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To: Johnny Canuck who wrote (39598)	5/29/2003 3:05:57 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69913

Growth Companies, Market Stars Lisa DiCarlo, 04.11.03, 8:30 AM ET Every company on our list of fastest-growing technology companies has a five-year annualized sales growth rate of at least 33%, and all these companies were profitable last year. But the real crème de la crème is the eight companies that grew by a third measure: share price appreciation. While the Nasdaq index fell 26% over the last 52 weeks, these eight stocks have an average gain of 69%. · The 25 Fastest-Growing Technology Companies · Can WebEx Meet Growth Expectations? · What Keeps Cephalon Awake At Night? · Lexar Media Holds The Right Cards Click here to download the list of Fastest Growing Techs for your PDA One winner is Biolase Technology (nasdaq: BLTI - news - people ), whose shares show a 52-week gain of 47%. The San Clemente, Calif.-based company makes laser-based dental instruments that are used for procedures like root canals, fillings and even some surgeries. The company claims that its laser equipment provides pain-free dentistry. Over the past five years, Biolase has sold 1,500 of its Waterlase systems in the U.S., yet there are 140,000 dentists in the country. Revenue at Biolase has increased 86% (annualized) over the past five years, but with only $29 million in sales for its latest fiscal year, this firm has room to grow. The $50,000 price tag for the new drill is something of a barrier, but demand from patients for treatment with this new technology could help drive sales. Two survivors of the dot-com era are also on our list: j2 Global Communications (nasdaq: JCOM - news - people ) and eBay (nasdaq: EBAY - news - people ). J2, whose shares have appreciated 245% over year-ago levels, sells subscription services that convert faxes and voice mails into e-mails. J2 has a 40% share of the fax-to-e-mail market and also offers unified messaging, conference calling and voice-mail services to businesses. Some analysts expect a bright future for third-party companies, such as j2, that manage corporate communications. The 2003 consensus estimate for j2 calls for earnings per share of $1.85; shares of j2 sell for 12 times this forecast. Defense contractor Engineered Support Systems (nasdaq: EASI - news - people ) was prospering even before the U.S. went to war against Iraq. Engineered Support provides military gear, such as generator sets, chemical and biological protection systems and electronics and surveillance equipment. The company has a five-year revenue growth rate of 42% (annualized) and a 52-week price gain of 33%. With the war in Iraq and America's military buildup, St. Louis, Mo.-based Engineered Support Systems has seen a marked increase in business. During its first-quarter conference call, Chairman Michael Shanahan raised 2003 revenue guidance to between $475 million and $485 million, up from $460 million. Shanahan also said the company had a total contract backlog worth more than $1 billion. Analysts are now looking for Engineered Support to post 18% in earnings and revenue growth this year, helped along by the firm's pending $67 million acquisition of Technical and Management Services. Company Industry Price 52-Week Change 2003 Estimated P/E Five-Year Sales Growth* Biolase Technology (nasdaq: BLTI - news - people ) laser-based medical systems $8.26 47% 27 86% Cognizant Technology Solutions (nasdaq: CTSH - news - people ) outsourcing IT solutions 22.31** 63 31 53 eBay (nasdaq: EBAY - news - people ) online marketplace 89.55 57 67 99 Engineered Support Systems (nasdaq: EASI - news - people ) military support equipment and electronics 39.57 33 19 42 Forest Laboratories (nyse: FRX - news - people ) branded and generic drugs 55.03 36 24 39 j2 Global Communications (nasdaq: JCOM - news - people ) fax, conference call equipment 30.00 245 12 126 Lexar Media (nasdaq: LEXR - news - people ) digital photo media cards 3.60 31 10 125 Packeteer (nasdaq: PKTR - news - people ) application traffic management systems 9.99 40 29 103 More Stock Focus Columns forbes.com