Schmidt: Google Ready To Begin Spending Again
Posted on: Friday, 16 October 2009, 12:50 CDT
Google’s chief executive on Thursday announced that the worst of the economic recession had passed.
"Google had a strong quarter -- we saw seven percent year-over-year revenue growth despite the tough economic conditions," said Eric Schmidt.
"While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future."
Google reported a third quarter net profit of $1.64 billion, or $5.13 per share, up from $1.29 billion, or $4.06 per share during the same period in 2008.
Google said the positive signs would translate into growth for the company. The Internet giant said it would change course from cutting employees during the past two quarters and begin hiring more than a thousand more.
What’s more the company already has its sights on spending more money on new equipment and business acquisitions.
"We've been doing very well on the cash generation front throughout this full year," Schmidt said. "Cash gives us operating flexibility."
“We're open for business in making strategic acquisitions, both large and small."
Google’s growth can be attributed to increased ad sales on its search engine as well as profits from its video-sharing Web site YouTube.
Schmidt referred to the company’s acquisition of YouTube and Internet ad firm DoubleClick, saying they "look as though they will be incredibly successful."
On Wednesday, online tracking firm comScore reported that Google saw its share of the US search market increase to 64.9 percent in September from 64.4 percent in August.
What’s more, Google’s Android mobile operating system is beginning to see upward growth as it has been adopted by every major wireless carrier in the US.
"Android's adoption is clearly about to explode," Schmidt said. "This is a very critical period."
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Source: RedOrbit Staff & Wire Reports
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