Squeak! - The fastest growing profitable
STORAGE companies in
the US - 2001
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| history:- |
the Fastest Growing STORAGE
companies:- 2001,
2002,
2003,
2004 |
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In the
current recessionary conditions prevailing in the US computer industry, it
would be understandable if many of you thought that the companies listed in this
article were just lucky when they got their results in. You might also doubt if
they could could do it again. But when you've spent most of the last decade
analysing this segment of the computer industry as I have, and when you're old
enough to have worked through a couple of serious recessions, it's hard to avoid
coming to the following conclusions.
- this recession, which was triggered by the capital wipe-out of the wasteful
and irresponsible dot-com bubble, is not going to suddenly go away.
- recessions do not impact all companies equally. Whereas most companies, and
people do suffer, they provide a growth opportunity for products and services
which can increase the efficiency of business operation. The take up of some new
technologies is slower in good times, because there is less need for business to
be efficient.
- you can segment the US computer market into two economies.
The
first - associated with the desktop market and PC's is going to have a really
miserable year in 2001. (FYI - This was published a week before IBM's Louis V.
Gerstner, Jr., IBM chairman and chief executive officer, said "The desktop
segment is hurting -- and it is not just a cyclical issue. This is a mature
business, and it no longer drives the economics of the IT industry.")
The
second - associated with enterprise storage and multiprocessor rackmount
servers is growing at phenomenal rates and may actually speed up as a
result of the recession. In February
Dell Computer reported
that sales of its high-density rack-mounted servers had more than tripled, and
accounted for more than 40 percent of Dell's server revenue. In March,
GNP Computers, a
manufacturer of SPARC compatible platforms for the convergent teledatacom
industry announced that the company's gross revenues in 2000 increased over 230
percent from the prior year.
That's because these technologies can
automate and replace many non computing functions in traditional businesses,
displacing sales, marketing and other white collar knowledge workers and
replacing inefficient hangovers from the pre-electronic economy which companies
have found hard to let go. The negative consequences of the dot-bombs
are hurting people everywhere. If you've just lost your job, or had 60% of your
life savings disappear, or are facing a 10% reduction in your company revenue
you may find it difficult to swallow that the dot-com bubble may have some
good long term effects.
That may sound like a giant meteor has just
landed on your house, and some mad optimist says cheerfully:- that with a bit of
redevelopment, the site could be converted to a wildlife reserve or a lake.
Nevertheless, there will be some positive outcomes in the long term...
Most dot-com companies were at the extreme end of a technology
utilization curve, but many of the lessons they provide will endure.
- you can replace many business functions with computer technology. But the
customer getting a benefit is not sufficient. The enterprise using the
technology must ensure that the entire business process is profitable.
- if what you're doing is inefficient, or wasteful, then scaling the process
up makes your business sink faster. Many newly enriched dot-coms handed over
large parts of their investors' capital to the TV advertising industry, without
bothering to test whether that was a sustainable method of acquiring customers.
- the dot-com bubble speeded up the penetration of internet access
everywhere. This will enable the next generation of business-savvy companies and
educational institutions to benefit from the low cost information exchange,
content delivery, and micro transaction costs which are the real strengths of
this technology.
It looks like it will take more than a hit from a
giant meteorite, or a worldwide recession to slow down the growth of most of the
companies listed below. | |
 |
For an
experienced player like
Megabyte picking winners was
just a question
of pulling the right handles. | |
|
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In compiling this list I looked at US
companies which had annual revenue of at least $50 million, for which their
primary business was storage.
The company had to be
profitable in the reported period, and could be private or publicly
listed. I also contacted some of the world's largest computer companies to see
if they would disclose data for their storage business units.
Should
your company be on this list?
We announced this article for 3
months before running it, and then ran it on this site for 3 weeks during which
we accepted last minute updates and corrections. Any company which does not
appear in this list and thinks they should be, should ask themselves what they
pay their marketing department for, and will have to wait till next year.
STORAGEsearch is
not a financial investment publication. It's a buyer's guide. Some
companies use different reporting periods, and I've taken the view that if the
storage market situation has greatly improved during the last 6 months or so,
perhaps due to new product introductions, that's more important than something
which happened maybe as long as a year ago. I've included data from more than
one quarter as a sanity check if there have been very large changes or
uncertainty in the data I've quoted.
All the data comes from press
releases on the original company's web site, or from press releases which we
have run on this site. I've included the minimum amount of data required to show
that each company deserves a mention in this article.
Thanks to the
readers who have contributed to this article.
If you don't see
your fast growing company in the top 10 list below...
Remember what
I said about the "profitable" qualification above.
For
example:-
Emulex (Nasdaq:EMLX)
reported April 19, 2001 results for its third fiscal quarter ended April 1,
2001. Revenues expanded to $60.4 million, up 65% from the same quarter a
year ago. But Emulex reported a net loss of $24.5 million. |
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Squeak! - The fastest growing profitable storage companies in the US |
| Companies are listed in
alphabetic order |
Supporting data |
| ADIC |
REDMOND, WASHINGTON - March 21,
2001 - ADVANCED DIGITAL INFORMATION CORPORATION (NASDAQ/NMS Symbol: ADIC), one
of the world's leading independent storage solutions providers, today announced
that sales and bookings to date for the current quarter ending April 30, 2001
remain consistent with the previously announced target of approximately 40
percent annual revenue growth. The Company noted that it may be growing
faster than underlying economic trends would suggest because of the impact of
new products, expansion of existing OEM sales channels and payback on
investments made in branded sales channels over the past several months.
REDMOND, WASHINGTON - February 14, 2001 - ADVANCED DIGITAL INFORMATION
CORPORATION (NASDAQ/NMS Symbol: ADIC) today announced sales grew 41 percent to
$90.1 million for the first quarter ended January 31, 2001 versus sales of $63.9
million for the same period a year ago.
In the fiscal year 2000 -
total revenue grew by 21 percent. |
| CNT |
MINNEAPOLIS, February 22, 2001
- CNT® (Computer Network Technology Corporation; Nasdaq: CMNT) today
reported financial results for the period ended January 31, 2001. For the
fourth quarter of fiscal year 2000, revenues totaled $47.0 million, an increase
of 46 percent from the fourth quarter of 1999.
For fiscal year 2000,
revenues totaled $176.1 million, an increase of $50.1 million, or 40 percent
above fiscal year 1999. |
| Datalink |
April 18, 2001 Datalink
Corporation (Nasdaq:DTLK), a premier independent information storage architect,
reported that revenues for the quarter ended March 31, 2001 rose 46% to
$40.9 million from $28.0 million in the same period a year ago.
For 2001, Datalink expects revenues to range from $165 to $175
million, a 20% to 27% gain over 2000.
...Later:-
MINNEAPOLIS
- June 21, 2001 - Datalink Corporation (Nasdaq:DTLK) today presented a
revised outlook for its second quarter results for the period ending June 30,
2001. Editor - The company now expects year to year revenue for the quarter
ending June 30, 2001 to decline. |
| EMC |
Hopkinton, Mass.- April 19,
2001 EMC Corporation (NYSE:EMC) today reported strong financial results for the
first quarter of 2001, reflecting its expanding lead in the worldwide market for
information storage solutions, one of the fastest-growing business segments in
today's economy. Information storage revenue for the first quarter grew 37%
compared with the first quarter of 2000 to $2.26 billion. This strong quarterly
growth was highlighted by 158% year-to-year revenue growth in networked
information storage, which totaled $833 million during the quarter; and 73%
year-to-year growth in information storage software revenue, which reached $468
million. Information storage-related revenue represented 97% of EMC's total
consolidated revenue during the quarter.
February 21, 2001 - EMC Reaffirms 2001 Goal and Comments on Business
Climate Through the fourth quarter of 2000, EMC's results have been extremely
strong despite the emerging slowdown in the United States economy. Thus far in
the first quarter of 2001, global demand for EMC's information storage systems,
software and services is strong. Pockets of the U.S. have been challenged by a
sharp drop-off in spending by Internet companies, but overall demand from large
global companies, deployment of networked information storage, and the growth of
international business continue to be strong. EMC continues to march toward its
revenue goal of $12 billion in 2001, in a total market anticipated to exceed $50
billion. Since last November, EMC Executive Chairman Mike Ruettgers has been
sharing his view that the largest risk to today's U.S. economic climate is the
risk of self-fulfilling prophecy. If enough pundits continue to predict that the
U.S. economy will slow further, it will do just that. This is a situation that
EMC, like the rest of the world, is watching closely. Given this uncertain U.S.
economic climate, EMC expects revenue growth to be in the range of 25-35%
for 2001.
January 23, 2001 - For the full 2000 fiscal year, EMC's total revenue
was $8.87 billion, up 32% over 1999. |
| INRANGE Technologies |
LUMBERTON, NJ, FEBRUARY 13,
2001 - INRANGE Technologies Corporation (Nasdaq: INRG), a leading provider of
networking products and services for storage area networks (SANs), and data and
telecommunications networks, today reported record revenues of $71.1 million,
net income of $7.4 million and earnings per share of $.09 for the quarter ended
December 31, 2000.
FOURTH QUARTER NET INCOME UP 148% The company reported record
revenues for the fourth quarter of $71.1 million, a 48% increase over
fourth quarter 1999, and up 11% sequentially over the third quarter 2000.
Revenues for the year ended December 31, 2000, were $233.6 million, a
16.5% increase over 1999. |
| Network Appliance |
SUNNYVALE, Calif.- Feb. 8, 2001
- Network Appliance, Inc. (Nasdaq:NTAP), reported revenues for the first nine
months of the current fiscal year totaled $780.3 million, an increase of
106% compared to revenue of $379.3 million for the first nine months of the
prior fiscal year. |
| Overland Data |
SAN DIEGO - Jan. 18, 2001 -
Overland Data, Inc. (Nasdaq: OVRL) today reported that revenues for the second
quarter were a record $43,586,000, a 59% increase over revenues of
$27,469,000 in the second quarter of the prior fiscal year.
Revenues for the six-month period of the current fiscal year were
$81,313,000, a 62% increase over revenues of $50,314,000 during the same period
of the prior fiscal year.
|
| OTG Software |
For the year ended December 31,
2000, OTG Software (NASDAQ:OTGS) revenues were $43,817,000 a 72% increase
over the previous year. Net income was $ 4.3M. From 10-K405 filing on
03/07/2001
Editor's note:- although the quoted revenue figure
is below our $50M threshold for this article, the company's revenue for the last
4 quarters, I believe would comfortably be above it. |
| QLogic |
Aliso Viejo, Calif., January
23, 2001 – QLogic Corporation (Nasdaq:QLGC) announced today that gross
revenues for its third fiscal quarter ended December 31, 2000 rose 73% to a
record $97.2 million, compared to the $56.4 million reported for the same
quarter a year ago.
For the first nine months of fiscal 2001, gross
revenues expanded 72% to $262.2 million, compared to $152.1 million for the
same period a year ago. |
| Qualstar |
CANOGA PARK, Calif., January
31, 2001 - Qualstar Corporation (Nasdaq: QBAK), a manufacturer of tape
libraries, today reported that revenues grew 39.6% to $15.5 million
during the second quarter ended December 31, 2000 over the same period last
year.
Revenues for the six months ended December 31, 2000 were $29.4
million, a 30.7% increase over the $22.5 million during the same period of the
prior fiscal year. |
| XIOtech |
Eden Prairie, Minn., April 9,
2001 - XIOtech® Corporation, a wholly owned subsidiary of Seagate Technology
Inc. today announced that its revenue increase of 386 per cent from 1999
to 2000 is anticipated to outpace that of its competitors in the worldwide disk
storage systems market, according to a new report from International Data
Corporation (IDC). In its 2000 Worldwide Disk Systems Market Forecast and
Analysis, IDC estimates that XIOtech's growth will be higher than all other disk
storage systems vendors including the market leaders. Disk storage systems
include SANs, NAS, disk arrays and disk systems internal to servers.
Editor's note:- XIOtech is a privately owned company and for
commercial reasons does not want to disclose exact details of its revenue at
this time. However they have satisfied me that they should definitely be listed
in this article. |
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