Reporting season in the US has thrown up its share of surprises with Apples third quarter (April to June) report showing another round of strong sales and profit, but investors have high expectations of the tech giant and shares took a dive as the longevity of iPhone sales is questioned; but also amid demands for more details on sales of the much maligned iWatch.
Amazon shares however went in the opposite direction when it shocked markets with a surprise profit.
The Australian share market lacks the sophistication of the technology giants of Wall Street but the positive results did have a mild impact locally. The optimism flowed through but it pushed up against Australia’s traditional energy and commodities stocks which are mired in weakening prices. The sectors are stark in their contrasts and it shows us how narrow the Australian industrial base has become in an age of highly profitable software innovation.
Locally Telstra has invested in enepath, a Singapore based group who provide trader voice technology, M2 Group has moved to majority ownership in Aggregato Global and Speedcast International has acquired NewSat’s Teleport and Satellite Services business from its receivers.
Doing deals
Telstra Limited
(ASX:TLS)has invested in enepath, a Singapore based group who provide trader voice technology for the financial services sector. enepath uses its Adaptive Media Platform to deliver critical trader voice solutions and applications to trading rooms around the world.
Telecommunications company M2 Group Limited
(ASX:MTU)has moved to majority ownership in Aggregato Global. The asset is described as a specialist provider of prepaid international telecommunications services with a large retail distribution network.
Speedcast International Limited
(ASX:SDA) has acquired NewSat’s Teleport and Satellite Services business from its receivers. The satellite service provider says the assets are in Adelaide and Perth and the company will also retain some 20 key employees.
Broadband and enterprise systems provider BigAir Group Limited
(ASX:BGL) plans to expand its managed services solutions through the acquisition of Applaud IT. BigAir will buy Applaud for a cash consideration of $1.2 million and the deal is expected to be tied up before the end of this month.
Networking
Hutchison Telecommunications Limited’s
(ASX:HTA) 50 per cent owned Vodafone Hutchison Australia is advancing its network upgrade. The telco says it has reached a major milestone in its core network upgrade with all customers now using the new network for 4G data sessions.
Shares in OBJ Limited
(ASX:OBJ)have risen more than 15 per cent in morning trade after announcing the wider roll-out of its technology. OBJ says the results of the SK-II Eye Wand market launch across key Asian markets have been excellent and exceeded P&G expectations. OBJ has advised this response to this first OBJ product has now resulted in a further expansion of the current relationship with SK-II and P&G.
1-Page Limited
(ASX:1PG) has renewed six client contracts in June for its innovation and assessment platforms. The cloud-based human resources company says such a sharp increase in new users demonstrates the platform is operating efficiently. 1-Page believes last month was a pivotal month in the history of the company’s customer relationships.
Strategy
Telstra Limited
(ASX:TLS) has laid out a vision for its future with plans to increase total capex investments in its mobile network to 15 per cent of sales for the next two years. The telco’s CEO Andrew Penn made the comments as part of a CEDA event yesterday committing another half a billion dollars for mobiles.
Integrated Research Limited
(ASX:IRI) has also forecast a solid profit for its full year accounts with profit after tax in the range of $13.5 to $14.5 million compared to $8.5 million the year before. The enterprise software company says sales were strong with the falling Aussie dollar also supporting the business.
