Business 2.0’s 100 Fastest-Growing Tech Companies: Apple Computer #3

To find the 100 Fastest-Growing Tech Companies, Business 2.0 screened more than 2,000 tech companies that have been publicly traded on a U.S. stock exchange for at least three years, have a market capitalization of at least $50 million, and have had positive operating cash flow over the past 12 months. Zacks Investment Research of Chicago ranked the resulting list using four financial criteria: growth in revenue, profit, and operating cash flow during the past three years, and the 12-month stock return as of Dec. 31, 2005. Cash flow growth counts for 40 percent of a company’s ranking. Each of the other criteria counts for 20 percent.

Apple Computer surged from 16th place on the 2005 list to #3 this year with revenue growth of 35.4% (3-year annualized) and a 2005 stock return of 123%. Apple is just behind Red Hat (52.8%, 144%) and #1 Celgene (52.8% and 144%%) and just ahead of #4 SanDisk (69.1% and 152%). Of Red Hat, Business 2.0 writes, “Linux may be free, but Red Hat is making a killing from it. Last year the company added 51,000 customers seeking support for the open-source OS, and 99 of its 100 largest clients renewed.” Of SanDisk, Business 2.0 writes, “When the iPod’s success cut into its sales of memory chips to makers of MP3 players, SanDisk started making its own. It’s now the No. 2 U.S. player. More than 150,000 retailers sell its memory cards for digital cameras.”

As for Apple, Business 2.0 writes, “2005 was another banner year for Steve Jobs & Co., as Apple introduced the $199 iPod Nano and the $499 Mac Mini computer. The debuts helped add $6.4 billion to sales without putting a dent in profit margins.”

Full list here.

[Thanks to MacDailyNews Reader “Day Tripper” for the heads up.]

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10 Comments

  1. Ok listen up all you wallies worried about the share price from day to day, this is what it is all about.

    Not how much it cost yesterday to today but what can it earn me over a number of years!

    Go Apple

  2. “As for Apple, Business 2.0 writes, “2005 was another banner year for Steve Jobs & Co., as Apple introduced the $199 iPod Nano and the $499 Mac Mini computer.”

    Well, introduced the $499 Mac Mini, then robbed it from us, but let’s not be too bitter ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  3. This is actually more significant than it seems on the surface. Apple may well be the largest company in the top ten. Why? Bigger companies tend to grow, or shrink, more slowly than their smaller counterparts. A company with the minimum market cap ($50M) three years ago could double its revenue, profit and cash flow every year and end up a $400M company while Apple could gain $400M each of those years and see hardly any progress at all.

    On a completely different subject … why is there an ad on my screen for software that will add a <i>FREE local weather indicator to your System Tray<i> – my Windows System Tray? Now … I know the site needs revenue from ads so we can all enjoy the site – get much of our news in one place and then get to act like rowdy schoolboys about it – but isn’t this a bit of a stretch? Or are we invited to comment derisively about the ads, too?

  4. DLMeyer,

    Many of the ads you see on websites are automated and/or run based on keywords. It’s not an exact science. Sometimes you will see an ad for a Windows-only thing – this is triggered because this is a tech site and they use the words “Windows,” “PC,” “Microsoft,” etc. in certain articles. Many of us realize that MDN did not specifically choose that ad to run on the site.

  5. Actually, any poor Windows schmuck who downloads the “free” weather app, and gets blasted with umpteen different kinds of spyware, will soon find himself longing for a Mac. So you can think of those ads as indirect advertising for the Macintosh.

  6. Yep. I am convinced Apple is doing great things and everything looks up log term. Steve Jobs seems healthy to me, at least in his interviews around the NY store opening. So, all should be good for a long-term, one year plus hold on Apple stock. I am reluctant to buy any more right now as the tech. sector seems to be headed down and Apple seems to be being slowly dragged down with it.

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