{"id":13383,"date":"2012-05-23T15:38:06","date_gmt":"2012-05-23T13:38:06","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=13383"},"modified":"2012-05-23T16:23:48","modified_gmt":"2012-05-23T14:23:48","slug":"tech-stock-watch-gijima-suffers","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/13383\/tech-stock-watch-gijima-suffers\/","title":{"rendered":"Tech stock watch: Gijima suffers"},"content":{"rendered":"

Under-pressure ICT group, Gijima<\/a> declined 12.5% in afternoon trade on the JSE<\/a> on Wednesday (23 May), with the group having more than 20% shaved off its share price in recent weeks.<\/p>\n

On a day when global markets have tumbled, including the All Share Index (off 1.28%), as a result of negative sentiment on the EU debt crisis, Gijima declined 12.5% – or 5 cents – to 35 cents.<\/p>\n

A local dealer noted that trade in the company\u2019s shares were rather thin, while global markets were suffering amid issues in the Eurozone.<\/p>\n

Earlier in the week, Gijima said it had secured the extension of its long-term debtors securitisation funding programme, initiated in July 2006.<\/p>\n

However, last week (15 May), the group said it would cut its staff quota by between 8% and 12% as part of a streamlining exercise.<\/p>\n

Gijima employs approximately 3,080 people, which means that the group\u2019s actions could see between 245 and 367 people lose their job.<\/p>\n

The group said in a statement that the ICT industry landscape has changed dramatically, with ICT spend globally under pressure while commoditised offerings have become the most price-sensitive.<\/p>\n

\u201cAt the same time, clients, particularly those in the financial sector, have come under pressure to be even more competitive following global acquisitions,\u201d the group said.<\/p>\n

In its most recent earnings report \u00a0(21 February 2012), the group pointed to a return to profit, posting a diluted headline earnings per share of 3.11 cents for the six month ended December 2011, after a loss of 28.13 cents a year ago.<\/p>\n

Revenue increased by 7.5% to 1.337 billion, with earnings before interest, tax, depreciation and amortisation reflecting an 83.5%, at R78.2 million.<\/p>\n

In other tech stocks, Business Connexion<\/strong><\/a> was down 19 cents – or 4.05% – to R4.50, while Datatec (DTC)<\/a> was off 80 cents or R1.76, to R44.70. The information and communications technology (ICT) group said on Tuesday that its 100% subsidiary, Westcon Group<\/a>, has acquired the 33.1% interest in its African subsidiaries (Westcon Africa).<\/p>\n

The transaction does not apply to Westcon SA, which remains under the ownership of Datatec (74%) and its BEE partner, the Mineworkers Investment Corporation (26%).<\/p>\n

The rationale for the transaction is to achieve full ownership of the African businesses in the Westcon Group.<\/p>\n

Hardware distributer, Mustek<\/strong> lost 13 cents – or 2.11% – to R6.02 and telecoms and ICT group, Reunert<\/strong><\/a> shipped R1.57 – or 2.29% – to R67.10. The latter is expected to publish its interim results on Monday (28 May).<\/p>\n

It expects normalised headline earnings per share will be between 11% and 17% higher for the six months ended 31 March 2012, from 260.7 cents previously.<\/p>\n

The group anticipates headline earnings per share will be between 12% and 18% higher for the period, from 262.7 cents in 2011.<\/p>\n

MTN<\/strong><\/a> was modestly lower, off 38 cents to R132.80, while Vodacom declined 72 cents to R103.78.<\/p>\n

Telkom<\/a> slipped 13 cents lower to R23.80.<\/p>\n

Related articles<\/strong><\/p>\n

Gijima secured long-term funding extension<\/a><\/strong><\/p>\n

Gijima to cut staff content by 8-12%<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Under pressure ICT group, Gijima declined 12.5% in afternoon trade on the JSE on Wednesday, with the group having more than 20% shaved off its share price in recent weeks.<\/p>\n","protected":false},"author":9,"featured_media":6423,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[765,641,26,28,1097,65,27,2900],"class_list":["post-13383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-datatec","tag-gijima","tag-headline","tag-mtn","tag-mustek","tag-telkom","tag-vodacom","tag-westcon-group"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/13383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=13383"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/13383\/revisions"}],"predecessor-version":[{"id":13388,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/13383\/revisions\/13388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/6423"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=13383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=13383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=13383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}