EY  - View from the top: Q3 13 early view

View from the top: Q3 13 early view

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Our early view of third quarter 2013 key performance indicators (KPIs) for the top 100 global technology companies (with 40% reporting) shows little promise for a near-term return to top-line growth.

Once again, growth driven by the five megatrends (mobile, social, cloud, big data analytics and accelerated technology adaptation) appears to have been offset by the disruption they’re causing in legacy system sales.

Slowing during Q313 in the prolonged decline of PC sales suggested that Q213 might have been the “bottom.”

Top 100 technology companies’ key performance indicators (KPIs), with 40% of companies reporting

EY's Top 100 technology companies' key performance indicators chart

Q3 13 highlights

  • With 40% of the top 100 global technology companies reporting Q313 results so far, aggregate sales increased 7% year-over-year (YOY). But these companies reported similar increases in Q213 and Q113, while YOY aggregate sales for the overall 100 companies still declined in these periods, suggesting another overall sales decline for the third quarter.
  • Aggregate operating income grows 12% YOY, compared with 5% for these 40 companies in Q213 and 4% in Q113.
  • Once again, declining demand for legacy products and services appears to be offsetting growth from the innovative megatrends: mobile, social, cloud, big data analytics and accelerated technology adaptation.
  • Technology IPOs continue to grow, as proceeds raised and average proceeds per deal both nearly double YOY.

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Top 100 technology companies' key performance indicators (KPIs), with 40% of companies reporting

EY's Top 100 technology companies' key performance indicators chart

Note: all currency references are in US dollars, unless otherwise indicated.
Source: EY analysis of Capital IQ data, accessed 28 October 2013.

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