This year’s crop of Orange County’s smaller public companies produced higher sales and a lower loss than they did a year earlier.
Cost-cutting moves helped the 50 companies on this week’s list slice their cumulative loss to $136 million from $267 million in 2004.
Revenue at the companies grew 8% to nearly $1.2 billion last year.
Local employment at the public companies fell 6% to 3,328 workers last year. Companywide employment rose 2% to 6,419.
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The companies showed signs of beefing up, growing assets by 17% to $3.7 billion in 2005.
This week’s list covers publicly traded companies ranked No. 76 to No. 125 based on sales for the most recently reported four quarters. Some companies trade on the Pink Sheets and haven’t reported results for the 12 months through Dec. 31.
The Business Journal produced a list of the 75 largest public companies in OC in the April 10 issue. Revenue at the largest public companies was $104 billion, up 19% from a year ago.
Twenty-nine of the smaller companies recorded improved revenue in the past year. Sixteen saw lower sales, with two posting no change and three not filing results since 2004.
The list is heavy with technology and medical device makers, which account for 35 of the companies.
No. 76 SM & A; Corp. topped the list.
Newport Beach SM & A;, which provides consulting services for companies looking to win contracts from governments, businesses and other groups, saw its sales rise 11% to $76.7 million, versus a year earlier. Its profit fell 13% to $8.4 million.
SM & A; added clients outside its core aerospace and defense industries last year.
No. 77 BioLase Technology Inc. grabbed the second spot on the list, with sales of $62 million, up 2% from last year. Its loss narrowed to $17.5 million from $23.2 million in 2004.
The San Clemente-based company makes lasers used in dental procedures.
No. 78 Diedrich Coffee Inc. posted $51.1 million in sales, down 7% from a year ago. Its profit jumped from $62,100 in 2004 to $13.1 million last year.
Irvine-based Diedrich’s profit benefited from a $16 million gain from the sale of its international Gloria Jean’s operation. The company said the gain will be used to grow U.S. operations.
In December, Diedrich named Stephen V. Coffey as chief executive to replace Roger M. Laverty, who had led the company for about two years.
Coffey recently was a senior executive of Chevys Inc., which now is part of Cypress-based Real Mex Restaurants Inc.
Coffey also was the former chief executive of Edwards Theatres Inc., which he led through a bankruptcy. Edwards now is part of Regal Entertainment Group Inc. in Knoxville, Tenn.
Several local business banks performed well, despite the Federal Reserve’s policy of raising the key fed funds interest rate, which now stands at 4.75%, in quarter-point increments since June 2004.
No. 82 Pacific Mercantile Bancorp was the top ranking bank on the list with $47.7 million in interest income, up 37% from a year earlier. For banks, the Business Journal uses interest income as a revenue equivalent. Costa Mesa-based Pacific Mercantile recorded a $5.7 million profit, up 17% from last year.
The bank cut close to 60 workers in the summer when it announced plans to shutter its wholesale mortgage banking unit by the end of September. The problem: growing costs amid rising interest rates.
Pacific Mercantile’s OC employee count fell 35% to 100 in the past year with overall employees down 31% to 127.
No. 89 California First National Bancorp in Irvine recorded an 8% rise in revenue to $37.1 million and a 7% gain in profit to $9.4 million.
One notch lower at No. 90 was Pacific Premier Bancorp in Costa Mesa, which saw revenue rise 45% to $33.7 million and profit rise 7% to $7.2 million.
The final bank on the list was No. 114 Orange County Business Bank in Newport Beach. It posted a 181% jump in revenue to $7.6 million. Orange County Business Bank swung to a profit of $2.3 million in 2005, versus a loss of $1.5 million a year earlier.
Some companies on the list are struggling to survive.
No. 115 Endologix Inc. said in March that its accountant expressed “substantial doubt” about its ability to continue operating.
PricewaterhouseCoopers LLP cited Endologix’s history of losses for its concern. While the company’s sales last year grew 68% to $7.1 million last year, its loss nearly doubled to $15.5 million.
Endologix, which makes minimally invasive devices to treat aneurysms, said it has enough money to fund its operations through the end of the year.
Endologix Chief Executive Paul McCormick said that if appropriate, it could consider alternatives for additional financing, either through selling shares or getting loans. Endologix’s Securities and Exchange Commission filing noted that the device maker has accumulated losses of $99 million since it was founded in 1992.
Other companies are just struggling.
No. 103 Interchange Corp., an Irvine-based paid Internet search advertising business, reported a loss of $6.5 million last year after posting a profit of $1.5 million in 2004. The company’s sales fell 5% to $18.1 million.
In March, Interchange hired investment bank Merriman, Curhan, Ford & Co. to help it pursue a sale of its national search business. A sale would leave Interchange to focus on linking advertisers to searches done by people looking for products and services locally.
Last year, Interchange made a series of acquisitions honing its services for local searches, including buying Pasadena-based Local.com Inc., a Web site that allows people to search for local businesses.
Off the List
Slipping off the list was last year’s No. 87, SI Technologies Inc. in Tustin. SI was bought by Malvern, Pa.-based Vishay Intertechnol-ogy Inc. for roughly $18 million plus up to $12 million in debt.
Another company may slip off the list next year. A week ago, No. 106 netGuru Inc. said it plans to delist from Nasdaq if the company is unable to sell its remaining operations in the next few months.
NetGuru, which provides technology and engineering services, said the move would help cut costs.
Last fall, netGuru closed the sale of its Research Engineers International business to Exton, Pa.-based Bentley Systems Inc.
Sales at netGuru fell 29% to $13.2 million in 2005. It swung to a profit of $17.4 million, versus a loss of $8.2 million in 2004.
