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The Times 100 : The Best Performing Companies in California : THE BOTTOM LINE : Software Makers Get With Profit Program : One-third of the firms with the best return on equity are in high technology. But many new faces--from diverse industries--appeared.

TIMES STAFF WRITER

Major computer software makers for the most part were programmed for profitability in 1989.

More than any other industry, software stood out as the state’s top performer in The Times 100 survey measuring the best companies at earning profits for their shareholders during the past two years.

Five software firms finished among the top 20 companies in two-year average return on common equity, a key measurement of how a company and its management are performing for stockholders. In first place was Adobe Systems, a Mountain View software maker that averaged a profit of nearly 64 cents annually for every $1 that its common stockholders invested.

Despite the volatile nature of the high-technology business, it generally dominated the list, further showing that industry’s importance to the state’s economy. About one-third of the 100 companies on the list are in technology-related areas, either in the computer or medical technology business. But some high-tech firms slipped, such as Mountain View computer maker Sun Microsystems, which fell to 86th place from 43rd on the 1988 list.

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The Times 100 is compiled by MZ Group, a San Francisco business research firm, which uses a two-year average return on equity as a barometer of performance. MZ Group surveyed financial results of 830 California-based public companies, so simply making the list puts a firm in the top 13% of the large, publicly traded companies statewide.

To qualify for the list, companies must have common stock that has been publicly traded since December, 1987. Their headquarters must be in California, with 1989 sales of $50 million or more. Firms must also have shown a profit in 1988 and 1989, have debt less than two times equity and have no negative common equity during the past three fiscal years.

As a percentage, return on equity is figured by taking a company’s income minus preferred stock dividends and dividing it by average common shareholders equity. Special one-time gains are not counted as income.

Overall, 1989 was a solidly profitable year for the state’s largest companies. The cutoff for making the list has climbed in each of the three years The Times has published the list. This year, the lowest ROE was 15.6%, up from 15.3% last year and 13% the year before.

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A number of names well-known to consumers debuted on this year’s list.

Mattel Inc., the Hawthorne toy maker best known for its Barbie dolls, appeared in the No. 14 spot this year. Lewis Galoob Toys of South San Francisco, maker of “Micro Machines,” finished fourth.

Dreyer’s Grand Ice Cream in Oakland ranked No. 32. Sharper Image, a San Francisco-based catalogue and retail firm, debuted at 65; Avery International, a Pasadena maker of well-known labels used in offices, finished 94th. And Live Entertainment, a Van Nuys videocassette distributor that gained national notoriety when its chief executive, Jose Menendez, was slain last year, debuted on the list at No. 23. (Live has a new chief executive, and Menendez’s two sons have been charged with killing their father.)

Certain industries, notably banking, had their best year since The Times began publishing this special supplement two years ago. Three of the state’s biggest banks, Wells Fargo & Co. (38), Security Pacific Corp. (69) and BankAmerica (80) made the list for the first time. City National Corp. (43), a highly profitable Beverly Hills bank, made its third straight appearance.

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Smaller companies generally outperformed the state’s older industrial giants. Three out of four companies on The Times 100 profitability list had sales of less than $1 billion.

Top-performing companies often were relatively young. The top two finishers, Adobe and athletic shoe and sports shoe maker L.A. Gear in Los Angeles, did not exist 10 years ago.

A number of companies took a slide or dropped off altogether.

Making the biggest plunge was Brajdas Corp., a Woodland Hills wholesale distributor of electronic components. Fourth last year in profitability, the company disappeared from the list because of recent losses.

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Ashton-Tate in Torrance, one of the few big software makers to post a loss in 1989, was 28th on the 1988 ranking but failed to make this year’s list. The company has been burdened with problems in the latest version of its dBASE database program.

Another big drop was taken by television producer Spelling Entertainment, which fell from seventh to 57th. Spelling Entertainment, once known for such programs as “Charlie’s Angels” and “The Love Boat,” has struggled to sell its shows. One of its subsidiaries has distribution rights for the hit ABC show “Twin Peaks”; still, Cincinnati investor Carl H. Lindner, who controls the firm now, has been shopping for a buyer for several months.

With the big exception of Ashton-Tate, the profits in 1989 were in software, which involves developing the programs that instruct a computer. Although it is a highly competitive field and many who enter it flop, software can also be hugely profitable.

Why is software so profitable? One reason is the margins--earnings as a percentage of sales--are often fat because manufacturing costs are low and the cost of raw materials to make the products is negligible. A hit software program effectively turns on a tap of royalty payments that flow into a company for years.

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“It’s very much like having a hit novel,” Adobe Chief Executive John E. Warnock said.

Adobe’s gravy train has been its Postscript software, which creates and prints typefaces used in laser printers and Apple Computer’s Macintosh computer.

Despite its performance, Adobe can’t rest easy. It faces significant competition from a venture launched by software giant Microsoft and Apple Computer, which had been a longtime investor in Adobe. Apple sold its 16% stake in Adobe last year. Warnock said the venture is not a threat to Adobe’s success.

Other high-ranking software makers include Oracle Systems of Redwood Shores, Cadence Design Systems of San Jose, Software Publishing of Mountain View and Boole & Babbage of Sunnyvale, which made the list, even though its profit fell 25% from 1988.

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Statistical quirks accounted for some of the movement on the list: Chips & Technologies, in first place last year, finished 10th, even though the San Jose semiconductor firm’s income rose 50% last year. The reason: The equity base from which its return is computed is larger.

Syntex, a drug maker, moved up to sixth from 10th a year ago, as its profit rose 2%. The Palo Alto firm repurchased some of its shares, improving the return to remaining shareholders.

Among large, well-known companies, these rankings emerged: Cupertino-based Apple, 12th with a 40% average return over two years; Los Angeles oil company Atlantic Richfield, 30th with a 28% return, and Walt Disney, the Burbank entertainment giant, 35th with a 25% return.

Making the list does not mean that everything is going well for a company. Carl Karcher Enterprises, the Anaheim parent of the Carl’s Jr. fast-food chain, recently disclosed problems in its Arizona operations.

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Insurer 20th Century Industries of Woodland Hills finished 25th but faces uncertainty because of the passage two years ago of the insurance initiative Proposition 103. And Oracle Systems, the Redwood Shores software maker that finished seventh, disclosed flat earnings in March, resulting in shareholder lawsuits claiming that it made false and misleading forecasts.

And even L.A. Gear, one of the fastest-growing firms in the nation, has had its problems. The company disclosed late last year that it is being investigated by federal authorities in Massachusetts for allegedly underpaying duties on some shoe imports. The company has said it believes that it paid them.

THE TIMES 100

Companies ranked by income as a percentage of average common equity over two years.

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Rank: 1 ’88 rank: 3 Company: Adobe Systems* Industry: Computer Software City: Mountain View 2-year average return on equity: 63.8 1989 sales ($ millions): 121.4 1989 income ($ millions): 33.7 % change in income from 1988: 60

Rank: 2 ’88 rank: 6 Company: L.A. Gear* Industry: Sport & Leisure Footwear City: Los Angeles 2-year average return on equity: 61.0 1989 sales ($ millions): 617.1 1989 income ($ millions): 55.1 % change in income from 1988: 150

Rank: 3 ’88 rank: 2 Company: Franklin Resources* Industry: Investment Services City: San Mateo 2-year average return on equity: 47.4 1989 sales ($ millions): 253.3 1989 income ($ millions): 78.6 % change in income from 1988: 19

Rank: 4 ’88 rank: Company: Lewis Galoob Toys Industry: Games & Toys City: South San Francisco 2-year average return on equity: 45.7 1989 sales ($ millions): 227.7 1989 income ($ millions): 19.6 % change in income from 1988: 196

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Rank: 5 ’88 rank: Company: United Television** Industry: Radio & TV Broadcasting City: Beverly Hills 2-year average return on equity: 44.9 1989 sales ($ millions): 106.9 1989 income ($ millions): 62.6 % change in income from 1988: 689

Rank: 6 ’88 rank: 10 Company: Syntex* Industry: Drugs City: Palo Alto 2-year average return on equity: 44.5 1989 sales ($ millions): 1,349.4 1989 income ($ millions): 303.2 % change in income from 1988: 2

Rank: 7 ’88 rank: 9 Company: Oracle Systems* Industry: Computer Software City: Redwood Shores 2-year average return on equity: 44.1 1989 sales ($ millions): 769.3 1989 income ($ millions): 97.7 % change in income from 1988: 19

Rank: 8 ’88 rank: 12 Company: WD-40* Industry: Chemical Products City: San Diego 2-year average return on equity: 43.6 1989 sales ($ millions): 83.9 1989 income ($ millions): 15.8 % change in income from 1988: 1

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Rank: 9 ’88 rank: 5 Company: Neutrogena* Industry: Soaps & Cosmetics City: Los Angeles 2-year average return on equity: 43.2 1989 sales ($ millions): 203.2 1989 income ($ millions): 26.7 % change in income from 1988: 16

Rank: 10 ’88 rank: 1 Company: Chips & Technologies* Industry: Semicond. Manufacturing City: San Jose 2-year average return on equity: 42.9 1989 sales ($ millions): 217.6 1989 income ($ millions): 33.0 % change in income from 1988: 50

Rank: 11 ’88 rank: 8 Company: Boole & Babbage* Industry: Computer Software City: Sunnyvale 2-year average return on equity: 42.5 1989 sales ($ millions): 74.8 1989 income ($ millions): 5.0 % change in income from 1988: (25)

Rank: 12 ’88 rank: 16 Company: Apple Computer* Industry: Computer Products City: Cupertino 2-year average return on equity: 40.0 1989 sales ($ millions): 5,284.0 1989 income ($ millions): 454.0 % change in income from 1988: 13

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Rank: 13 ’88 rank: 11 Company: FHP Intl.* Industry: Medical Offices & Clinics City: Fountain Valley 2-year average return on equity: 38.6 1989 sales ($ millions): 699.1 1989 income ($ millions): 22.0 % change in income from 1988: 34

Rank: 14 ’88 rank: Company: Mattel Industry: Games & Toys City: Hawthorne 2-year average return on equity: 38.4 1989 sales ($ millions): 1,237.0 1989 income ($ millions): 79.6 % change in income from 1988: 122

Rank: 15 ’88 rank: Company: Telecredit* Industry: Electronic Payment Services City: Los Angeles 2-year average return on equity: 35.9 1989 sales ($ millions): 160.3 1989 income ($ millions): 27.9 % change in income from 1988: 12

Rank: 16 ’88 rank: Company: Covington Dev. Group Industry: Real Estate Development City: Fullerton 2-year average return on equity: 35.5 1989 sales ($ millions): 65.2 1989 income ($ millions): 4.2 % change in income from 1988: 159

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Rank: 17 ’88 rank: Company: Cadence Design Systems Industry: Computer Software City: San Jose 2-year average return on equity: 35.1 1989 sales ($ millions): 142.8 1989 income ($ millions): 27.8 % change in income from 1988: 112

Rank: 18 ’88 rank: Company: Quiksilver* Industry: Men’s and Boys’ Apparel City: Costa Mesa 2-year average return on equity: 34.7 1989 sales ($ millions): 70.7 1989 income ($ millions): 7.0 % change in income from 1988: 86

Rank: 19 ’88 rank: 24 Company: Software Publishing* Industry: Computer Software City: Mountain View 2-year average return on equity: 32.4 1989 sales ($ millions): 103.5 1989 income ($ millions): 17.0 % change in income from 1988: 26

Rank: 20 ’88 rank: 20 Company: Acuson Industry: Medical Imaging Products City: Mountain View 2-year average return on equity: 31.4 1989 sales ($ millions): 227.3 1989 income ($ millions): 38.1 % change in income from 1988: 38

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Rank: 21 ’88 rank: 40 Company: Kaufman & Broad* ** Industry: Real Estate Develop. City: Los Angeles 2-year average return on equity: 30.8 1989 sales ($ millions): 1,210.2 1989 income ($ millions): 81.4 % change in income from 1988: 69

Rank: 22 ’88 rank: 23 Company: Arden Group Industry: Grocery Stores City: Compton 2-year average return on equity: 30.6 1989 sales ($ millions): 346.9 1989 income ($ millions): 11.8 % change in income from 1988: 16

Rank: 23 ’88 rank: Company: Live Entertainment* Industry: Home Entertainment & Software City: Van Nuys 2-year average return on equity: 30.5 1989 sales ($ millions): 388.2 1989 income ($ millions): 26.1 % change in income from 1988: 49

Rank: 24 ’88 rank: 14 Company: CMS Enhancements Industry: Computer Storage Devices City: Tustin 2-year average return on equity: 30.1 1989 sales ($ millions): 200.4 1989 income ($ millions): 4.8 % change in income from 1988: 109

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Rank: 25 ’88 rank: 33 Company: 20th Century Ind. Industry: Prop.-Casualty Insur. City: Woodland Hills 2-year average return on equity: 29.8 1989 sales ($ millions): 704.3 1989 income ($ millions): 91.0 % change in income from 1988: 56

Rank: 26 ’88 rank: 22 Company: Gap* Industry: Clothing Stores City: San Bruno 2-year average return on equity: 29.4 1989 sales ($ millions): 1,586.6 1989 income ($ millions): 97.6 % change in income from 1988: 32

Rank: 27 ’88 rank: 19 Company: Armor All Products* Industry: Consumer Products City: Irvine 2-year average return on equity: 29.3 1989 sales ($ millions): 166.1 1989 income ($ millions): 25.1 % change in income from 1988: (7

Rank: 28 ’88 rank: Company: Caesars World* Industry: Gaming & Hotels City: Los Angeles 2-year average return on equity: 29.1 1989 sales ($ millions): 902.0 1989 income ($ millions): 66.9 % change in income from 1988: (13)

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Rank: 29 ’88 rank: 29 Company: Bridgford Foods* Industry: Food Products City: Anaheim 2-year average return on equity: 29.0 1989 sales ($ millions): 72.6 1989 income ($ millions): 3.5 % change in income from 1988: 32

Rank: 30 ’88 rank: 32 Company: Atlantic Richfield Industry: Oil & Gas City: Los Angeles 2-year average return on equity: 28.2 1989 sales ($ millions): 15,351.0 1989 income ($ millions): 1,953.0 % change in income from 1988: 23

Rank: 31 ’88 rank: 26 Company: Autodesk* Industry: Computer Software City: Sausalito 2-year average return on equity: 27.6 1989 sales ($ millions): 178.6 1989 income ($ millions): 46.4 % change in income from 1988: 42

Rank: 32 ’88 rank: Company: Dreyer’s Grand Ice Cream Industry: Ice Cream City: Oakland 2-year average return on equity: 26.8 1989 sales ($ millions): 227.3 1989 income ($ millions): 10.4 % change in income from 1988: 53

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Rank: 33 ’88 rank: Company: Digital Microwave* Industry: Radio-TV Communications Equip City: San Jose 2-year average return on equity: 26.2 1989 sales ($ millions): 96.6 1989 income ($ millions): 15.0 % change in income from 1988: 30

Rank: 34 ’88 rank: 69 Company: Carl Karcher Enterprises* Industry: Restaurants City: Anaheim 2-year average return on equity: 26.1 1989 sales ($ millions): 503.0 1989 income ($ millions): 18.7 % change in income from 1988: (10)

Rank: 35 ’88 rank: 31 Company: Walt Disney* Industry: Recreation & Films City: Burbank 2-year average return on equity: 25.4 1989 sales ($ millions): 4,594.3 1989 income ($ millions): 703.3 % change in income from 1988: 35

Rank: 36 ’88 rank: 15 Company: Sigma Designs* Industry: Computer Peripheral Equipment City: Fremont 2-year average return on equity: 25.3 1989 sales ($ millions): 76.2 1989 income ($ millions): 9.2 % change in income from 1988: 5

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Rank: 37 ’88 rank: 78 Company: Ross Stores* Industry: Clothing Stores City: Newark 2-year average return on equity: 25.0 1989 sales ($ millions): 733.5 1989 income ($ millions): 29.8 % change in income from 1988: 14

Rank: 38 ’88 rank: Company: Wells Fargo Industry: Banking City: San Francisco 2-year average return on equity: 24.5 1989 sales ($ millions): 5,648.9 1989 income ($ millions): 601.1 % change in income from 1988: 17

Rank: 39 ’88 rank: 60 Company: Williams-Sonoma* Industry: Housewares City: San Francisco 2-year average return on equity: 24.2 1989 sales ($ millions): 218.2 1989 income ($ millions): 9.0 % change in income from 1988: 72

Rank: 40 ’88 rank: Company: Quantum* Industry: Computer Storage Devices City: Milpitas 2-year average return on equity: 24.0 1989 sales ($ millions): 394.2 1989 income ($ millions): 41.3 % change in income from 1988: 221

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Rank: 41 ’88 rank: Company: Diagnostic Products Industry: Medical Diagnostic Products City: Los Angeles 2-year average return on equity: 23.7 1989 sales ($ millions): 60.3 1989 income ($ millions): 15.2 % change in income from 1988: 22

Rank: 42 ’88 rank: Company: Pacificare Health Systems* Industry: HMOs City: Cypress 2-year average return on equity: 22.9 1989 sales ($ millions): 646.2 1989 income ($ millions): 10.9 % change in income from 1988: 71

Rank: 43 ’88 rank: 36 Company: City National Industry: Banking City: Beverly Hills 2-year average return on equity: 22.8 1989 sales ($ millions): 475.8 1989 income ($ millions): 59.1 % change in income from 1988: 20

Rank: 44 ’88 rank: Company: Centex Telemanagement Industry: Management Consulting City: San Francisco 2-year average return on equity: 22.7 1989 sales ($ millions): 82.8 1989 income ($ millions): 7.0 % change in income from 1988: 47

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Rank: 45 ’88 rank: Company: Applied Material* Industry: Special Industrial Machinery City: Santa Clara 2-year average return on equity: 22.6 1989 sales ($ millions): 501.8 1989 income ($ millions): 51.5 % change in income from 1988: 29

Rank: 46 ’88 rank: 50 Company: Caesars New Jersey* Industry: Casinos & Hotels City: Los Angeles 2-year average return on equity: 22.6 1989 sales ($ millions): 343.4 1989 income ($ millions): 36.0 % change in income from 1988: 11

Rank: 47 ’88 rank: 39 Company: Price Co. Industry: Warehouse Stores City: San Diego 2-year average return on equity: 22.6 1989 sales ($ millions): 5,011.6 1989 income ($ millions): 117.0 % change in income from 1988: 24

Rank: 48 ’88 rank: 44 Company: Superior Industries Intl. Industry: Motor Vehicle Parts City: Van Nuys 2-year average return on equity: 22.5 1989 sales ($ millions): 246.1 1989 income ($ millions): 16.2 % change in income from 1988: 23

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Rank: 49 ’88 rank: Company: Network Equip. Tech.* Industry: Telecom. Equipment City: Redwood City 2-year average return on equity: 22.0 1989 sales ($ millions): 180.3 1989 income ($ millions): 20.3 % change in income from 1988: 27

Rank: 50 ’88 rank: 47 Company: Intel Industry: Semiconductor Manufacturing City: Santa Clara 2-year average return on equity: 21.8 1989 sales ($ millions): 3,126.8 1989 income ($ millions): 391.0 % change in income from 1988: (14)

Rank: 51 ’88 rank: 98 Company: Coast Distribution Systems Industry: Whlse.-Autos & Parts City: San Jose 2-year average return on equity: 21.5 1989 sales ($ millions): 139.5 1989 income ($ millions): 6.3 % change in income from 1988: 82

Rank: 52 ’88 rank: 55 Company: UniCare Financial Industry: Property-Casualty Insurance City: Irvine 2-year average return on equity: 21.5 1989 sales ($ millions): 73.0 1989 income ($ millions): 7.5 % change in income from 1988: 23

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Rank: 53 ’88 rank: Company: Robert Half International Industry: Personnel Services City: Menlo Park 2-year average return on equity: 21.3 1989 sales ($ millions): 234.5 1989 income ($ millions): 13.5 % change in income from 1988: 12

Rank: 54 ’88 rank: 42 Company: Rockwell International* Industry: Conglomerate City: El Segundo 2-year average return on equity: 21.2 1989 sales ($ millions): 12,518.1 1989 income ($ millions): 734.9 % change in income from 1988: (9)

Rank: 55 ’88 rank: 13 Company: Argonaut Group Industry: Property-Casualty Insurance City: Los Angeles 2-year average return on equity: 20.9 1989 sales ($ millions): 545.1 1989 income ($ millions): 81.6 % change in income from 1988: (20)

Rank: 56 ’88 rank: Company: Foothill Group Industry: Equipment Leasing, Lending City: Los Angeles 2-year average return on equity: 20.8 1989 sales ($ millions): 99.9 1989 income ($ millions): 10.7 % change in income from 1988: (18)

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Rank: 57 ’88 rank: 7 Company: Spelling Entertainment* Industry: Film & Video Prod. City: Los Angeles 2-year average return on equity: 20.6 1989 sales ($ millions): 143.9 1989 income ($ millions): 12.5 % change in income from 1988: (35)

Rank: 58 ’88 rank: 93 Company: Jacobs Engineering Group* Industry: Const. & Engineering City: Pasadena 2-year average return on equity: 20.2 1989 sales ($ millions): 793.6 1989 income ($ millions): 10.2 % change in income from 1988: 56

Rank: 59 ’88 rank: 27 Company: Pic ‘N’ Save Industry: Variety Stores City: Dominguez 2-year average return on equity: 19.8 1989 sales ($ millions): 475.2 1989 income ($ millions): 30.9 % change in income from 1988: (34)

Rank: 60 ’88 rank: 57 Company: Clorox* Industry: Consumer Products City: Oakland 2-year average return on equity: 19.7 1989 sales ($ millions): 1,356.3 1989 income ($ millions): 145.6 % change in income from 1988: 10

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Rank: 61 ’88 rank: 52 Company: Mercury General Industry: Property-Casualty Insurance City: Los Angeles 2-year average return on equity: 19.6 1989 sales ($ millions): 515.2 1989 income ($ millions): 33.9 % change in income from 1988: 60

Rank: 62 ’88 rank: Company: Safeguard Health Enterprises Industry: Health Services City: Anaheim 2-year average return on equity: 19.4 1989 sales ($ millions): 61.7 1989 income ($ millions): 3.1 % change in income from 1988: (9)

Rank: 63 ’88 rank: 49 Company: Community Psychiatric Centers* Industry: Hospitals City: Laguna Hills 2-year average return on equity: 19.4 1989 sales ($ millions): 319.9 1989 income ($ millions): 72.0 % change in income from 1988: 2

Rank: 64 ’88 rank: 35 Company: Amdahl Industry: Computer Products City: Sunnyvale 2-year average return on equity: 19.0 1989 sales ($ millions): 2,101.1 1989 income ($ millions): 153.0 % change in income from 1988: (28)

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Rank: 65 ’88 rank: Company: Sharper Image* Industry: Specialty Retailer City: San Francisco 2-year average return on equity: 19.0 1989 sales ($ millions): 204.2 1989 income ($ millions): 5.0 % change in income from 1988: 4

Rank: 66 ’88 rank: 46 Company: Times Mirror Industry: Media City: Los Angeles 2-year average return on equity: 18.9 1989 sales ($ millions): 3,475.0 1989 income ($ millions): 298.0 % change in income from 1988: (10)

Rank: 67 ’88 rank: Company: Businessland* Industry: Computer & Software Retail City: San Jose 2-year average return on equity: 18.8 1989 sales ($ millions): 1,188.7 1989 income ($ millions): 32.9 % change in income from 1988: 75

Rank: 68 ’88 rank: 72 Company: Anthony Industries Industry: Sporting Goods, Pools City: Los Angeles 2-year average return on equity: 18.8 1989 sales ($ millions): 381.9 1989 income ($ millions): 13.4 % change in income from 1988: 30

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Rank: 69 ’88 rank: Company: Security Pacific Industry: Banking City: Los Angeles 2-year average return on equity: 18.7 1989 sales ($ millions): 10,018.4 1989 income ($ millions): 740.6 % change in income from 1988: 16

Rank: 70 ’88 rank: 71 Company: Longs Drug Stores* Industry: Drug Stores City: Walnut Creek 2-year average return on equity: 18.7 1989 sales ($ millions): 2,110.6 1989 income ($ millions): 61.3 % change in income from 1988: 10

Rank: 71 ’88 rank: 61 Company: Measurex Industry: Measurement Instruments City: Cupertino 2-year average return on equity: 18.5 1989 sales ($ millions): 285.3 1989 income ($ millions): 40.7 % change in income from 1988: 10

Rank: 72 ’88 rank: Company: Harding Associates* Industry: Engineering Services City: Novato 2-year average return on equity: 18.2 1989 sales ($ millions): 61.9 1989 income ($ millions): 4.0 % change in income from 1988: 22

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Rank: 73 ’88 rank: 18 Company: Atari Industry: Computer Products City: Sunnyvale 2-year average return on equity: 18.1 1989 sales ($ millions): 423.6 1989 income ($ millions): 4.0 % change in income from 1988: (90)

Rank: 74 ’88 rank: 66 Company: National Medical Enterprises* Industry: Hospitals City: Santa Monica 2-year average return on equity: 18.1 1989 sales ($ millions): 3,963.0 1989 income ($ millions): 213.0 % change in income from 1988: 11

Rank: 75 ’88 rank: Company: Furon* Industry: Industrial Products City: Laguna Niguel 2-year average return on equity: 17.8 1989 sales ($ millions): 332.2 1989 income ($ millions): 10.3 % change in income from 1988: 4

Rank: 76 ’88 rank: Company: Emulex* Industry: Computer Peripheral Equipment City: Costa Mesa 2-year average return on equity: 17.7 1989 sales ($ millions): 148.7 1989 income ($ millions): 13.3 % change in income from 1988: 45

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Rank: 77 ’88 rank: 65 Company: Dionex* Industry: Measurement Instruments City: Sunnyvale 2-year average return on equity: 17.7 1989 sales ($ millions): 75.5 1989 income ($ millions): 12.8 % change in income from 1988: 11

Rank: 78 ’88 rank: Company: Amplicon* Industry: Computer Renting & Leasing City: Santa Ana 2-year average return on equity: 17.5 1989 sales ($ millions): 137.9 1989 income ($ millions): 5.2 % change in income from 1988: (39)

Rank: 79 ’88 rank: 88 Company: Potlatch Industry: Paper & Forest Products City: San Francisco 2-year average return on equity: 17.4 1989 sales ($ millions): 1,227.6 1989 income ($ millions): 136.7 % change in income from 1988: 22

Rank: 80 ’88 rank: Company: BankAmerica** Industry: Banking City: San Francisco 2-year average return on equity: 17.4 1989 sales ($ millions): 11,389.0 1989 income ($ millions): 820.0 % change in income from 1988: 50

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Rank: 81 ’88 rank: 75 Company: Integrated Device Tech.* Industry: Semiconductor Mfg. City: Santa Clara 2-year average return on equity: 17.1 1989 sales ($ millions): 204.9 1989 income ($ millions): 18.2 % change in income from 1988: 2

Rank: 82 ’88 rank: Company: Firstfed Financial Industry: Savings & Loan City: Santa Monica 2-year average return on equity: 17.1 1989 sales ($ millions): 253.1 1989 income ($ millions): 20.5 % change in income from 1988: 10

Rank: 83 ’88 rank: 83 Company: Eldon Industries Industry: Plastic Products City: Inglewood 2-year average return on equity: 17.0 1989 sales ($ millions): 112.6 1989 income ($ millions): 8.6 % change in income from 1988: 13

Rank: 84 ’88 rank: Company: Archive* Industry: Computer Storage Devices City: Costa Mesa 2-year average return on equity: 16.9 1989 sales ($ millions): 181.4 1989 income ($ millions): 15.3 % change in income from 1988: 58

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Rank: 85 ’88 rank: 97 Company: Hewlett-Packard* Industry: Computers & Ofc. Equip. City: Palo Alto 2-year average return on equity: 16.8 1989 sales ($ millions): 11,899.0 1989 income ($ millions): 829.0 % change in income from 1988: 2

Rank: 86 ’88 rank: 43 Company: Sun Microsystems* Industry: Computer Products City: Mountain View 2-year average return on equity: 16.8 1989 sales ($ millions): 1,765.4 1989 income ($ millions): 60.8 % change in income from 1988: (8)

Rank: 87 ’88 rank: Company: Everex Systems* Industry: Computer Products City: Fremont 2-year average return on equity: 16.7 1989 sales ($ millions): 377.3 1989 income ($ millions): 21.3 % change in income from 1988: 102

Rank: 88 ’88 rank: Company: Anthem Electronics Industry: Wholesale Electronics City: San Jose 2-year average return on equity: 16.6 1989 sales ($ millions): 319.0 1989 income ($ millions): 15.8 % change in income from 1988: 39

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Rank: 89 ’88 rank: Company: Bio-Rad Labs Industry: Instruments City: Hercules 2-year average return on equity: 16.5 1989 sales ($ millions): 236.3 1989 income ($ millions): 10.1 % change in income from 1988: 7

Rank: 90 ’88 rank: 63 Company: First Capital Holdings Industry: Life Insurance City: Los Angeles 2-year average return on equity: 16.4 1989 sales ($ millions): 972.9 1989 income ($ millions): 69.5 % change in income from 1988: 32

Rank: 91 ’88 rank: 81 Company: Fleetwood Enterprises* Industry: Motor Homes City: Riverside 2-year average return on equity: 16.4 1989 sales ($ millions): 1,543.3 1989 income ($ millions): 55.6 % change in income from 1988: (21)

Rank: 92 ’88 rank: Company: Qume* Industry: Computer Peripherals City: Santa Clara 2-year average return on equity: 16.4 1989 sales ($ millions): 223.8 1989 income ($ millions): 9.9 % change in income from 1988: 96

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Rank: 93 ’88 rank: Company: Linear Technology* Industry: Semiconductor Manufacturing City: Milpitas 2-year average return on equity: 16.3 1989 sales ($ millions): 64.7 1989 income ($ millions): 8.9 % change in income from 1988: 29

Rank: 94 ’88 rank: Company: Avery International* Industry: Office Products City: Pasadena 2-year average return on equity: 16.2 1989 sales ($ millions): 1,732.4 1989 income ($ millions): 86.5 % change in income from 1988: 11

Rank: 95 ’88 rank: 94 Company: Zero* Industry: Specialty Metal Products City: Los Angeles 2-year average return on equity: 16.0 1989 sales ($ millions): 194.6 1989 income ($ millions): 16.8 % change in income from 1988: 5

Rank: 96 ’88 rank: Company: Bergen Brunswig* Industry: Drugs & Medical Products City: Orange 2-year average return on equity: 15.9 1989 sales ($ millions): 3,923.2 1989 income ($ millions): 47.6 % change in income from 1988: 45

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Rank: 97 ’88 rank: 53 Company: Marshall Industries* Industry: Wholesale Electronics City: El Monte 2-year average return on equity: 15.7 1989 sales ($ millions): 525.4 1989 income ($ millions): 18.5 % change in income from 1988: (14)

Rank: 98 ’88 rank: 90 Company: Sizzler Restaurants Intl.* Industry: Restaurants City: Los Angeles 2-year average return on equity: 15.7 1989 sales ($ millions): 328.1 1989 income ($ millions): 22.9 % change in income from 1988: 8

Rank: 99 ’88 rank: Company: Applied Biosystems* Industry: Instruments City: Foster City 2-year average return on equity: 15.6 1989 sales ($ millions): 158.8 1989 income ($ millions): 19.3 % change in income from 1988: 13

Rank: 100 ’88 rank: Company: Nichols Institute Industry: Medical Laboratories City: San Juan Capistrano 2-year average return on equity: 15.6 1989 sales ($ millions): 129.7 1989 income ($ millions): 4.8 % change in income from 1988: 70

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Source: MZ Group. Certain historical data is from Standard & Poor’s Compustat Inc.

* See exceptions, page 46.

** See company notes, page 45.


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