2007 Deloitte Technology Fast 500 Research and Eligibility The Deloitte Technology Fast 500 is a ranking of the fastest growing technology, media, telecommunications and life sciences companies in North America based on percentage fiscal year revenue growth over five years (2002–2006). Sources for public and private companies that make the list include public company databases, Deloitte’s 16 regional Technology Fast 50 programs in North America and direct nominations. To be eligible for the Technology Fast 500, a company must meet the following criteria: 1. Owns proprietary technology or proprietary intellectual property that contributes to a significant portion of the company’s operating revenues or devotes a significant proportion of operating revenues to research and development of technology. Using other companies’ technology or intellectual property in a unique way does not qualify. 2. Meet minimum operating revenue requirements: • 2002 operating revenues must be at least $50,000 USD or $75,000 CD. • 2006 operating revenues must be at least $5 million USD or CD. 3. Be in business a minimum of five years. 4. Be headquartered within North America.
Market Maturity Propelling Tech Sector Growth There was a time not so long ago when tech companies were almost all high-concept, and not at all revenue-driven. That dot.com boom, of course, didn’t last. Successful companies today understand the value of meshing innovation with the realities of the bottom line. We see that this year in our 13th annual Deloitte Technology Fast 500 list. Their success is characteristic of the variety of successful technology companies that have found the right mix of business savvy and creativity. Today’s more mature tech companies are run with precision. They’re capital efficient and have a global outlook. It’s that business sophistication that gets you on the Fast 500. Our Top Five companies experienced an average revenue growth rate of 41,093 percent over five years, up from 38,107 percent in 2006. Revenue growth for the 2007 Fast 500 companies ranged from 253 percent to 79,060 percent, with an overall average growth of 1,823 percent. The Deloitte Technology Fast 500 recognizes North America’s fastgrowing technology companies in terms of percentage of revenue growth over five years. The Top Five SIRIUS Satellite Radio Inc. (NASDAQ: SIRI) was named the fastest growing company in North America. SIRIUS had a revenue growth rate over five years of 79,060 percent, moving from revenues of $805,000 in 2002 to $637,235,000 in 2006. Based in New York City, SIRIUS is a publicly held provider of satellite radio services. This is its first appearance on the Fast 500 ranking. SkyBitz Inc., a Sterling, Va.-based privately held communications/ networking company, came in second on the 2007 Fast 500 listing. SkyBitz provides wireless tracking sensors for the transportation industry and reported revenues of $26,673,000 in 2006, a leap of 40,314 percent from 2002 revenues of $66,000. This is its first appearance on the Fast 500 ranking.
Fast 500 Companies Average Percentage Growth Rate
Fast 500 Companies by Industry Segment Scientific/Technical Instrumentation 6%
1,823%
Semiconductor 5%
98
99
00
01
02
03
04
05
06
Media/Entertainment 2%
Medical Equipment 6% Computers/ Peripherals 4%
Software 37%
07
Internet 12%
Communications/ Networking 16%
As used in the document, the term “Deloitte” includes Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP and Deloitte Tax LLP.
Biotechnology/ Pharmaceutical 12%
www.fast500.com
1