.

Selling $999 and $399 computers into Harvey Norman and peripherals into 3Com, Motorola, Acer and other companies, Microtel offers ATC a stronger position in the Australian IT market.

"Through our Niche Tech subsidiary we command a healthy slice at the top end of the electronics industry, but with Microtel we will be able to expand into PC assembly and distribution by acting as the primary source of components for Microtel through our Asia-Pacific Networks," said ATC manager Dinesh Virik.

ATC's shares are trading this week at around $1.90.

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