This year’s lists of fastest-growing public companies based in Orange County feature a diverse group in the local technology sector, with large and relatively small companies taking different paths to their places in the rankings.
What was one list has been divided into three lists for the first time: small, featuring companies with annual revenues of up to $100 million; medium, with revenues between $100 million and $500 million; and large, with revenues of more than $500 million. The rankings are based on percentage revenue growth across a two-year span, comparing 12-month revenue through June 2013 with that from the same period through June 2011 (lists start on page 46).
Acquisitions helped some of the largest tech companies here make the lists—including Western Digital Corp., Ingram Micro Inc., Broadcom Corp. and Microsemi Corp.
Revenue growth for entries in the small company category—including Fountain Valley-based MEDL Mobile Holdings Inc. and DecisionPoint Systems Inc. in Irvine—was fueled by emerging technology trends the companies helped create.
Universal Electronics Inc., the sole representative of the tech sector among medium-sized companies, got a boost from various sources, including the expansion of cable TV systems overseas and this year’s release of new gaming consoles from major makers such as Sony, Microsoft and Nintendo.
Irvine-based drive maker Western Digital was No. 3 in the large companies category as sales topped $15.3 billion in the 12 months through June, up 61.1% over two years (see related story, page 4).
HGST
The company’s 12-month courtship of San Jose-based Hitachi Global Storage Technologies Ltd. earned the blessing of U.S. and international regulators in March 2012. The $4.8 billion buy, which added key corporate customers and an entree to the growing server and storage market, helped Western Digital become the world’s largest drive maker in revenue and unit sales.
Ingram Micro’s $840 million buy of Indianapolis-based wholesale mobile device distributor BrightPoint Inc. in October 2012 helped the company post sales of $40.9 billion through June, up 14.5%. The deal helped the Santa Ana-based company take the No. 13 spot on the list of large companies, adding more than an estimated $4 billion to $5 billion to its total for the year ended in June.
Ingram Micro is the world’s largest distributor of computers, software and other technology products.
Smaller strategic acquisitions helped No. 14 Broadcom Corp. in Irvine hold off other large companies on the list, but the escalating smartphone war between its two largest customers, Apple Inc. and Samsung Electronics Co., has been the big growth driver as sales topped $8.2 billion in the 12 months through June, up 11.6% over two years. Broadcom specializes in communication chips that power Wi-Fi, Bluetooth, GPS and other applications.
Microsemi Corp. saw its sales rise 30.1% to $989 million. The Aliso Viejo-based chipmaker has long been a regular acquirer, pursuing a roll-up strategy that brings steady revenue growth. The company got an added boost in late 2011 when it acquired Canada-based Zarlink Semiconductor Inc. for $633 million, its biggest buy ever. It has steadily added smaller deals since and took the No. 5 spot on the large-companies list this year.
Santa Ana-based Universal Electronics has been making remote controls and related software for more than 25 years, but a recent surge in broadband and satellite cable users in developing countries has fueled sales.
The company also is well positioned to pick up new business from the summer debut of Nintendo Co.’s Wii U and the upcoming launch of gaming consoles by Sony Corp. and Microsoft Corp., according to Chief Executive Paul Arling.
“We credit our success over the last few years with continued strength in subscription broadcasting, with particular growth areas in regions of Latin America and Asia,” he said. “Also, new opportunities in the gaming and mobile markets are starting to be realized, opening up potential for continued growth in those areas.”
Universal Electronics posted sales of $493.4 million in the 12 months through June, up 20.7% in two years.
Startup MEDL Mobile Holdings is the only newcomer on the industry list.
The company posted revenue of $2.6 million in the 12 months through June, up 181.5% in two years. The jump was good enough to secure the No. 3 ranking among small companies.
MEDL Mobile began in 2008 as a custom mobile application developer targeting big customers, such as fast-food chain Taco Bell and department store operator Kohl’s, but it has transitioned into releasing its own applications.
Its latest offering, dubbed Hang w/, allows fans to follow their favorite musicians, athletes and actors through a live stream. It has been downloaded by more than 500,000 users since its April launch, according to the company.
MEDL Mobile partnered with Irvine-based Specific Media to monetize the application through ad placements before and after connected live feeds, or broadcasts. Separate deals with entertainers could prove lucrative as MEDL Mobile earns up to 50% on some revenue-sharing agreements with celebrities on products sold through the ads.
“We’ve definitely been on fire,” said Chief Executive Andrew Maltin. “It’s just a matter of continuous growth.”
Rising demand for enterprise software applications, particularly for mobile services in the field, has boosted sales at app and software maker DecisionPoint Systems Inc.
Revenue topped $61.3 million in the 12 months through June, up 11.2% in two years, good enough to secure No. 19 among small companies.
DecisionPoint, which has Avis, Wells Fargo and Johnson Controls as customers, has benefited from the growing trend of consumer electronic devices in the workplace.
Ann Taylor’s iPad
The company is handling iPad deployments at Ann Taylor stores across the country as the New York-based retailer aims to improve the shopping experience with interactive applications popular with younger consumers.
“The growth is really coming from applications that are prettier and sexier and more often than not used by customers to aid in the selling process,” said Greg Henry, DecisionPoint’s vice president of product management.
Download the 2013 OC’s FASTEST-GROWING PUBLIC COs list (pdf)
