Canadian Companies and Telecom Companies Shine in an Increasingly Converging Landscape
SAN JOSE, Calif., Oct. 19 /PRNewswire/ -- Occam Networks Inc. (NASDAQ:OCNW) was named the fastest growing company in North America, topping the 2006 Deloitte Technology Fast 500. A ranking by Deloitte & Touche USA LLP of the fastest growing technology, media, telecommunications and life sciences companies in North America, the program is based on percentage revenue growth over five years (fiscal year revenues 2001-2005). Occam Networks had a revenue growth rate over five years of 48,948 percent, moving from revenues of $80,000 in 2001 to $39,238,000 in 2005. Based in Santa Barbara, CA, Occam Networks (http://www.occamnetworks.com/) is a publicly held provider of broadband access products designed to enable telecom service providers to offer bundled voice, video, and data over copper and fiber optic networks. This is its first appearance on the Fast 500 ranking.
"We congratulate Occam Networks and all of our Fast 500 winners on their tremendous growth during a time when convergence is creating an extremely competitive environment," said Tony Kern, U.S. deputy managing principal of Deloitte's Technology, Media & Telecommunications (TMT) industry practice. "Numerous technology advances, the ubiquitous digitization of data, and the growth in connectivity is blurring the lines between industries and creating new opportunities for Fast 500 winners to challenge old business models with original ideas." The Top Five In addition to Number 1-ranked Occam Networks Inc., the top five Fast 500 winners include: * Number 2 -- Westport Innovations Inc. (TSX: WPT), a Vancouver, British
Columbia-based public company (http://www.westport.com/) and supplier of
alternative fuel power technologies, reported revenues of $34,436,000 in
2005, a leap of 42,945 percent from 2001 revenues of $80,000. This is
its third appearance on the Fast 500 ranking.
* Number 3 -- Litle & Co., a Lowell, Mass.-based private company,
(http://www.litle.com/), which provides payment processing and management
services to direct commerce merchants, reported revenues of $34,796,000
in 2005, growth of 33,683 percent from 2001 revenues of $103,000. This
is its first appearance on the Fast 500 ranking.
* Number 4 -- Airborne Entertainment Inc., a Montreal-based private
communications/networking company, (http://www.airborne-e.com/), which
develops and packages mobile content, reported revenues of $35,768,000
in 2005, growth of 33,328 percent from 2001 revenues of $107,000. This
is its first appearance on the Fast 500 ranking.
* Number 5 -- NewMarket Technology Inc. (OTC:NMKT) (BULLETIN BOARD: NMKT) , a
Dallas-based publicly held software company,
(http://www.newmarkettechnology.com/), which works with new, innovative
technologies and takes them to market, reported revenues of $50,138,000
in 2005, growth of 31,633 percent from 2001 revenues of $158,000. This
is its third appearance on the Fast 500 ranking.
"The fast-paced growth of this year's Fast 500 winners indicates that they are nimble, astutely managed, and dramatically innovative," said Kern. "These are key success factors in such a competitive environment." Oh Canada! Canadian Companies Boast Highest Average Percent Growth For the first time, Canada has higher average growth than all other regions -- 3,876 percent. By comparison, the U.S. average is 1,929 percent. Canadian companies have enjoyed a steady increase in average growth, from 1,597 percent in 2004 to 2,195 percent in 2005 to this year's 3,876 percent.
Canadian companies are also among the top winners. Five of the Top 10 companies on the Fast 500 list are based in Canada, and two are in the Top Five. Last year, Canada was represented by one company in the Top 10; it had no winners in the Top 10 in the previous three years.
"The ability of the Canadian companies to achieve such incredible growth primarily through self-financing is a testament to their exceptional business success in commercializing their technologies, and their great management teams leading the organization," said John Ruffolo, national leader, Canada, Technology, Media & Telecommunications, Deloitte & Touche LLP.
The West's Dominance Wanes: Canada and Northeast Moving Fast After years of the Western United States dominating the Top 10, there is a significant shift this year. In fact, Occam Networks Inc. is the only Top 10 company based in the West, compared to last year, when the Top 4 were all from California, and in 2004, when all the Top 10 companies were based in the West. This year, half of the Top 10 are based in Canada, with the other four in New England, Texas, Greater Philadelphia and New Jersey.
The West is also no longer the dominant region on the overall list. This year, the Northeast is tied with the West for companies represented on the Fast 500, with 28 percent (139 companies). The Southeast follows with 18 percent (89 companies). Canada has 11 percent (56 companies), followed by the Southwest with 9 percent (46 companies), and the Midwest with 6 percent (31 companies).
Broken down by state, California retains its position of having the most companies on the Fast 500, with 116 winners (23 percent of the list) -- 73 in Northern California and 43 in Southern California. Each other individual state has less than 15 percent of the list. Canada has 11 percent of the list.
Telecom Rules! 3,780 Percent Growth Beats All Other Industries Telecom rules in the top ranks this year. Four of the Top 10, including the Number 1 company, are in telecommunications, communications or networking. This industry segment has grown the fastest compared with other industries -- an average of 3,780 percent over five years, marking a dramatic increase from 2,242 percent last year. However, this segment makes up only 13 percent of the Fast 500 list.
Software continues to dominate the list as a whole, with 36 percent of the list (179 companies). Biotechnology/pharmaceutical follows with 15 percent (75 companies). Internet companies account for 12 percent (61 companies); computers/peripherals (29 companies) and medical equipment (31 companies) each make up 6 percent; semiconductor (23 companies) and scientific/technical instrumentation (27 companies) each account for 5 percent; and the new category of media/entertainment follows at 2 percent of the list (10 companies).
Private Ownership More Common: Percent of Public Companies Declines Just over half the winners on this year's list are privately held. In fact, there's been a steady decline in public companies over the past few years to 49 percent this year, down from 53 percent last year and 59 percent in 2004. This year, revenues of the privately held companies (51 percent of the list) grew faster on average -- 2,202 percent - than publicly held companies, which had an average growth rate of 2,090 percent.
Billion-Dollar Winners: 12 Billion-Dollar Companies on the Fast 500 This year's Fast 500 has 12 companies that reported more than $1 billion in revenues in 2005, up from 11 companies in 2004. Comcast, a Philadelphia- based media/entertainment company, topped the list, with 2005 revenues of $22.3 billion. This is the first year it has appeared on the Fast 500 listing; it was ranked Number 425.
The Big Return: Six Companies Repeat Seven+ Years The bar is raised each year a company makes the Fast 500, and it's not easy to maintain soaring growth rates, so repeat winners are exceptional. This year, five companies are highlighted as making the Fast 500 list for seven years: Open Solutions Inc., Research in Motion, Celgene Corporation, Cephalon Inc., and Unica Corporation. One company, Gilead Sciences, a biotechnology/pharmaceutical company based in Foster City, Calif., has been on the list for eight years.
Rising Stars -- 25 Fast-Growth Companies Less Than Five Years Old As an accompaniment to the Fast 500, Deloitte also honors 25 "Rising Star" companies. These fast growing young companies are based in North America and have been in business three or four years. They are selected based on percentage revenue growth over three years, from fiscal year 2003 to 2005. Deloitte's Top 3 "Rising Stars" for 2006 are: * Number 1 -- Proofpoint Inc., a privately held software company based in
Cupertino, Calif., with 13,096 percent growth over three years.
* Number 2 -- SiliconSystems Inc., a privately held semiconductor company
based in Aliso Viejo, Calif., with 7,204 percent growth over three
years.
* Number 3 -- Top Ten Reviews, a privately held Internet company based in
Ogden, Utah, with 3,780 percent growth over three years.
Qualifying Criteria
The Fast 500 ranks the fastest growing technology, media, telecommunications and life sciences companies in North America. It is compiled from Deloitte's 16 regional North American Fast 50 programs, nominations submitted directly to the Fast 500, and public company database research.
Winners are selected based on percentage revenue growth from 2001 to 2005. To be considered, Fast 500 and Fast 50 entrants must have met the following criteria: * Must own proprietary intellectual property or proprietary technology
that contributes to a significant portion of the company's operating
revenues, or devote a significant proportion of revenues to research and
development of technology. Using other companies' technology or
intellectual property in a unique way does not qualify.
* Base-year operating revenues must be at least $50,000 USD or $75,000 CD,
and current-year operating revenues must be at least $5 million USD or
CD. Companies are required to submit tax returns or audited financial
statements with their submitted nomination to complete their
eligibility.
* Must be in business a minimum of five years.
* Must be headquartered within North America. Subsidiaries or divisions
are not eligible (unless they have some public ownership and are
separately traded).
Deloitte selects 25 fast growing young companies as "Rising Stars." To qualify as a Rising Star, entrants must have been in business three or four years. Rankings are based on companies' percentage fiscal year revenue growth over three years (2003-2005). Other qualifications are the same.
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Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu. In the United States, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche. USA LLP Note: For a complete list of the Deloitte Technology Fast 500 winners for 2006 (and past years), visit http://www.fast500.com/.
All names are trademarks or registered trademarks of their respective companies and are used for information purposes only.
The Deloitte Technology Fast 500 contains general information only, and Deloitte is not, by means of this program, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. The Technology Fast 500 is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect you or your business. Past performance is not necessarily indicative of future results. In addition, prediction of future events is inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results to vary materially. Before making any decision or taking any action that may affect you or your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person or entity that relies on this program. DATASOURCE: Deloitte CONTACT: Teri Bruno of TBPR, +1-714-536-8407, , or Laura Wilker of Deloitte Services LP, +1-212-492-2871, Web site: http://www.deloitte.com/us http://www.fast500.com/ http://www.newmarkettechnology.com/ http://www.occamnetworks.com/ http://www.westport.com/ http://www.litle.com/ http://www.airborne-e.com/
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