CUBE is in the "Gold Circle" of the 50 fastest growing Silicon Valley tech companies, meaning it has been on the list for each of the past four years. Only six companies are in the Gold Circle.
OmniCell Technologies Tops List of Silicon Valley Technology Fast 50
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 2, 1998--Silicon Valley technology companies are redefining the standard for rapid financial growth.
How fast is fast in Silicon Valley? How about a 32,492 percent increase -- in five years?
That was the explosive revenue surge for OmniCell Technologies, Inc., a Palo Alto-based life sciences company that tops the Silicon Valley Technology Fast 50, the annual listing of the 50 fastest-growing technology companies in Silicon Valley, sponsored by Deloitte & Touche LLP and Joint Venture: Silicon Valley Network.
Now in its fourth year, the Technology Fast 50 recognizes the tremendous revenue growth and achievement of those companies that lead the booming technology market and the region's economy. The list is based on the companies' percentage growth in revenues from 1993-97.
Despite Asian and other world market crises, all of this year's Fast 50 companies grew by 650 percent or more. And collectively, the Fast 50 had a phenomenal average five-year revenue growth of 3,319 percent. Thirty-nine of the 50 are public companies.
"In Silicon Valley, the Fast 50 have proven that they can compete successfully by consistently delivering technological wonders," said Mark Evans, managing director of the High Technology Group of Deloitte
& Touche. "We commend this year's winners for having the vision and determination to become one of the 50 fastest-growing technology companies in Silicon Valley."
Adds Becky Morgan, president and CEO of Joint Venture: Silicon Valley Network: "It is important for us to take the time to celebrate the success of our Silicon Valley Technology Fast 50. Nowhere else in the world does this type of dynamic and entrepreneurial brain trust exist."
The top five of the Fast 50 are (in order): OmniCell Technologies, Inc., of Palo Alto; Incyte Pharmaceuticals, Inc., of Palo Alto; PointCast Incorporated, of Sunnyvale; SPYRUS, of San Jose; and International Network Services, of Sunnyvale.
This year's Fast 50 includes six Gold Circle honorees, a select group of companies that have made the Fast 50 all four years. In fact, they increased their collective revenues by 892 percent over the last five years.
The Gold Circle includes: C-Cube Microsystems Inc., of Milpitas at No. 27; VERITAS Software Corporation, of Mountain View at No. 37; Insync Systems, Inc., of Milpitas at No. 39; Cisco Systems Inc., of San Jose at No. 40; SMART Modular Technologies, Inc., of Fremont at No. 44; and Chip Express Corporation of Santa Clara at No. 47. Their average revenue growth over this period was an astonishing 926 percent.
The software sector had the highest representation on the Fast 50, totaling 34 percent of the winners. The semiconductor sector was second at 26 percent, followed by life sciences at 14 percent.
The Fast 50 CEOs and their companies were formally recognized at a black-tie optional awards ceremony Oct. 1 at the San Jose Fairmont Hotel.
How does a company manage to sustain record revenue levels over and over again, especially in the fiercely competitive technology industry?
"Most market dynamics are changing at such a rapid pace that it is hard to steer a company to success because the window of opportunity in new markets is much narrower," said Randall Lipps, chairman of OmniCell Technologies, Inc., No. 1 with 1997 revenues of $47.9 million and a revenue growth rate of 32,492 percent.
OmniCell's integrated hardware and software devices help manage both the inventory, and cost of supplies and medications at nursing locations, operating rooms and emergency rooms throughout the United States and Canada.
"Product releases have to be on time and successful, and there is less room for error," Lipps said.
According to Roy Whitfield, CEO of Incyte Pharmaceuticals Inc., a biotech database firm, "Silicon Valley provides Incyte with a vast talent pool and entrepreneurial spirit. Incyte would not relocate its headquarters anywhere else."
At $88.3 million in 1997 revenues and a 31,567 percent growth rate since 1993, Incyte is second on the Fast 50. Researchers at the forefront of decoding the human genetic map rely on Incyte to deliver database products that help them process their data, and its databases contain information on human genes.
PointCast Incorporated, the first free news network to broadcast up-to-the-minute news and information via the Internet direct to the user's screen, posted 1997 revenues of $17.9 million and a 12,224 percent growth rate to place third on the list. What motivates PointCast President and CEO Dave Dorman?
"The huge potential of the Internet -- and the risks" and "just the raw challenge to create something that is useful and contributes to life in a meaningful way," he said.
SPYRUS, which provides hardware and software Internet encryption technologies, is fourth on the Fast 50 list with 1997 revenues of $19.8 million and a 6,684 percent growth rate. SPYRUS CEO Sue Pontius said her company's greatest source of strength is its employees.
"And even though each individual we add to the team builds our momentum, we still prefer a healthy dose of self-doubt over blind faith," she said.
International Network Services (INS), the Sunnyvale-based information technology services firm that was first on last year's list, is back again -- this year at number five.
With $99.2 million in 1997 revenues and a 6,612 percent growth rate, INS is the only company in the history of the Fast 50 to place in the top five in multiple years.
INS designs networks, specifies equipment, installs the system and monitors its performance, and advises clients on how to make the most of their computer networking systems. "Our goal," said President and CEO John Drew, "is to create the best place in the network industry for employees to work."
Adds Roy Avondet, who leads Deloitte & Touche's Northern California High Technology Group, "As the competition for workers possessing technical know-how grows more active worldwide, we can no longer count on Silicon Valley's reputation alone to draw the talent we need. To sustain growth, companies must become creative in their strategies to attract and retain good employees."
"Our congratulations go to all these companies and their employees," Joint Venture's Morgan said. "They have proven that even in Silicon Valley, sustained growth is achievable and the rewards are plentiful."
Fast 50 sponsor Deloitte & Touche LLP is one of the nation's leading professional service firms, providing accounting and audit, tax and management consulting services through 72,500 people in more than 129 countries. Deloitte & Touche LLP is part of Deloitte & Touche Tohmatsu, a global leader in professional services.
Joint Venture: Silicon Valley Network is a non-profit regional collaborative established to enhance the economic vitality and quality of life in Silicon Valley. Joint Venture brings people together from business, government, education, and the community to identify and to act on regional issues affecting the Valley.
For the complete list of the Silicon Valley Technology Fast 50, or for more information, contact Deloitte & Touche LLP at 408/993-4346 or visit hightech@dttus.com on the Internet.
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CONTACT:
Joint Venture: Silicon Valley Network
Kathy Maag, 408/938-1521
K_Maag@jointventure.org
or
Deloitte & Touche
Sandra Gomez, 408/993-4346
sgomez@dttus.com
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