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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