Methodology

Baseline's ranking of the fastest-growing small software companies.

To identify 10 of the fastest-growing small software companies, Baseline started with a list of companies that produce pre-packaged software and had less than $150 million in sales in their penultimate fiscal years.

Our calculations of percentage revenue growth in the slide show are based on a comparison of each company's revenue in its most recently reported full fiscal year, versus the previous year. Several of these companies are on June fiscal years and will report numbers for their 2007 fiscal year in a matter of days.

Baseline made some editorial judgment calls, including eliminating companies whose financial results were in doubt because of possible restatements. Our list of fast-growing small companies is intended to be representative, not definitive.