Tech Represents 20% of Fastest Growers, Magazine SaysBy John McCormick | Posted 2007-10-22 Email Print
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An expanded ranking of private companies from Inc. reveals scores of hardware, software, telecommunications and I.T. service firms.
High-tech companies make up more than 20% of the 5,000 fastest-growing privately held American companies on a recently released ranking from Inc. magazine.
The Inc. 5000 is based on revenue gains made by companies between 2003 and 2006. This is the first year Inc., which for years has published a ranking of the 500 fastest growing companies, extended its list.
In addition to a top-down order, the list is divided into 27 categories, four of which are computer- and communications-related.
A look into those four business segments finds 465 information technology services firms, 276 software developers, 139 telecommunications companies, and123 computer and electronic manufacturers.
In addition, a number of companies in other categories offer information technology products and services. For instance, 67 firms listed under consulting, 27 firms under security, and 24 under government services offer software or I.T. services.
Given American business' emphasis on information technology and innovation, the fact that tech-related companies make up 20% of the Inc. 5000 came as no surprise to Gartner vice president Martin Reynolds. However, in the coming years, he said, "I wouldn't expect it to go higher." Reynolds notes that information technology development and service jobs are going oversees and that the hot growth in the coming years will come from healthcare and biotech.
The highest ranked technology company on Inc.'s list is Cedar Point Communications, which increased its revenue from $455,204 in 2003 to $68.1 million 2006, a whopping 14,853%. The telecommunications company was second on the overall list behind MemberHealth, a manager of Medicare Part D drug coverage, which reported 20,129% revenue growth between 2003 and 2006.
Cedar Point, which is based in Derry, N.H., makes switches for voice over Internet Protocol networks. Its customers include Charter Communications and Comcast.
Groupware Technology is No. 7 on the overall list and the No. 1 I.T. services company. The consultancy, which specializes in server, storage and networking, grew 7,579%, from $767,426 in 2003 to $58.9 million in 2006.
Turning Technologies is No. 18 on the list and the No. 1 software company. The company, which developed an add-on software package that makes Microsoft PowerPoint slides interactive, increased its revenue between 2003 and 2006 by 3,908%, from $513,137 to $20.6 million.
Vizio follows Turning Technologies on the list at No. 19. The flat-screen manufacturer is the No. 1 computer and electronics company in the ranking. It raised it revenue from $17.3 million in 2003 to $676.6 million in 2006, a 3,807% jump.