Tech CEOs: Here's Where the Growth Lies
NEW YORK (TheStreet) -- "Caution" is the word in this technology earnings season, with heavyweights such as Intel(INTC) , Texas Instruments(TXN) , IBM(IBM) and Seagate(STX) lamenting spending softness and currency losses. Silicon Valley CEOs and CFOs, however, say there's no need to panic.
"It's not like we're heading for a global decline or anything," he said in an interview. "The important thing is that we're still growing, and we're likely to grow."
Texas Instruments, which is seen as a key barometer for the broader tech sector, nonetheless said customers are cautious about placing new orders.
Hard-drive specialist Seagate echoed this sentiment in its fiscal fourth-quarter results, released on Monday. "As we were exiting the quarter, there were a lot of macro headwinds that made it difficult to predict revenue," said Seagate CFO Pat O'Malley during an interview. "Our OEMs
O'Malley pointed, in particular, to a slowdown in China, the looming U.S. fiscal cliff and recessions in Europe as factors hurting spending.
"I don't think that anybody's predicting a 2008," he said, referring to the beginning of the biggest recession in eight decades. "It's not that the roof's coming in, but people are being prudent."
Seagate, despite wrestling with a supplier snag, still posted record revenue and unit shipments in the June quarter. "We're still putting up really solid numbers," said O'Malley.
Semiconductor specialist LSI (LSI) , which counts Seagate as a customer, posted strong second-quarter results last week, thanks partly to demand for its Flash-related products.