Technology shares tumble in market meltdown

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The global economic meltdown filtered through to the technology industry with a 20% fall in the IT-heavy NASDAQ index last week. John Stokdyk reports.

Just before Black Friday struck, German ERP software giant SAP issued a trading statement warning that its sales would fail to hit forecasts because customers were putting orders on hold as a result of the growing financial crisis. SAP's shares fell 16% on the Frankfurt exchange after the announcement, and rivals Oracle (10%) and Microsoft (6%) both experienced drops.

On-demand CRM software house RightNow also predicted "negative cash flow" from operations in the third quarter due to lengthening payment terms and slower cash collections, which resulted in a 14% drop in its share price to a three-year low.

In the UK, FTSE-listed Sage al...

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