Technology Fast 500
Total Page:16
File Type:pdf, Size:1020Kb
2001 Deloitte & Touche Technology Fast 500 www.fast500.com Leading the Way It’s been a tough year for the technology sector, and the com- Industry segments represented were relatively stable from panies on this year’s Deloitte & Touche Technology Fast 500 last year, with software companies again leading the way are not immune to the effects of the tech correction and the with 221 companies or 44 percent of the list. Notably, given slowing of the U.S. economy. Indeed, some Fast 500 compa- the malaise in the field, communications companies jumped nies have seen their businesses slow significantly in 2001 and from nine percent to 13 percent of the list.While Internet are struggling after five years of dramatic growth (the 2001 companies are prominent at the top of the list, as a group, Fast 500 measures five-year growth through fiscal 2000). they slid from 17 percent to 15 percent. With that said, this year’s Technology Fast 500 companies, as Geographical Shifts a group, found a way to grow even faster than their prede- After a one-year hiatus, the West resumed its position at the cessors.The 2001 Technology Fast 500 averaged a five-year head of the technology class, accounting for 32 percent of percentage revenue growth rate of 6,184 percent, compared the Fast 500, up from 27 percent. California was, by far, the to 3,956 percent for last year’s list.The top five companies biggest contributor to the list with 132 companies, including grew an average of 93,496 percent, compared to 59,367 percent two of the top three companies, calling the Golden State for last year’s top five. Revenues for this year’s leader of the home. Canada maintained the momentum from its debut pack, Internet auctioneer eBay Inc., grew a whopping 115,874 last year with a nine percent showing. percent, from $372,000 in 1996 to more than $431 million in 2000. Last year’s kingpin, Primus Communications, Inc., Adding Perspective to the Technology Downturn had five-year revenue growth of 71,257 percent, which would The Technology Fast 500 rankings are based on five-year have placed it at number seven on this year’s list.To make the revenue growth, which is not necessarily an indicator of a list at number 500, a company’s five-year revenue growth had company’s overall health. Many of the companies on the list to top 824 percent, good enough for number 404 last year. have experienced rough stretches and many will continue to do so. Still, the companies on the Technology Fast 500 grew Milestones fast because the technology they produce make productivi- This is the seventh year the Technology Fast 500 list has been ty-boosting, life-enhancing products and services, and history published. Only two companies have been on the list all seven shows us that the fastest growing companies will lead the years: Mountain View, CA-based VERITAS Software industry into prosperity. For example, this year’s top company, Corporation, a software and data management company, eBay, which pioneered the business of online auctions, has and Tampa, FL-based Intermedia Communications Inc., an revolutionized the world’s concept of marketplace. eBay’s integrated communications services provider. A spectacu- mission is “to help practically anyone trade practically any- lar achievement when you consider that each year of dramatic thing on earth.” eBay lists millions of items across thousands revenue growth serves to raise the bar exponentially for the of categories from rummage sale bric-a-brac to million-dollar following year’s growth! art.Want to buy jewelry, musical instruments, cameras, com- puters, furniture, sporting goods or tickets? How about a car List Composition or boat? They’re all available on eBay and the company’s pro- Public companies make up 62 percent of this year’s list, com- prietary platform facilitates payments and deliveries. It’s no pared to 56 percent last year and an average of 52 percent wonder that eBay’s site processed more than $5 billion in since the list’s inception in 1995. transactions in 2000. Fast 500 Companies By State/Province 2001 2000 2001 2000 Fast 500 Companies NE MW CT 11 16 CO 15 16 By Region Canada ME 1 1 IL 7 12 MA 31 38 IN 1 1 9% NH 5 4 IA 1 0 9% NJ 22 19 KS 3 6 NY 33 28 MI 1 1 West Northeast PA 11 16 MN 12 20 RI 1 1 MO 11 8 32% Midwest 23% SE OH 1 4 27% 25% WI 2 1 11% AL 0 1 FL 22 17 W 14% GA 12 14 CA 132 105 MD 21 15 NV 0 1 MS 0 1 OR 5 5 Southeast NC 10 18 UT 3 3 Southwest 19% TN 2 1 WA 18 23 VA 30 39 Canada 6% 21% SW AB 7 4 4% AZ 4 5 BC 10 10 NM 1 0 MB 0 3 OK 1 0 NS 2 0 2001 TX 23 15 ON 23 22 2000 QCMS&T–Medical, Scientific5 &6 Technical Canadian company revenues are stated in Canadian dollars. 2 2001 Fast 500 Fast 500 Companies Annual Average Research and Eligibility Percentage Growth Rate by Year The Deloitte & Touche Technology Fast 500 list is the result of research on technology companies. Sources for public and private companies that made the list include public company databases, Deloitte & Touche’s 22 regional Technology Fast 50 programs in (Thousands) North America and direct nominations. To be eligible for the Technology Fast 500, a company must meet the following criteria: 1. Be a technology company, defined as a company Fast 500 Companies Total that develops proprietary technology that con- $ Revenues by Year tributes to a significant portion of the company’s 89.7 86.2 operating revenues, manufactures a technology- 75.9 related product or devotes a high percentage of 60.4 effort to research and development of technology. 46.7 (Billions) 2. Meet minimum operating revenue requirements: • 1996 operating revenues must be at least $50,000 USD or $75,000 CD • 2000 operating revenues must be at least Fast 500 $1 million USD and CD Companies byIndustry 3. Be in business a minimum of five years. Segment 4. Be headquartered in the United States or Canada. M S & T * inner circle: number of companies outer circle: percent by industry O segment *MS&T-Medical, Scientific & Technical 2001 Deloitte & Touche Top 5 TECHNOLOGY FAST 500 WINNERS eBay Inc. Five-Year Revenue Growth: 115,874% Margaret C.Whitman, CEO Headquarters: San Jose, CA www.ebay.com 1 Nasdaq: EBAY hat started six years ago as a haven for collecta- eBay grows by continually evolving.In the last year, 35 percent of auction items.And,a new area called Wbles has blossomed into an Internet phenome- it added big-ticket auction categories such as real eBay Stores allows merchants to sell their products to non.Today,eBay’s 34 million subscribers can buy and estate and automobiles.In fact,eBay considers itself eBay users.Steady revenue streams from sources like sell everything from record albums to airplanes.(In the largest Internet auto site.CEO Margaret (Meg) C. the Billpoint payment system also bolster the compa- August,a business jet sold for $4.9 million,making it Whitman told Industry Standard in August,“I think ny’s shipping services and advertising sales. the highest known sales price for any single item on that was pretty surprising to us.This was a Web site Earlier this year,Whitman announced that eBay is eBay.) The company expects nearly $9 billion in goods based on small shippable items.Cars are hardly small aiming for $3 billion in revenues by 2005.If the com- to be sold via eBay this year.Its 115,874 percent five- and hardly shippable.” pany’s savvy growth strategies over the last six years year revenue growth rate has placed eBay at the top eBay has branched out into non-auction sales as are any indication,Whitman may well reach her goal. of the Technology Fast 500 list. well.A fixed-price sales option is available for nearly www.fast500.com 3 2001 Deloitte & Touche Top 5 TECHNOLOGY FAST 500 WINNERS InfoSpace, Inc. Five-Year Revenue Growth: 107,704% Naveen Jain, CEO Headquarters: Bellevue,WA www.infospace.com 2 Nasdaq: INSP hen Naveen Jain founded InfoSpace in 1996,the Meanwhile,InfoSpace’s Merchant Services product to point out that the companies that would be suc- Widea of conducting business from a cell phone suite helps millions of traditional and online merchants cessful in this new economy would be the bricks-and- bordered on science fiction.But that didn’t stop Jain provide new means of payment processing,promotions, mortar companies that use the Internet as a channel from targeting the mobile computing industry for shopping and fraud detection,among other services. rather than as a replacement for their bricks-and-mortar InfoSpace’s Internet infrastructure services. InfoSpace’s early penetration into the wireless and operation,”he says. Today,leading domestic and international wireless commercial Web markets laid the groundwork for the InfoSpace expects its customer base to swell once carriers including Verizon,AT&T,Cingular and more company’s impressive revenue growth,which soared from advanced broadband networks emerge.“With enough than 3,200 Web sites,rely on InfoSpace’s platform and $199,000 in 1996 to more than $214 million in 2000. bandwidth,you won’t even need to own a PC,”Jain applications for consumer services ranging from com- According to Jain,the company escaped the recent says.“Your cell phone will become a network device munication and personal information management dot-com slump by focusing on the basics that have that downloads information that is then displayed on products to speech applications.