On the mend
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The outlook for the technology industry continues to improve. In November 2002, the Infoconomy Index climbed to -4.8% from -6.4% in October.
The outlook for the technology industry - at least at a global level -continues to improve. In November 2002, the Infoconomy Index, which tracks collective revenue change at the world's 200 largest technology companies, climbed to -4.8% from -6.4% in October.
Impressive quarterly results from two of the industry's bellwethers - Cisco and Dell Computer - helped fuel that steady move out of recession. Revenues at networking equipment vendor Cisco grew 9%to $4.8 billion in the company's latest quarter, while at systems vendor Dell revenues jumped 22% to $9.1 billion in the same period.
Fortunes also improved at Hewlett-Packard. While revenues actually dropped slightly by 1% to $18.0 billion in the closing three months of the company's financial year to 31 October, this measures up favourably with an 11% fall in the preceding quarter.
There was a similar picture at some of the US's largest IT services companies. Revenues at EDS and Computer Sciences were down, by -3% and -1% respectively, but that is still more positive than the industry-wide rate.
European services companies had less to cheer about. Quarterly revenues at Cap Gemini Ernst &Young dropped 14%, underscoring the fact the performance at Europe's top technology companies (running at an average -6%) continues to slide.
However, with most companies now comparing current performance with deeply negative figures a year ago, the global index looks set to creep above the zero line in sometime in the Spring of 2003.
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