Chief financial officers at top U.S. technology companies expect revenue to increase in 2011, including an overall revenue increase of 10.4 percent, up from 8.7 percent in
2010 and a dramatic increase from 1.6 percent for 2009.
These findings are from the fourth-annual BDO Technology Outlook Survey, which examines the opinions of 100 CFOs at leading technology companies throughout the U.S. The survey was conducted in January.
In addition, the study found that merger and acquisition activity is expected to rise, with 78 percent of CFOs forecasting an increase, including 23 percent who expect it to increase significantly over 2010. Contending with heavy competition, 78 percent of CFOs said the motivation for M&A will be primarily offensive and geared toward strategic growth.
“With liquidity improving and revenue on the rise, technology companies are poised for a strong 2011,” said Aftab Jamil, partner and national leader of the Technology and Life Sciences Practice at BDO USA. “After scaling back on R&D and operational expenses during the recession, many technology companies are flush with cash and well-positioned to spend. M&A will be a primary tool for companies looking to boost profitability through strategic growth and increased market share.”
