Technology giants ride out the downturn

Microsoft, Google and other large IT companies are looking well placed to ride out the worst of the downturn despite publishing results that disappointed financial analysts last week.

Microsoft’s share value dropped six per cent on publication of fourth-quarter earnings up 42 per cent year on year to $4.3bn (£2.2bn), though still short of analyst estimates. Revenue for the fiscal year ending June 2008 was $60.4bn (£30.3bn), 18 per cent up on 2007.

Despite the healthy figures, Microsoft slightly revised its revenue and profit forecasts for the coming year downwards, in anticipation of slower sales in the US.

Google’s share value dropped eight per cent after it too reported lower-than-expected earnings for the second quarter of 2008.

Net income was up to $1.25bn (£628m) from $925m (£464m) in the corresponding period last year, with revenue up 42 per cent to $5.37bn (£2.7bn). But both figures were down on the previous quarter, reflecting the usual summer slump.

However, online advertising revenue in both the US and Europe held up well, said the company.

IBM’s second-quarter net income rose to $2.77bn (£1.4bn) from $2.26bn (£1.13bn) a year earlier, with revenue up 13 percent to $26.8bn (£13.5bn), beating analyst estimates.

Intel’s income was also up 25 per cent, largely on the back of notebook PC sales where unit shipments are up but the average selling price down, said Gartner, leaving smaller vendors struggling to make a profit and vulnerable to acquisition.

See also:

Yahoo earnings take a hit

Income is down on last year as company gives a seat on its board to pro-buyout investor  23 Jul 2008

Overseas growth supports Vodafone through challenging times

Revenue up 19 per cent as weaker European markets are offset by strong performance further afield  22 Jul 2008

Record Mac sales drive Apple's strongest results

Third-quarter figures show a 38 per cent increase in sales  22 Jul 2008

IBM enjoys healthy revenue and profit growth

The manufacturing giant reported strong second quarter results and forecast positive performance for the full year  18 Jul 2008

Nokia profits down

Restructuring charges and slow spending on handsets see net income down 61 per cent  17 Jul 2008

Sun restructuring yields positive results

Preliminary financial results estimate fourth quarter revenue flat year on year, but profit is better than expected  16 Jul 2008

Intel chip market domination continues as notebook sales surge

Consumer notebook sales underpin Intel/AMD revenue market share  02 Jul 2008

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