What tech-industry CEOs are saying about the economy

Until September, the U.S. tech industry appeared insulated from the year-long economic slowdown. Most of the 20 largest U.S. tech firms reported solid second-quarter earnings in July and August, and they were projecting continued growth in sales through the year-end. Then Wall Street crashed. Here's the latest word from tech executives about current market conditions and the outlook for the rest of this year. (To view the slideshow version of this story, click here.)

Microsoft expects to keep growing
Thanks to solid enterprise software and Xbox 360 sales, Microsoft posted record revenue of more than US$15 billion for the fiscal quarter that ended September 30, 2008, a 9% increase from the same quarter a year ago. Net income was $4.4 billion, compared with $4.3 billion in the same quarter a year ago.

Microsoft executives said they saw a slowdown in sales in September and October, and CFO Chris Liddell noted on October 23, 2008 that Microsoft would adjust downward its guidance for the second fiscal quarter of 2009. Still, Liddell said "we feel extremely good about our relative competitive position and our ability to continue outgrowing IT spend. We believe our exceptionally strong cash flow, product pipeline and financial strength will allow us to weather economic conditions well."

AT&T predicts stability
Wireless subscribers and IP data are driving sales for AT&T, which posted third-quarter revenue of $31.3 billion, up 4% from the same quarter a year ago. Net income was $3.2 billion, up from $3.1 billion a year ago.

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