Healthcare, real estate and technology companies are main movers of the Orange County economy, so it’s no surprise that they dominated the list of fastest-growing businesses here.
That’s certainly the case this year, with eight of the 10 fastest-growing public companies by revenue being medical device makers, drug developers, mortgage lenders and investors, or homebuilders. In all, there were 16 technology, 14 healthcare and six real estate-related companies on the list.
The Business Journal’s list was compiled by Newport Beach-based investment bank Roth Capital Partners LLC. It ranked companies by revenue growth between the 12-month periods ended June 30, 2002, and June 30, 2005.
Overall, the 50 companies on the list reported sales of $36.7 billion for the year ended June 30, 2005, up 105% from what they posted three years ago.
But this year’s top 50 companies had about 15% less revenue than last year’s crop. This year’s list also included 17 companies that weren’t on last year’s ranking. It’s the biggest change in composition of the list since the tech meltdown.
One notable departure was last year’s list-topper: Cardiac Science Inc.
The former Irvine-based maker of defibrillators used to treat heart attacks combined with Quinton Cardiology Systems Inc. of Bothell, Wash., where the company now is based.
Notching the No. 1 spot this year was Irvine-based Ista Pharmaceuticals Inc., which is developing drugs to treat eye ailments.
Tiny Ista’s 12-month sales through June 30 were $5.3 million,1,228% higher than three years ago.
In January, Ista wrapped up a $56 million public stock sale to fund its drug development. The drug developer debuts on this year’s list.
No. 2 Costa Mesa-based armor maker Ceradyne Inc. jumped seven spots thanks to steady orders from the military. It posted a 480% jump in sales to $299.4 million during the past three years. Ceradyne makes ceramic-based armor for soldiers and their vehicles.
No. 3 Newport Beach-based Impac Mortgage Holdings Inc. moved up two spots on the list amid a booming housing market that’s nevertheless showing signs of a slowdown.
Impac, which buys, sells and packages mortgage loans into bonds for sale, posted a 456% rise in sales to $1.1 billion during the past three years.
But the real estate investment trust recently was hit hard on Wall Street after paring back its dividend because its profits are being squeezed by higher interest rates.
Subprime mortgage lender New Century Financial Corp. slipped two spots to No. 4. The real estate investment trust is one of the largest companies on the list, with $2 billion in sales as of June 30, up 363% from 2002.
Subprime lenders, which make loans to people with imperfect credit, have seen loan volume skyrocket in the past few years.
The sector is heavily concentrated in Orange County, with competitors Ameriquest Capital Corp. of Orange, Fremont Investment & Loan in Anaheim and H & R; Block Inc.’s Option One Mortgage in Irvine based here.
Rounding out the top five was Irvine-based Micro Therapeutics Inc., which makes devices to treat blood vessel-related diseases.
Micro Therapeutics saw sales grow 336% to $43.5 million during the past three years. Earlier this month, Plymouth, Minn.-based ev3 Inc. announced plans to pay $110 million for the 30% of Micro Therapeutics Inc.’s stock that it doesn’t own.
Rounding Out Top 10
Others in the top 10: Newport Beach homebuilder William Lyon Homes Inc. at No. 6, with a 266% jump in sales; San Clemente dental device maker BioLase Technology Inc. at No. 7, with a 263% rise in sales; Irvine homebuilder and real estate developer California Coastal Communities Inc. at No. 8, with a 254% gain in revenue; Santa Ana eye device maker Advanced Medical Optics Inc. at No. 9, with a 235% surge in sales; and Santa Ana school operator Corinthian Colleges Inc. at No. 10, with a 206% jump in revenue.
The biggest revenue generator on the list was real estate related: No. 33 First American Corp., a Santa Ana-based title insurer. First American posted a 72% rise in sales to $7.2 billion during the past three years.
Technology companies made a comeback this year, accounting for 16 of the top 50 fastest-growing in the sector, compared to 11 last year.
Irvine-based chipmaker Broadcom Corp. was the leading technology company at No. 13. Broadcom moved up from No. 24 last year with a 150% jump in three-year sales.
The next technology name on the list was Santa Ana-based circuit board maker TTM Technologies Inc. at No. 18.
TTM Technologies debuted with a 139% rise in sales to $237.5 million during the past three years.
Bid adieu to No. 43 auto financier WFS Financial Inc., which posted 41% growth in sales to $1.1 billion in the past three years.
WFS Financial’s parent, Irvine-based Westcorp, last month agreed to be bought by Charlotte, N.C.-based Wachovia Corp. for $3.4 billion.
Wachovia also said it plans to acquire the 16% of WFS Financial that Westcorp didn’t own for $490 million as part of the deal.
THE NUMBERS
Employees: 160
Market value: $149 million
3-year sales growth: 1,228%
Annual sales through June 30: $5.3 million
Annual loss: $45.5 million
Company: eye drug developer
