Silicon Valley firms facing biggest slump since 2002: Report

SAN FRANCISCO - Major companies in the Silicon Valley are suffering the biggest slump since the dot-com bust, further proving that the leading technology hub is not immune from the effects of a global economic meltdown, a new report has said.

According to rankings compiled by the San Jose Mercury News, total market capitalisation of Silicon Valley’s 150 biggest public companies plunged 32 percent to about $850 billion for the past 12 months ending March 31, the worst decline since 2002.

The newspaper’s annual Silicon Valley 150 list ranks public companies headquartered in the region on the basis of their worldwide revenues for the most recent available four quarters.

The latest rankings released Sunday also showed that the combined revenue for Silicon Valley’s top 150 companies grew five percent in 2008, the smallest annual increase since the Internet bubble burst in 2001.

The companies’ combined profits fell 52 percent for the year, the worst plunge since 2001.

The new assessment indicated that global recession hit Silicon Valley companies hard in the latter part of 2008, although many had thought earlier they could escape largely unscathed.

The aftershocks of the recession could be felt in Silicon Valley for years to come, the San Jose Mercury News noted citing experts.