Tech Cash Kingpins
Company Cash Synopsis
Microsoft $38 billion The software giant pays out $3.5 billion in dividends each year and issued a special $32 billion dividend last year. Yet the cash continues to pile up at a rate of $1 billion a month. Look for more dividends, buybacks, and acquisitions.
Intel $16 billion The world's biggest chipmaker is one of the rare tech companies that is investing in major capital projects, including manufacturing plants in Ireland and Chandler, Ariz.
Hewlett-Packard $14 billion New CEO Mark Hurd is focused on cost cuts for now. After that he's likely to invest in growth, including acquisitions in software and services.
Motorola $11.3 billion In June, the cell-phone maker said it would buy technology and engineering talent from British phonemaker Sendo. Could BlackBerry-creator Research In Motion be next?
Dell $9.8 billion The computer giant is spending $2 billion to purchase its own stock, and more buybacks are expected. It's also investing in a manufacturing site in Winston-Salem, N.C.
Oracle $9 billion It spent $10 billion in cash to buy rival PeopleSoft. With that turning into an early success, Oracle may soon be hunting for more deals. Siebel could be at the top of the list.
IBM $8.6 billion Big Blue is looking for opportunity abroad. It could use its cash to make acquisitions in emerging markets such as India, China, and Eastern Europe.
Apple $7 billion Apple is trying to use the popularity of its iPods to gain share in the PC market. While it doesn't have a history of big acquisitions, it's more likely than others to invest in developing new products.
Applied Materials $6 billion The maker of chip manufacturing equipment is using its cash to expand into services, helping clients that buy its gear. First step: In June, it bought technology from SPC Global Technologies.
Cisco $5 billion It's a sure bet that the Internet equipment maker will continue to expand through acquisition. Key growth markets include areas like Wi-Fi, telecom, and security.


Tech's Biggest Bankrolls


Tech outfits are loaded with cash. The 80 players in the Standard & Poor's 500-stock index have $229 billion in cash and equivalents on their balance sheets -- more than twice what they had at the end of 1999. Take a look at some of the sector's biggest bankrolls and how they're likely to be spent.


Also see:

Meet Tech's Cash-Rich Royalty

Posted: 7/7/05