It didn’t take long for Kingston Technology Co. Inc. of Fountain Valley to reassert itself as the largest minority-owned firm based in Orange County.
Kingston Technology left the Orange County Business Journal list after its owners John Tu and David Sun sold 80% of it in 1996 to Softbank for $1.5 billion in cash and stock. But last year, Softbank decided to sell the company back to Tu and Sun for $450 million.
As a result, Kingston is back on the list, reporting revenue of $1.4 billion in 1999, easily topping No. 2 Family Automotive Group of San Juan Capistrano.
The list ranks by revenue 30 companies that are 51% or more minority-owned and that have their headquarters in Orange County. Eight firms declined to provide revenue figures, which were estimated by the Business Journal.
Nine of the companies are in high tech, while another five are distributors, three are fast-food chains, and two firms each are in auto dealerships, supermarkets, real estate and manufacturing.
Ethnic Chinese dominate these minority businesses, accounting for 44% of the 54 owners who are listed by the 30 companies. In all, 24 of the owners are Chinese (including Taiwanese and Chinese-Vietnamese). They are followed by Hispanics (11 owners), African-Americans (five), Vietnamese and Indians (three each), and Korean, East Indian, Pacific Asian and Filipino (one each). In addition, four Caucasians are listed as co-owners.
The 30 companies on this year’s list grew their aggregate revenue 16% to $2.9 billion in 1999. They currently employ 10,513 company-wide, an 11% increase over last year, and 5,332 in Orange County, a 15% increase.
The total revenue on this year’s list is 76% larger that the aggregate from last year’s list. However, this is skewed by the addition of Kingston. When this year’s Nos. 2 to 29 are compared with the 28 companies on last year’s list, the revenue totals show a decline of 9%, to $1.5 billion.
From No. 1 to Bankruptcy
The key reasons were the bankruptcies of two large companies on last year’s list. ProGen Technology Inc., a Tustin-based computer manufacturer and distributor, reported $279 million in revenue on last year’s list, when it was ranked No. 1. It had predicted it would increase revenue 25% but it actually declared Chapter 11 bankruptcy, saying it owed its 20 largest creditors more than $22 million. As of last week, its phone was out of service.
Garden Grove-based Techmedia Computer System Corp., No. 5 on last year’s list when it said it had $160 million in revenue, was once one of Orange County’s rising high-tech stars. But it filed for Chapter 7 bankruptcy last year after it lost a $92 million judgment to a Korean computer manufacturer and bank.
The fastest-growing companies by revenue on this list included No. 6 The Linksys Group Inc. of Irvine, up 65% to $107.5 million; No. 4 Princeton Graphic Systems Inc. of Santa Ana, up 49% to $168 million; and No. 12 Sanders Engineering Co. of Yorba Linda, up 41% to $42.6 million.
The companies reporting declines in revenue included: No. 24 Vanco Trading Inc. of Westminster, down 21% to $15 million; No. 13 CSS Laboratories Inc. of Irvine, down 16% to $38 million; and No. 15 Pacific Rim Capital Inc. of Irvine, down 13% to $25.5 million. (Pacific Rim said its decline was due to a change in accounting methods.)
Employment Up
The biggest employee growth company-wide was posted by Kingston, up 67%, to 1,594. Other big growers included: The Linksys Group, up 28% to 276 employees; No. 9 Checkmate Staffing Inc. of Orange, up 71% to 1,200; and Pacific Rim Capital, up 37% to 26 employees.
Countywide, the fastest growing firm again was Kingston, up 75% to 1,176, followed by Checkmate, up 57% to 118 employees.
Company-wide, those reducing their workforce included: No. 3 Tawa Supermarkets Inc. of Buena Park, down 15% to 1,800; No. 21 Systems Integrated, down 50% to 50 employees; and No. 18 iBASEt, down 27% to 120 employees.
System Integrated also cut its OC employment 33% to 10 employees; and iBASEt’s local employment was down 11% to 80.
As usual, owners of a couple of the companies didn’t want to be on the list, saying it doesn’t matter whether they are minorities.
Seven companies are new to this year’s list. Besides Kingston, they are: No. 5 Tarsadia Hotels of Costa Mesa; Checkmate Staffing; No. 10 PC Systems Design of Brea; No. 14 Pick Up Stix of San Clemente; Pacific Rim Capital; and No. 16 Capri Capital of Irvine.
Dropping off the list, besides Techmedia and ProGen, were last year’s No. 24 Apollo Electric/Holt Electric of Brea, No. 26 Source Diversified of Laguna Hills, and No. 27 Benelec Corp. of Santa Ana.
