New Phase of Economic Recovery: Tech World Rising

As the global economy mends, business spending on technology goods and services is returning -- at least that is what Ben Worthen and Don Clark claim in "Tech Spending Bounces Back as Profits Rise," published in the Wall Street Journal.

The tech world according to Cisco:

The economy has entered a new "phase of the recovery," said John Chambers, Cisco's chief executive, in a call with analysts, adding that he planned to hire up to 3,000 workers in coming quarters. "This is one of the most robust positive turnarounds I've seen in my career," he added.

The tech world according to Google:

Before he (Google CEO Eric Schmidt) got into the nitty-gritty of this year’s outlook, Google announced that revenue was up 17 percent in Q4 2009 ($6.7 billion) and up $23.65 billion for all of 2009 (for a net income of $6.5 billion).

The tech world according to NetSuite:

Having had a dreadful start to 2009, NetSuite announced record earning for the fourth quarter and year ended 31st December, 2009. From the release:

“Total revenue for the year was $166.5 million, a year-over-year increase of 9%. Total revenue for the fourth quarter was $43.0 million. Revenue from the Americas for the fourth quarter of 2009 was $35.0 million, while revenue from international regions was $8.0 million. NetSuite added approximately 295 new customers in the fourth quarter.

The tech world according to IBM:

Moreover, IBM's full-year 2009 earnings of $10.01 per share were up 13% year over year, and net income of $13.4 billion rose 9% from fiscal year 2008. Earnings for the year were a record, despite the worldwide recession. Full-year earnings surpassed the Zacks Consensus Estimate of $9.88 per share, as well as the company's own guidance of $9.85 per share.

The company's spectacular amount of new services contract signings and a pick up in corporate IT spending figured into the improved guidance for fiscal 2010. Historically, IBM has raised its guidance for almost every quarter in the last two years. For fiscal year 2010, the company again raised its EPS guidance to $11 per share, up from a previously expected $10-$11 per share range last month.

The tech world according to Microsoft:

Microsoft posted a bigger-than-expected 60 percent increase in quarterly profit on Thursday, helped by strong sales of Windows 7, and said it expected business technology spending to recover this year.

The company said net profit came to $6.7 billion, or 74 cents a share, up from $4.2 billion, or 47 cents a share, a year earlier.

The tech world according to Apple:

For the three-month period ending Dec. 29, 2009, Apple posted earnings of $3.4 billion, on a revenue of $15.7. Compared to the year-ago figures of $11.9 billion, that amounts to $2.3 billion in net quarterly profit.

Apple shipped 8.7 million iPhones — more than double compared to the year-ago quarter — and 3.4 million Macintosh computers, up 33% from a year earlier.

Consider it a tech revival. Are you ready?

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