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 Tammy L. Madsen: SV150 See Most Profitable Year in History: Mercury News

Thursday, Apr. 21, 2011

Tammy L. Madsen, Associate Professor of Management, was recently quoted in an article about Silicon Valley’s 150 biggest public companies that appeared in the Mercury News.  The article asserts that these companies, called the SV150, had their most profitable year in history in 2010, as measured by revenue.  The technology industry came out of recession during the year because revenue and profits increased as consumers rushed to purchase new handheld tools and corporations resumed purchasing hardware and software.  

With the case, corporations began acquiring smaller firms. Net cash spent on acquisitions rose 47 percent.  Professor Madsen believes that more of these deals are likely because mergers and acquisitions typically follow cycles.  

Companies also increased their spending on research and development, capital expenditures, and on purchasing back their own stock.  Employment still lags, though.  Wary about their spending, most companies were reluctant to invest in growing payroll.  

Read the full article here >>
Read Professor Madsen’s bio here >>

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