SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

About the 2003 Deloitte Technology Fast 500

[October 13, 2003]

About the 2003 Deloitte Technology Fast 500

What is the Technology Fast 500 Program? The Deloitte Technology Fast 500 program is a ranking of the 500 fastest growing technology companies in North America. It includes all areas of technology, from Internet to life sciences, from computers to semiconductors. It includes both public and private companies.

What is the Fast 500 ranking based on? The Fast 500 ranks companies based on percent growth in fiscal year revenue over five years. Because the 2003 Fast 500 ranks companies based on fiscal year revenues (1998–2002), it is an indication of past growth. It does not take into account current performance or profitability.

How long has the Fast 500 been in existence? The Fast 500 was founded in 1995 and celebrates its ninth year in 2003.

Where do entries for the program come from? The Fast 500 list is compiled from three sources: Deloitte’s 20 regional North American Fast 50 programs, nominations submitted directly to the Fast 500, and public company database research.

How do companies qualify? To qualify for the Fast 500, entrants must have had 1998 operating revenues of at least $50,000 USD and $75,000 CD for the United States and Canada, respectively; and 2002 operating revenues must be at least $1 million USD or CD. Entrants are public or private companies headquartered in North America. Each entrant must be a “technology company,” defined as a company that owns proprietary technology that contributes to a significant portion of the company's operating revenues; or devotes a significant proportion of revenues to the research and development of technology. Using other companies' technology in a unique way does not qualify.

Does a company have to be publicly held to qualify for the Fast 500? No, but private companies must provide a nomination form that contains financial information as well as supporting documentation, such as audited financial statements.

How does the program determine the winners? The Fast 500 is based on percent of fiscal year revenue growth over five years for each technology company. For the 2003 Fast 500, companies were ranked based on percentage growth for each company’s fiscal year revenues over five years (1998 and 2002). The minimum revenue growth necessary to be included on this year’s list was 469 percent.

Who is the 2003 Fast 500 Number 1 winner? TheraSense Inc. topped the 2003 Deloitte Technology Fast 500, a ranking of the fastest growing technology companies in North America based on average percentage revenue growth over five years. A life sciences company based in Alameda, Calif., TheraSense’s (NASDAQ: THER) revenues grew 296,080 percent from $60,000 in 1998 to $177,708,000 in 2002.

How does the 2003 Fast 500 winner compare to the 2002 winner? TheraSense’s 296,080 percent growth is higher than that of the 2002 winner, ITXC. In fact, TheraSense’s percentage growth is higher than the top winners for the past three years’ Fast 500 programs. ITXC was ranked Number 1 in 2002 with 293,493 percent growth. ITXC is ranked Number 32 this year.

What has been the greatest revenue percentage growth for all eight years the program has been in existence? Siebel Systems Inc. (the 1999 Fast 500 Number 1 company) had the greatest percentage revenue growth of any Fast 500 company since the program’s inception. Its revenues grew 782,978 percent, from $50,000 in 1994 to $391,539,000 in 1998.

How many 2003 Top 10 Fast 500 companies have previously appeared on the Fast 500?
The only 2003 Top 10 winner to rank on the Fast 500 in previous years is Number 10 United Therapeutics Corporation. It ranked Number 96 in 2002 and Number 389 in 2001.

How many companies have appeared on the Fast 500 more than once? Fifty percent of the winners (248 companies) have appeared on the Fast 500 at least one other time. Of those, 129 companies have made the ranking two times, 78 have made the ranking three times, 26 have made the ranking four times, and 8 have made the ranking five times. Only one company has made the ranking for six years, and five companies have appeared for seven years; all six of those five- and six-year repeat winners have consecutive wins.

Have any companies won all nine years since the inception of the Fast 500 program? Only one company has ranked on the Fast 500 for the nine years since the program’s inception in 1995: Number 404-ranked VERITAS Software Corporation (NASDAQ: VRTS), a software company based in Mountain View, Calif. Its revenues increased 614 percent from $210,865,000 in 1998 to $1,506,555,000 in 2002.

Why are there not more repeat winners? Because the Fast 500 is based on fiscal year revenue growth over five years (this year, it is based on revenues for fiscal years 1998 to 2002), each company’s baseline revenue year can increase dramatically each year. A company can be very successful but not rank on the Fast 500. The Fast 500 ranks companies that have experienced exceptionally fast growth. It is not a measurement of current revenue, stock performance, profitability, or anticipated future success.

What is the average percent growth for the entire Fast 500? Overall average fiscal year growth over five years for all 500 winners was 5,493 (the third-highest average percentage since the program’s inception in 1995). Last year’s average percent for all winners was 6,772 percent while the average percentage in 2001 was 6,184 percent, a significant increase over the 2000 average growth rate of 3,956 percent. Combined, the 2003 top five winners growth rate averaged 177,851 percent, down from the 2002 top five winners’ average growth rate of 196,762 percent, but still nearly double that of the 2001 average of 93,496 percent.
Which industry segment has the greatest number of companies? Thirty-nine percent (196 companies) of the 2003 Fast 500 winners are in the software industry, down slightly from 48 percent in 2002 and 57 percent in 2001. Companies in the life sciences industry represented 19 percent (94 companies) of the winners, up from 16 percent in 2002 and 15 percent in 2001. Internet companies represented 18 percent (89 companies), up significantly from 10 percent in 2002 and 15 percent in 2001. Communications and networking companies accounted for 16 percent (78 companies), up slightly from 15 percent in 2002 and 13 percent in 2001. Semiconductor and equipment companies represented 4 percent (22 companies), down from 7 percent in 2002 and 6 percent in 2001. Computer and peripheral companies represented 4 percent (21 companies), consistent with 4 percent in 2002 and down slightly from 6 percent in 2001.

Where are the majority of the Fast 500 companies located? The Western United States is home to 32 percent (162 companies) of the Fast 500 winners, down from 36 percent (180 companies) in 2002. This percentage has been fairly consistent for the past four years, with 32 percent in 2001 and 27 percent in 2000. This year, three of the top 10 winners are based in the West, two in Northern California and one in Southern California. The Northeastern United States is home to 23 percent (113 companies) of the winners, holding steady from 23 percent in both 2002 and 2001 and 25 percent in 2000. The Southeastern United States is home to 16 percent (82 companies) of the winners, the same as in 2002. For the first time since the program’s inception in 1995, five of the top 10 Fast 500 winners are based in the Southeast.

Which state has the most Fast 500 winners? California retains its title as home to more Fast 500 companies than any other state with 25 percent (126 companies), down from 30 percent (149 companies) in 2002 but consistent with 26 percent (132 companies) of the 2001 Fast 500 winners. Northern California is home to 81 companies, while Southern California has 45 companies.

Which region has the highest ranked Fast 500 winners? Three of the top 10 winners are based in California, two in Silicon Valley and one in Southern California. Two of the top 10 winners are based in Florida, and two are based in Maryland. New York, Virginia, and Texas each have one top 10 winner. (See www.fast500.com for complete winner listing.)

How do other major high tech centers compare to Northern California? Northern California is home to 81 winners, down from 108 winners in 2002. But other high tech centers also have large numbers of winners, including Southern California with 45 winners; Massachusetts with 36 winners; Texas with 28 winners; Virginia with 27 winners; New Jersey with 23 winners; and New York with 22 winners. Canada is emerging as a high-tech center with 68 winners based there.

Which region has the fastest growth rates overall? Southeastern Fast 500 winners had the highest average percentage growth of all the U.S. regions with 9,209 percent, which is up substantially from 2,325 percent in 2002 and 5,094 percent in 2001.

What other regions had growth percentage increases? Southwestern Fast 500 winners had an average percent growth of 4,195 percent, up from 3,988 percent in 2002. This was down from 5,770 percent in 2001.

What regions had a decline in growth percentages? Fast 500 winners in the Western United States had an average growth percentage of 7,427 percent, down from 9,730 percent in 2002 and 8,777 percent in 2001. Northeastern United States Fast 500 winners had an average growth percentage of 3,862 percent, down significantly from 8,574 percent in 2002, which was more than double its 4,244 percent in 2001. Midwestern Fast 500 winners had an average percent growth of 2,241 percent, down from 5,629 percent in 2002 and 4,702 percent in 2001.

How did the Canadian companies rank? Canada is emerging as a new technology center with 14 percent (68 companies) of this year’s winners, up from 10 percent in 2002 and 9 percent in 2001. The highest ranked Canadian Fast 500 winner for 2003 is Number 35-ranked Extreme CCTV Inc. (www.extremecctv.com), a semiconductor/equipment company based in British Columbia, Canada. Its revenues increased 12,689 percent from $138,000 CD in 1998 to $17,649,000 CD in 2002.

What is the average growth percentage for Canadian companies? Canadian Fast 500 winners had an average percent growth of 1,809 percent, down from 2,019 percent in 2002, 6,426 percent in 2001 and 3,372 percent in 2000, the first year Canadian companies were eligible for the Fast 500. This is the fourth year Canadian companies were eligible for the Fast 500. Their revenues were calculated in Canadian dollars.

Who are the biggest companies on the Fast 500? Being multi-billion dollar companies in North America hasn’t stopped the following companies from experiencing stellar growth. There are 12 companies whose 2002 revenues exceed $1 billion. The three largest companies, in order of revenue, are:

· Number 344 Sanmina-SCI Corporation (NASDAQ: SANM), a semiconductor/equipment company based in San Jose, Calif., with 2002 revenues of $8.8 billion and an average percentage growth rate of 783 percent.

· Number 371 Level 3 Communications (NASDAQ: LVLT), a communications/networking company based in Broomfield, Colo., with 2002 revenues of $3.1 billion and an average percentage growth rate of 703 percent.

· Number 482 UnitedGlobalCom Inc. (NASDAQ: UCOMA), a communications/networking company based in Denver, Colo., with 2002 revenues of $1.5 billion and an average percentage growth rate of 495 percent.

What percentage of the Fast 500 companies is publicly traded? Sixty-two percent of the companies on the 2003 Fast 500 are publicly traded, down slightly from 65 percent in 2002 and consistent with 62 percent in 2001. Thirty-eight percent of the winners are privately held. Fifteen of the top 20 companies are publicly held.

What is the Fast 500 Rising Star category? Deloitte selected 25 fast-growth companies as “Rising Stars.” Instead of having to be in business five years like Fast 500 winners, to qualify as a Rising Star, entrants must have been in business less than five years but at least three years. Entrants must have had 2000 revenues of at least $50,000 USD and $75,000 CD for the United States and Canada, respectively. Other qualifications are the same. Rankings are based on their average percentage growth in revenues from 2000 to 2002. Topping Deloitte’s “Rising Stars” list are:

1. SMaL Camera Technologies, a privately held semiconductor/equipment company based in Cambridge, Mass., with 12,924 percent growth over three years

2. marketRx, Inc., a privately held software company based in Bridgewater, N.J., with 11,725 percent growth over three years

3. CharterAuction.com, a privately held Internet company based in Quincy, Mass., with 8,717 percent growth over three years

Is the Fast 500 information available online? Yes, at www.fast500.com and www.forbes.com.

Who is Deloitte? Deloitte, one of the nation’s leading professional services firms, provides audit, tax, financial advisory services and consulting through nearly 30,000 people in more than 80 U.S. cities. The firm is dedicated to helping its clients and its people excel. Known as an employer of choice for innovative human resources programs, Deloitte has been recognized as one of the “100 Best Companies to Work For in America” by Fortune magazine for six consecutive years. “Deloitte” refers to Deloitte & Touche LLP and affiliated entities. Deloitte is the U.S. member firm of Deloitte Touche Tohmatsu. Deloitte Touche Tohmatsu is a Swiss Verein (association), and, as such, neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the name “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu” or other related names. The services described herein are provided by the U.S. member firm and not by the Deloitte Touche Tohmatsu Verein. For more information, please visit Deloitte’s web site at www.deloitte.com/us.

[ Back To TMCnet.com's Homepage ]






Technology Marketing Corporation

35 Nutmeg Drive Suite 340, Trumbull, Connecticut 06611 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2017 Technology Marketing Corporation. All rights reserved | Privacy Policy