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Eric Schmidt, Google's chief executive, warned investors yesterday that the company's high profit margins might come down. And he said the company planned to increase its capital spending sharply. But in an interview, he said margins were higher in the last quarter because the company simply could not spend money fast enough.
"Our revenue growth appears to be outpacing our ability to hire the talent we need," he said. Google increased its staff in the quarter to 3,482 full-time employees, from 3,021 at the end of December.