Software Top 100 Quarterly Update: strong fourth quarter

29 March 2010 , Written by Balder Verberne
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Revenue Trend in the Software Top 10
Rank Company Q3-Q4 Trend Q4-Q4 Trend
1 Microsoft 47% 14%
2 IBM 16% 1%
3 Oracle 16% 4%
4 SAP 27% -4%
5 Ericsson 26% -13%
6 Nintendo 115% -9%
7 HP 1% 8%
8 Symantec 5% 2%
9 Nokia Siemens Networks 31% -17%
10 Activision Blizzard 121% -5%

The software industry saw revenues climb by 41% in Q4 2009 compared to the previous quarter. The fourth quarter is traditionally the best quarter in the software industry, so this upswing is no surprise. The year-end revenue-rally ended slightly below Q4 2008 (-2%), a signal that the economy is yet to recover from the economic downturn.

Game makers Nintendo and Activision Blizzard stood out among fellow software publishers, with revenue growths of over 100% compared to Q3. Christmas sales of video games suffered from economic distress, resulting in a negative Q4-Q4 trend: -7%.

Microsoft, the world's largest software company, had a great quarter as well; the introduction of Windows 7 brought the company record sales figures. IBM, with a more diversified software portfolio, reported relatively smooth revenue developments; Big Blue saw revenues increase 16% compared to Q3, and 1% when compared to the prior year period.

Telco suppliers Ericsson and Nokia Siemens Networks suffered as telco operators postponed investments in their infrastructure: revenues declined double-digit.

Forecast
In the first months of 2010 Western economies will shake off the dust of the crisis; we forecast modestly higher revenue figures (1-3%) compared to the same period last year.

 

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