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Squeak! - The Fastest Growing STORAGE companies in 2003

top 5 companies had over 80% year on year revenue growth

See also:- click here for an updated version of this popular article

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history:- the Fastest Growing STORAGE companies:- 2001, 2002, 2003, 2004
This is the 3rd year I've published the fastest growing storage companies list. This year as the market is on the brink of recovery there were a lot more companies to consider for inclusion. I also changed two important criteria for listing companies compared to previous years.
  • I shortened the qualifying period from a full year, down to as little as a recent quarter. The storage landscape will change a lot in the second half of 2003. As we go through this transformation I think that short term indicators are more reliable signals of what's happening.
  • I removed the qualifying filter that a company had to be profitable during the growth period. With recovery just round the corner and the weeding out of weaker companies by 3 years of IT recession, I figured that even conservatively managed companies might take a gamble on following growing market demand now and leaving the profit side of othings to follow later.

..........The fastest growing storage companies in 2003..........

Companies are listed in alphabetic order Supporting data

ADIC May 15, 2003 – ADIC today announced sales for its second quarter ended April 30 exceeded $100 million. Sales were up almost 4% from the first quarter and up nearly 25% from the same period last year.

BakBone Software April 24, 2003 - BakBone Software reported preliminary revenue results for the fiscal year ended March 31, 2003. Final reported results are expected to show revenue in line with management's previous guidance of US$18.0 million to US$18.5 million, which represents growth in excess of 82% over revenues for the previous fiscal year.

Dell Computer Re: quarter ended May 2, 2003 - Dell's Revenue from external storage systems was up 65%.

FalconStor Software April 24, 2003 - FalconStor Software announced its financial results for the first quarter ended March 31, 2003. For the first quarter of 2003, net revenues increased 86% to $3.7 million, compared with the same period a year ago.

McDATA May 29, 2003 - McDATA reported revenue results of $103.2 million for its first quarter ended April 30, 2003, reflecting a 60% year-over-year increase.

M-Systems April 15, 2003 - M-Systems announced financial results for the first quarter ended March 31, 2003. Revenues were $22.1 million, representing an increase of 7% compared to the fourth quarter of 2002, and 93% compared to the first quarter of 2002. (For the year ended December 31, 2002, revenues increased by 45% to $64.8 million, compared to revenues in 2001.)

NSI Software April 22, 2003 - Building on more than 100% revenue growth in CY2002, NSI Software today announced that sales in the first quarter of 2003 grew 57% over the same quarter last year.

Overland Storage April 24, 2003 – Overland Storage reported, for the quarter ended March 31, 2003, record revenue of $56.2 million an increase of 31% compared to the prior fiscal year.

QLogic April 29, 2003 - QLogic announced net revenues on a GAAP basis for the full fiscal year 2003 were a record $440.8 million, up 28% from the $344.2 million reported last year.

Rambus April 14, 2003 - Rambus reported financial results for its second fiscal quarter ended March 31, 2003. Revenue for the quarter was $28.1 million, up 19% over the same period last year and up 9% from the previous quarter.

SanDisk April 16, 2003 - SanDisk announced results for its first quarter ended March 31, 2003. Total first quarter revenues were $174.5 million, up 88% compared to the first quarter of 2002.

Silicon Image April 16, 2003 - Silicon Image reported financial results for its first quarter ended March 31, 2003. Record revenue of $24.7 million was achieved for this quarter. This is a 3.7% percent increase over the $23.8 million achieved in the fourth quarter of 2002 and is a 44.4% increase over he first quarter of 2002.

Western Digital April 24, 2003 - Western Digital Corp reported revenue of $706 million March 28, 2003 - year-over-year revenue growth of 19%.

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Privately owned companies present a particular problem to compilers of this sort of list. I know of many storage companies which have revenue growth as high or even higher than those listed in this article. However, their owners did not want to signal to competitors how well they were doing, and I have respected their wishes.
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Survival of the Fittest - June 2003
Over 190 of the top 1,000 storage companies which existed on January 1, 2000 have gone bust, been acquired, renamed or merged with another company. Despite that the total number of active storage manufacturers and storage software companies has increased.

Although overall spending on storage in 2002/3 increased at a modest level, some product segments gained from the overall IT recession. As customers had smaller IT budgets to spend they were more likely to adopt new technologies which simplified their operations, cut down administration costs, made better use of assets or just made them happy.

In the last category we're starting to see the consumer market become an important multibillion dollar part of the storage market. In the long term the consumer market has the capacity to overtake the spending on storage in the IT market. But we're still about 3 to 5 years away from seeing terabyte disk storage being as generally available in the home as CD players are today.

In the storage software market, Gartner reported that the average revenue growth for companies outside the top 10 biggest (by revenue) was 15%. Many companies in the solid state disk segment experienced high revenue growth, but did not want to disclose details in this article. In a related segment, driven by the cosumer entertainment market, Gartner reported 72% year on year revenue increase for the Removable Solid-State Storage segment.

In a report last summer Peripheral Concepts predicted that spending on SAN and NAS would grow 30% in 2003. So although there are still hundreds of "me too" companies in networked storage, there's more enough spending to go around.

But not everything in the storage market is rosy. The market for tape libraries, which was a high growth segment in 2001, experienced revenue decline in 2002 according to Freeman Report. It's not that large organisations have stopped doing backups, but STORAGEsearch believes that disk to disk backup has started to impact the tape market. I don't think the tape market will ever get back to high revenue growth. Freeman Report predicts 7% growth for the period 2004 to 2008. In a recent article Sony was bullish about the prospects for high end tape systems.

Another year, another list... You can read your own runes by following up the links for the fast growing companies named in this article.
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