Depressing Time For IT And Computer Equipment Industry, SAP
November 02, 2009 8:16 AM
While there was a positive growth in 3rd quarter Gross Domestic Product (GDP), Information Technology is still wallowing in bad times. As per the data from Bureau of Economic Analysis, investment in computer equipment tumbled 16% in the 3rd quarter when compared to what was invested in the 3rd quarter last year. Similarly, falls in investments in communications hardware (down 15%) and software (a 9% drop) were reported for the 3rd quarter.
Equally depressing are SAP AG’s (NYSE: SAP) earnings numbers. A grim 31% fall in software revenue pulled down SAP’s revenues by 9 % in the 3rd quarter. SAP also cut its full year guidance. Its shares dived as it happened for its other rivals in the software sector. However, don’t dump your IT stock yet. Forrester expects things to be better next year.
