Tech firms' growth, profit outlook less rosy

will lead the parade of tech companies reporting financial results for the quarter ended Sept. 30. The tech giants also will issue their near-term forecasts. As the wider financial market meltdown continues to unfold, pessimism reigns. Expectations are solidifying that the tech sector will pare back revenue and profit forecasts for the fourth quarter and next year. "Most companies are going to factor in the turmoil in the global economy when they give out their near-term forecasts, as a matter of prudence," says Sid Parakh, tech stocks analyst at McAdams Wright Ragen. Research firm iSuppli on Thursday reinforced that notion by trimming its forecast for 2008 worldwide semiconductor revenue to $280 billion, an increase of 3.5% compared with 2007. In August, iSuppli had forecast 4% year-over-year growth. But it could get much... [read full story]