Friday November 12, 3:33 pm Eastern Time
Company Press Release
SOURCE: Inter@ctive Week
Intel Named Number-One on the Internet 500 Introduced by
Inter@ctive Week
First Definitive Ranking of Revenue Generated by E-Commerce Sites
GARDEN CITY, N.Y., Nov. 12 /PRNewswire/ -- Intel Corp. (Nasdaq: INTC - news), with online revenue of $10.5 billion, took the number-one position on
The Internet 500 -- the first-ever ranking of the top businesses by the revenue they generate from their online operations -- introduced by Inter@ctive Week.
In addition to the definitive list, a comprehensive package in the newspaper's special Nov. 15 Comdex/Fall '99 issue features profiles of the top e-commerce
companies and executives, breakdowns by key market segments and in-depth analyses.
``While much is made of e-commerce growth and dot-com initial public offerings, The Internet 500 finds that established companies dominate the upper
e-echelon,' notes Inter@ctive Week Editor John McCormick, who spearheaded the effort. ``Only one of the top 15 companies on the list -- Amazon.com -- is
a pure Internet play.'
The Internet 500 was researched in conjunction with the Center for e-Business at Massachusetts Institute of Technology and Ernst & Young, the public
accounting firm.
``This is the first definitive guide to the scope of the Internet economy,' said Inter@ctive Week Editor-in-Chief Tom Steinert-Threlkeld. ``And while the
Internet 500 shows a vibrant economy, full of innovative ideas and companies, the number of companies still trying to grab a foothold and create sustainable
long-term profitable businesses far outweighs those that are clearly going to be lasting, substantial brands and market leaders. It's still an economy of the future,
not present.'
The top 10 companies on Interactive Week's The Internet 500 are:
Company Online Revenue
Intel Corp. $10.5 billion
Cisco Systems Inc. $9.5 billion
IBM Corp. $8.8 billion
Dell Computer Corp. $6.1 billion
Federal Express Corp. $5.6 billion
United Parcel Service of America $5.4 billion
America Online Inc. $4.4 billion
Ingram Micro Inc. $3.0 billion
Nortel Networks Corp. $2.4 billion
Tech Data Corp. $1.7 billion
Top-ranked Intel generated an estimated $10.5 billion of its $27 billion overall revenue through its online operations, according to the research conducted by
Inter@ctive Week in conjunction with MIT and Ernst & Young. The company waited until it was ready to do e-commerce the way it wanted to, then started
doing it on a massive scale from the word go. Inter@ctive Week reports that the chipmaker generated $1 billion in its first month on line in 1998 and is
currently running about $35 million a day.
For the majority of the companies at the top of the list, traditional measures of success are no longer weighed. A case in point is Amazon.com, the number 13
on The Internet 500. At the end of October 1999, the company reported a quarterly loss, not including one-time charges, of $86 million on revenue of $356
million.
McCormick also noted that the total online revenue generated by the 500 companies for the four quarters ended June 30, 1999, was $74 billion. As a group, he
said, they lost $331 million.
MIT Professor Erik Brynjolfsson, who analyzed The Internet 500 research findings for the Nov. 15 issue, said: ``Whatever profit you could generate in 1998 or
1999 is just a small fraction of the revenue you'll be able to generate in three years because the Internet is growing.' He feels that the smart play is to establish
brand and market share now and wait a couple of years for a return on that investment. ``The big dot coms choose not to make a profit,' Brynjolfsson adds.
Brynjolfsson broke down The Internet 500 data by industry sectors and, across them all, the top benefit from e-commerce was reaching new customers and
markets. Traditional numbers -- return-on-investment -- are likely to fall short, Brynjolfsson notes, to the extent that they don't take into account the lifetime
value of a new customer, of increasing the loyalty of existing customers or of increasing the revenue per customer.
Inter@ctive Week worked with a number of leading Internet measurement firms, including MediaMetrix, Nielsen/NetRatings and Web21, to gather data to
create a universe of more than 1,000 e-commerce companies. Concurrently, Advantage Business Research, a leading e-commerce and information-technology
research organization commissioned by Inter@ctiveWeek, polled hundreds of public and privately held firms to compile current online revenue figures.
In addition to being published in the Nov. 15 issue of Inter@ctive Week, The Internet 500 package will be posted to the newspaper's Web site,
interactive-week.com.
About Inter@ctive Week
Inter@ctive Week, a Ziff-Davis publication, is the Internet's newspaper with a controlled circulation of 200,000 Internet business and technology professionals.
It launched in 1994 as the first business-to-business paper for today's Internet economy.
About Ziff-Davis
Ziff-Davis Inc (NYSE: ZD - news) is a leading media and marketing company focused on computing and Internet-related technologies, with principal platforms
in print publishing, trade shows and conferences, online content and services, television and education. Ziff-Davis provides global technology companies with
marketing strategies for reaching key decision-makers. Ziff-Davis has two series of common stock, one which is intended to track the performance of its
Internet business ZDNet (NYSE: ZDZ - news), and one which is intended to track the performance of the ZD Group (NYSE: ZD - news), which includes
print publishing, trade shows and conferences, education, product testing, online learning and television businesses, and an 83 percent retained interest in
ZDNet.
SOURCE: Inter@ctive Week
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