EY  - View from the top: Q4 13 early view

View from the top: Q4 13 early view

  • Share

While there are some bright spots, our “early view” analysis of key performance indicators (KPIs) in the technology sector during the fourth quarter of 2013 suggests a steeper aggregate sales decline than in the previous quarter. Our analysis includes results from 33 of the global top 100 public technology companies.

Additionally, there is a slower aggregate operating income growth — if not an outright decline. The culprits are: slowing smartphone growth amid increasing competition, declining PC shipments, and software and services markets still working through transformative change.

Top 100 technology companies’ key performance indicators (KPIs), with 33% of companies reporting

EY chart showing technology companies KPI, Q413

Q413 highlights

  • With 33% of the top 100 global technology companies reporting Q413 results so far, aggregate sales increased 2% year-over-year (YOY). But these companies reported bigger increases in the previous three 2013 quarters, suggesting a Q413 sales decline for the overall top 100.
  • Aggregate operating income declined 2% YOY, compared with a 7% increase for these 33 companies in Q313 and 9% in Q213.
  • We saw slowing smartphone growth combined with declining demand for legacy products and services disrupted by the innovative megatrends: mobile, social, cloud, big data analytics and accelerated technology adaptation.
  • Technology IPO growth soared in Q413. Compared with Q412, proceeds raised are five times higher, and average proceeds per deal nearly doubled.

Top 100 technology companies’ key performance indicators (KPIs), with 33% of companies reporting

EY chart showing technology companies KPI, Q413

Source: EY analysis of Capital IQ data, accessed 28 January 2014.

×

Top