Until September, the U.S. tech industry appeared insulated from the year-long economic slowdown. Most of the 20 largest U.S. tech firms reported solid second-quarter earnings in July and August, and they were projecting continued growth in sales through the year-end. Then Wall Street crashed. Here's the latest word from tech executives about current market conditions and the outlook for the rest of this year. (To view the slideshow version of this story, click here.)

Verizon anticipates future growth

On October 27, Verizon reported a strong third quarter, including total operating revenue of $24.8 billion, up 4% from the same quarter a year ago. Net income was $1.7 billion, up 31% from the same quarter a year ago.

"Although the capital markets and economy may present challenges, we will continue to execute on our business plan and invest for future growth," said Verizon Chairman and CEO Ivan Seidenberg. "We increased the dividend 7% this quarter, reflecting confidence in continued growth opportunities. Verizon has a great set of assets and an employee team focused on creating value for our customers and shareholders."

Microsoft expects to keep growing

Thanks to solid enterprise software and Xbox 360 sales, Microsoft posted record revenue of more than $15 billion for the fiscal quarter that ended September 30, 2008, a 9% increase from the same quarter a year ago. Net income was $4.4 billion, compared with $4.3 billion in the same quarter a year ago.

Microsoft executives said they saw a slowdown in sales in September and October, and CFO Chris Liddell noted on October 23, 2008 that Microsoft would adjust downward its guidance for the second fiscal quarter of 2009. Still, Liddell said "we feel extremely good about our relative competitive position and our ability to continue outgrowing IT spend. We believe our exceptionally strong cash flow, product pipeline and financial strength will allow us to weather economic conditions well."

AT&T predicts stability

Wireless subscribers and IP data are driving sales for AT&T, which posted third-quarter revenue of $31.3 billion, up 4% from the same quarter a year ago. Net income was $3.2 billion, up from $3.1 billion a year ago.

"While the macro environment presents challenges, our business is more resilient than most," said Rick Lindner, senior executive vice president and CFO of AT&T, on October 22, 2008. "We have great assets. We're growing revenues. We continue to have opportunities to reduce costs. Our management team is experienced and tested, and our execution continues to produce good results. Wireless subscriber growth and data growth are both very strong. . . . Business trends continue to be stable."