Zeev, seen this, LIFC, Fast Tech: 2005 Winners And Losers
Paul M. Murdock, 01.27.06, 8:30 AM ET
NEW YORK - As a group, our previous list of the 25 Fastest-Growing Technology Companies rewarded investors over the past year. The 25 stocks showed an average gain of 18% between Jan. 14, 2005, and Jan. 13, 2006, versus 11% for the Nasdaq Composite. Four of the stocks were up 100% or more.
The biggest 2005 winner: LifeCell (nasdaq: LIFC - news - people ), which rose134% during the one-year stretch. The Branchburg, N.J., biotech company sells extracts from human tissue for use in reconstructive surgery. It ranks 22nd on the Forbes 2006 list of the Fastest-Growing Technology Companies.
LifeCell’s stock took a brief hit in late September after it initiated a product recall. This setback contributed to a 43% decline in latest 12-month earnings per share of 38 cents, on revenue of $84 million. Security analysts reporting to Thomson IBES expect LifeCell to deliver per share earnings of 45 cents this year, a 25% increase over expected 2005 profits.
Drugmaker Celgene (nasdaq: CELG - news - people ), software manufacturers Digital Insight (nasdaq: DGIN - news - people ) and eCollege.com (nasdaq: ECLG - news - people ) all doubled in price over the past 12 months. As a result, all three reappear on our 2006 Fast Tech list.
Losers? Drug tester SFBC International (nasdaq: SFCC - news - people ), which ranked 11th on our 2005 Fastest-Growing Technology list, fell 51% over the past 12 months.
SFBC stirred up controversy with some of its drug-testing practices, and, as a result, they are responding to an informal Securities and Exchange Commission inquiry along with a number of class-action suits from investors. SFBC has rejected the allegations based on the findings of its independent counsel review, which it forwarded to the Senate Finance Committee as requested by Sen. Charles Grassley. But the company recently changed top management.
Although SFBC’s $362 million in trailing-12 month revenue shows a 152% year-over-year increase, its current difficulties and strong drop in share price kept it off of this year’s Fast Tech list.
Another casualty from the 2005 Fast Tech list is Magma Design Automation (nasdaq: LAVA - news - people ). In early April, the Santa Clara, Calif., software designer lowered its fiscal 2006 earnings guidance and suffered a 49% selloff in the days following the announcement. An aggressive buyback campaign helped rally the stock, but it is still off 22% for the 12-month stretch.
See the following table for the one-year performance data on all 25 of the Forbes Fastest-Growing Tech Stocks from 2005.
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