Over two thirds of CFOs at leading U.S. technology businesses expect sales revenue at their companies to increase this year, according to a survey by accounting firm BDO.
Last year, only 30 percent of the CFOs polled forecast increased sales revenue for 2009. Overall, the average anticipated sales gain in 2010 is 8.7 percent, up from 1.6 percent in 2009. Sixty-eight percent of the 100 CFOs surveyed say that an economic rebound in the United States is the most important factor for driving technology sector growth in 2010, which is up from 55 percent in 2009.
In a dramatic increase from previous years, the vast majority (81 percent) of technology CFOs expect merger and acquisition activity in the technology sector to increase in 2010. Last year, only 43 percent predicted increased M&A activity for 2009, compared to 41 percent in 2008. Fifty-one percent of CFOs say the primary driver for acquisitions in todays technology market is to increase revenue and profitability, up from 34 percent in 2009 and 37 percent in 2008.
Technology CFOs are cautiously optimistic about the economy and growth in the sector this year, but they are still planning on conservative, managed growth for 2010, said Douglas Sirotta, a partner in BDOs technology practice.
Sixty-eight percent of the CFOs surveyed say that an economic rebound in the U.S. is the most important factor for driving technology sector growth in 2010, followed by consumer demand for innovative personal technology (12 percent), international growth (9 percent), demand for green technologies (8 percent) and Web 2.0 (2 percent). Last year, only 55 percent of the CFOs polled cited an economic turnaround as being the most important factor to growth.
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