THE TIMES 100 : The Numbers Prove State's Economy Is Healthy Again : Entertainment, tourism and high-tech--and a falling dollar--helped sustain recovery.

By CARLA LAZZARESCHI

April 25, 1995 12 AM PT

TIMES STAFF WRITER

Economists have been hailing its arrival for more than a year, but as the state’s businesses report their strong results for 1994, the hard evidence to support the proclamations mounts.

California’s economy is healthy once again--and the numbers prove it.

As a whole, The Return on Equity 100--a ranking of companies that turned in the best performances for their shareholders--rose for the third consecutive year in 1994 to its highest level since 1988, based on the median performances of firms on the list.

In addition to a general rise in performance, the results also show that the turnaround is being felt throughout much of the state’s diverse economy, leading economists to predict that the rebound will not be short-lived.

Still, technology, service and health care-related companies turned in the strongest performances for shareholders in 1994, giving the state a leading position in some of the nation’s fastest-growing industries.

“California is back, and the recovery is surprisingly broad based,” said Jack Kyser, chief economist with the Economic Development Corp. of Los Angeles County. “Even if the national economy slows, as it appears to be doing, California’s strength should last at least through 1996.”

Kyser said international trade, aided by the falling dollar, has been a major factor in the state’s growth over the last 18 months. And citing a strong foreign demand for entertainment products, tourism, engineering services and high technology products, Kyser said that because such diverse segments of the state’s industry are growing, it should create a broad prosperity for California in the future.

The Return on Equity 100 list, which was previously called The Times 100 list, ranks companies by a two-year average return on equity, a ratio produced by dividing a company’s average common shareholder equity into its annual profit. A return of 20%, for example, means that a company earned 20 cents in profit for every dollar invested by its shareholders.

Topping the list this year is Livermore-based Triad Systems Corp., a fast-growing maker of computer systems for automotive parts dealers and hardware retailers. The company’s whopping 379.2% two-year average return on equity was more than five times the performance of the company in the No. 2 spot, Herbalife International Inc.

Triad, however, has high debt and its equity base is very low, giving it a high return on equity.

Indeed, Triad’s score is more than double the 142.2% average return posted by last year’s No. 1, Herbalife, the marketer of dietary and nutritional supplements.

In all, just four of the companies among the top 10 rankings on this year’s list--Herbalife; Callaway Golf, No. 2 last year; Safeway Inc., No. 10 in 1994 and Cisco Systems Inc., No. 4 last year--were included among the top 10 last year, demonstrating just how unpredictable and fast-moving return on equity ranking can be.

Triad’s growth has been fueled in large part by the longer life span of American automobiles, the result of both higher quality cars and consumers’ determination to drive their cars for more years before trading them in for newer models.

According to the American Automobile Manufacturer’s Assn., the average age of cars in the United States has increased from seven years in 1980 to 8.6 years in 1993, the last year for which statistics are available. The result of this increase in the “years-on-the-road” index is a greater demand for automotive repair and parts, the exact data tracked by Triad’s computer hardware and software.

Triad was founded in 1972 by William Stevens in a spare bedroom of his San Francisco Bay Area home. The company made its initial public stock offering in 1979 and now employs 1,400 people worldwide. The company says revenue and profit growth have picked up recently because of its determination to focus more attention on sales of its software and database of automotive labor and parts prices and less attention on its computer hardware products, which are all affected by extreme price competition.

Triad’s dramatic performance aside, the overall performance of companies named to the comparable list in 1994 was better last year than in any of the previous three years

For example, the median two-year return on equity in 1994 rose for the third consecutive year to 23.8%, compared to 22.5% in 1993, 19.4% in 1992 and 17.7% in 1991, its lowest level ever. In addition, a total of 30 companies had a two-year return on equity of more than 30% last year, compared to 25 in 1993 and 16 in 1992.

Companies among the top 10 on this year’s ranking include more technology businesses--six--than in recent years, a shift that aligns the list, at least for this year, more closely with those from the late 1980s. Last year, just three of the top 10 companies were technology businesses.

To be named to the Return on Equity 100 list, a company must be based in California and have annual sales of more than $50 million. Its stock must have been publicly traded in 1994 on one of the major exchanges. It also must not have reported a negative common shareholders’ equity for either of the last two years.

Other companies near the top of the Return on Equity 100 and not discussed elsewhere in this section are:

Herbalife International: This Inglewood-based company continues to enjoy a steep growth rate due to worldwide sales of its popular weight-loss product, Thermojetics. The product is based on a Chinese herb, ma huang , which contains small amounts of natural ephedrine, an alkaloid that constricts blood vessels. The diet aid is being watched closed by the U.S. Food and Drug Administration. Over the last decade, Herbalife has been the subject of several state and federal investigations into its marketing techniques.

Callaway Golf: Thanks largely to the immense popularity of its Big Bertha line of metal “wood” golf clubs, this Carlsbad-based company has become a darling of golfers and investors alike. The clubs, which borrow their name from a German cannon used during World War I, have a large “sweet spot” that makes them popular among golfers looking for a competitive advantage. The company is named for Eli Callaway, a former textile executive, who came to Southern California in the early 1970s to operate a winery that still bears his name. That Temecula winery has since been sold to Hiram Walker & Sons.

Gasonics International Corp.: A San Jose-based maker of machines used to produce integrated circuits, the company has more than 75% of the worldwide market for certain kinds of equipment. The company’s machines are able to help make logic and memory devices with few contaminants, allowing fewer defects and more sensitive devices to be made for newer, faster and smaller computers.

Alliance Semiconductor: The growth in use of personal computers has helped this maker of random access memory devices. Like many other such companies, it is based in the Silicon Valley.

Fritz Cos.: Fritz is a service firm for international trading companies. Based in San Francisco, the company has benefited from higher trade and its revenue has risen with acquisitions.

Electroglas Inc.: Like Gasonics, Electroglas makes equipment used to help produce semiconductors. Based in Santa Clara, it sells to IBM and Intel Corp, among others.

Bay Networks Inc: Formed from Wellfleet Communications Inc. and SynOptics Communications, Inc., this Santa Clara company sells computer networking products.

National Health Laboratories Holdings: This La Jolla-based company owns medical laboratories throughout the United States, which provide blood, urine and tissue tests for doctors.

WD-40 Co. is a San Diego-based lubricant maker.

Cobra Golf, like Callaway Golf, is a fast-growing Carlsbad golf equipment company.

Homdeco Group Inc. provides home health care services. Based in Fountain Valley, it has branches in 45 states. It recently agreed to merge with Abbey Healthcare.

Health Systems International Inc. runs health maintenance organizations in six Western states. It recently agreed to merge with Wellpoint Health Systems.

Phoenix Technologies Ltd. is a leading supplier of system-level software, which allows computer makers to meet industry standards for meshing with printers, faxes and other peripheral devices and saves the trouble of developing certain kinds of standard features independently. It is based in Santa Clara.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

The Return on Equity 100

California companies with market value exceeding $50 million, ranked by income as a percentage of average common equity over two years.

(Please refer to the microfilm for city names.)

1994 Rank: 1 1993 Rank: Company: Triad Systems Corp. Industry: Computer hardware City: Livermore 2-Year average return on equity: 379.224 1994 Sales ($ millions): 171.8 1994 Income ($ millions): 7.9 % Change in income from 1993: 46.7

1994 Rank: 2 1993 Rank: 1 Company: Herbalife International Industry: Personal & household products City: Inglewood 2-Year average return on equity: 69.740 1994 Sales ($ millions): 466.9 1994 Income ($ millions): 46.0 % Change in income from 1993: 11.8

1994 Rank: 3 1993 Rank: 2 Company: Callaway Golf Industry: Recreational products City: Carlsbad 2-Year average return on equity: 51.176 1994 Sales ($ millions): 448.7 1994 Income ($ millions): 78.0 % Change in income from 1993: 89.4

1994 Rank: 4 1993 Rank: Company: GaSonics Int’l Corp. Industry: Scientific & technical instruments City: San Jose 2-Year average return on equity: 49.307 1994 Sales ($ millions): 70.1 1994 Income ($ millions): 10.0 % Change in income from 1993: 3.4

1994 Rank: 5 1993 Rank: 8 Company: Alliance Semiconductor Industry: Computer storage devices City: San Jose 2-Year average return on equity: 47.506 1994 Sales ($ millions): 94.7 1994 Income ($ millions): 16.9 % Change in income from 1993: 137.0

1994 Rank: 6 1993 Rank: 10 Company: Safeway Inc. Industry: Grocery City: Oakland 2-Year average return on equity: 46.210 1994 Sales ($ millions): 15,626.6 1994 Income ($ millions): 250.2 % Change in income from 1993: 102.9

1994 Rank: 7 1993 Rank: 22 Company: Oracle Systems Corp. Industry: Software & programming City: Redwood Shores 2-Year average return on equity: 45.137 1994 Sales ($ millions): 2,617.1 1994 Income ($ millions): 374.3 % Change in income from 1993: 53.5

1994 Rank: 8 1993 Rank: Company: Fritz Cos. Industry: Miscellaneous transportation City: San Francisco 2-Year average return on equity: 44.950 1994 Sales ($ millions): 475.5 1994 Income ($ millions): 19.6 % Change in income from 1993: 39.6

1994 Rank: 9 1993 Rank: 4 Company: Cisco Systems Inc. Industry: Computer peripherals City: Santa Clara 2-Year average return on equity: 44.247 1994 Sales ($ millions): 1,540.2 1994 Income ($ millions): 326.2 % Change in income from 1993: 8.0

1994 Rank: 10 1993 Rank: Company: Electroglas Inc. Industry: Semiconductors City: Santa Clara 2-Year average return on equity: 43.123 1994 Sales ($ millions): 112.3 1994 Income ($ millions): 22.3 % Change in income from 1993: 52.3

1994 Rank: 11 1993 Rank: Company: Bay Networks Inc. Industry: Scientific & technical instruments City: Santa Clara 2-Year average return on equity: 41.067 1994 Sales ($ millions): 837.9 1994 Income ($ millions): 70.4 % Change in income from 1993: -35.8

1994 Rank: 12 1993 Rank: 15 Company: Nat’l Health Labs. Hold. Industry: Healthcare facilities City: La Jolla 2-Year average return on equity: 40.969 1994 Sales ($ millions): 872.5 1994 Income ($ millions): 30.1 % Change in income from 1993: -73.3

1994 Rank: 13 1993 Rank: 8 Company: WD-40 Co. Industry: Oil & gas operations City: San Diego 2-Year average return on equity: 37.413 1994 Sales ($ millions): 114.9 1994 Income ($ millions): 21.3 % Change in income from 1993: 344.2

1994 Rank: 14 1993 Rank: 11 Company: Charles Schwab Corp. Industry: Investment services City: San Francisco 2-Year average return on equity: 35.607 1994 Sales ($ millions): 1,064.6 1994 Income ($ millions): 135.3 % Change in income from 1993: 8.8

1994 Rank: 15 1993 Rank: Company: Cobra Golf Inc. Industry: Recreational products City: Carlsbad 2-Year average return on equity: 33.280 1994 Sales ($ millions): 124.1 1994 Income ($ millions): 23.0 % Change in income from 1993: 198.3

1994 Rank: 16 1993 Rank: 17 Company: Homedco Group Inc. Industry: Healthcare facilities City: Fountain Valley 2-Year average return on equity: 32.915 1994 Sales ($ millions): 546.3 1994 Income ($ millions): 31.3 % Change in income from 1993: 21.1

1994 Rank: 17 1993 Rank: Company: Health Systems Int’l. Inc Industry: Insurance (accident & health) City: Woodlan Hills 2-Year average return on equity: 32.700 1994 Sales ($ millions): 2,306.2 1994 Income ($ millions): 88.1 % Change in income from 1993: 270.1

1994 Rank: 18 1993 Rank: Company: Phoenix Technologies LTD Industry: Software & programming City: Santa Clara 2-Year average return on equity: 31.850 1994 Sales ($ millions): 77.2 1994 Income ($ millions): 19.3 % Change in income from 1993: 1.4

1994 Rank: 19 1993 Rank: 5 Company: Informix Corp. Industry: Software & programming City: Menlo Park 2-Year average return on equity: 31.591 1994 Sales ($ millions): 468.7 1994 Income ($ millions): 66.2 % Change in income from 1993: 18.0

1994 Rank: 20 1993 Rank: 14 Company: Electronic Arts Industry: Software & programming City: San Mateo 2-Year average return on equity: 31.547 1994 Sales ($ millions): 484.3 1994 Income ($ millions): 53.6 % Change in income from 1993: 26.6

1994 Rank: 21 1993 Rank: 27 Company: Intel Corp. Industry: Semiconductors City: Santa Clara 2-Year average return on equity: 31.051 1994 Sales ($ millions): 11,521.0 1994 Income ($ millions): 2,288.0 % Change in income from 1993: -0.3

1994 Rank: 22 1993 Rank: 7 Company: Amgen Inc. Industry: Biotechnology & drugs City: Burlingame 2-Year average return on equity: 30.820 1994 Sales ($ millions): 1,647.9 1994 Income ($ millions): 319.7 % Change in income from 1993: -14.7

1994 Rank: 23 1993 Rank: Company: Gymboree Corp. Industry: Retail (apparel) City: Thousand Oaks 2-Year average return on equity: 30.131 1994 Sales ($ millions): 188.4 1994 Income ($ millions): 22.2 % Change in income from 1993: 57.3

1994 Rank: 24 1993 Rank: 30 Company: Sybase Inc. Industry: Software & programming City: Emeryville 2-Year average return on equity: 30.055 1994 Sales ($ millions): 693.8 1994 Income ($ millions): 75.2 % Change in income from 1993: 70.4

1994 Rank: 25 1993 Rank: 16 Company: ADAC Laboratories Industry: Medical equipment & supplies City: Milpitas 2-Year average return on equity: 29.771 1994 Sales ($ millions): 174.0 1994 Income ($ millions): 14.6 % Change in income from 1993: -54.3

1994 Rank: 26 1993 Rank: 24 Company: Franklin Resources Industry: Investment services City: San Mateo 2-Year average return on equity: 29.509 1994 Sales ($ millions): 867.7 1994 Income ($ millions): 255.6 % Change in income from 1993: 7.3

1994 Rank: 27 1993 Rank: 36 Company: Linear Technology Industry: Semiconductors City: Milpitas 2-Year average return on equity: 29.440 1994 Sales ($ millions): 227.7 1994 Income ($ millions): 69.0 % Change in income from 1993: 48.8

1994 Rank: 28 1993 Rank: Company: Cerplex Group Inc. Industry: Computer services City: Anaheim 2-Year average return on equity: 29.301 1994 Sales ($ millions): 126.9 1994 Income ($ millions): 2.7 % Change in income from 1993: -55.8

1994 Rank: 29 1993 Rank: 60 Company: StrataCom Inc. Industry: Communications equipment City: San Jose 2-Year average return on equity: 29.116 1994 Sales ($ millions): 154.2 1994 Income ($ millions): 19.8 % Change in income from 1993: 162.6

1994 Rank: 30 1993 Rank: 33 Company: Superior Industries Int’l Industry: Auto & truck parts City: Van Nuys 2-Year average return on equity: 29.058 1994 Sales ($ millions): 456.6 1994 Income ($ millions): 56.3 % Change in income from 1993: 24.7

1994 Rank: 31 1993 Rank: Company: Pinnacle Micro Inc. Industry: Computer storage devices City: Irvine 2-Year average return on equity: 27.440 1994 Sales ($ millions): 57.7 1994 Income ($ millions): 3.1 % Change in income from 1993: 30.4

1994 Rank: 32 1993 Rank: 42 Company: Xilinx Inc. Industry: Semiconductors City: San Jose 2-Year average return on equity: 27.410 1994 Sales ($ millions): 321.4 1994 Income ($ millions): 51.5 % Change in income from 1993: 35.2

1994 Rank: 33 1993 Rank: 72 Company: Pyxis Corp. Industry: Office equipment City: San Diego 2-Year average return on equity: 26.778 1994 Sales ($ millions): 142.1 1994 Income ($ millions): 34.6 % Change in income from 1993: 35.5

1994 Rank: 34 1993 Rank: 34 Company: Gap Inc. Industry: Retail (apparel) City: San Francisco 2-Year average return on equity: 26.286 1994 Sales ($ millions): 3,722.5 1994 Income ($ millions): 320.2 % Change in income from 1993: 23.9

1994 Rank: 35 1993 Rank: 37 Company: Broderbund Software Inc. Industry: Software & programming City: Novato 2-Year average return on equity: 26.049 1994 Sales ($ millions): 151.9 1994 Income ($ millions): 22.3 % Change in income from 1993: 105.2

1994 Rank: 36 1993 Rank: Company: Credence Systems Corp. Industry: Semiconductors City: Fremont 2-Year average return on equity: 25.315 1994 Sales ($ millions): 113.6 1994 Income ($ millions): 18.7 % Change in income from 1993: 61.0

1994 Rank: 37 1993 Rank: 13 Company: Fidelity Nat’l Financial Industry: Insurance (property & casualty) City: Irvine 2-Year average return on equity: 25.294 1994 Sales ($ millions): 493.7 1994 Income ($ millions): 10.3 % Change in income from 1993: -71.6

1994 Rank: 38 1993 Rank: 94 Company: Applied Materials Industry: Semiconductors City: Santa Clara 2-Year average return on equity: 25.036 1994 Sales ($ millions): 1,825.5 1994 Income ($ millions): 242.1 % Change in income from 1993: 76.0

1994 Rank: 39 1993 Rank: 39 Company: Adaptec Inc. Industry: Semiconductors City: Milpitas 2-Year average return on equity: 24.781 1994 Sales ($ millions): 437.8 1994 Income ($ millions): 80.7 % Change in income from 1993: 52.2

1994 Rank: 40 1993 Rank: Company: LSI Logic Corp. Industry: Semiconductors City: Milpitas 2-Year average return on equity: 24.263 1994 Sales ($ millions): 901.8 1994 Income ($ millions): 108.7 % Change in income from 1993: 102.3

1994 Rank: 41 1993 Rank: 52 Company: SunAmerica Inc. Industry: Investment services City: Los Angeles 2-Year average return on equity: 23.994 1994 Sales ($ millions): 769.8 1994 Income ($ millions): 154.4 % Change in income from 1993: 15.6

1994 Rank: 42 1993 Rank: Company: S3 Inc. Industry: Electronic instruments & controls City: Santa Clara 2-Year average return on equity: 23.826 1994 Sales ($ millions): 140.3 1994 Income ($ millions): 5.5 % Change in income from 1993: -63.6

1994 Rank: 43 1993 Rank: 87 Company: Cohu Inc. Industry: Scientific & technical instruments City: San Diego 2-Year average return on equity: 23.766 1994 Sales ($ millions): 102.7 1994 Income ($ millions): 10.1 % Change in income from 1993: 48.6

1994 Rank: 44 1993 Rank: 90 Company: Viking Office Products Industry: Retail (catalog & mail order) City: Los Angeles 2-Year average return on equity: 23.743 1994 Sales ($ millions): 673.7 1994 Income ($ millions): 38.4 % Change in income from 1993: 50.9

1994 Rank: 45 1993 Rank: Company: Fair, Isaac & Co. Industry: Business services City: San Rafael 2-Year average return on equity: 23.550 1994 Sales ($ millions): 94.8 1994 Income ($ millions): 10.6 % Change in income from 1993: 23.0

1994 Rank: 46 1993 Rank: 20 Company: Boole & Babbage Inc. Industry: Software & programming City: San Jose 2-Year average return on equity: 23.530 1994 Sales ($ millions): 139.3 1994 Income ($ millions): 8.9 % Change in income from 1993: 43.4

1994 Rank: 47 1993 Rank: Company: Deckers Outdoor Corp. Industry: Footwear City: Carpenteria 2-Year average return on equity: 23.401 1994 Sales ($ millions): 85.8 1994 Income ($ millions): 10.5 % Change in income from 1993: 66.6

1994 Rank: 48 1993 Rank: 93 Company: Lam Research Corp. Industry: Electronic instruments & controls City: Fremont 2-Year average return on equity: 23.021 1994 Sales ($ millions): 611.3 1994 Income ($ millions): 55.2 % Change in income from 1993: 105.2

1994 Rank: 49 1993 Rank: Company: Integrated Device Tech. Industry: Semiconductors City: Santa Clara 2-Year average return on equity: 22.987 1994 Sales ($ millions): 388.5 1994 Income ($ millions): 69.9 % Change in income from 1993: 123.8

1994 Rank: 50 1993 Rank: Company: Aspect Telecommunications Industry: Communications equipment City: San Jose 2-Year average return on equity: 22.805 1994 Sales ($ millions): 147.2 1994 Income ($ millions): 17.6 % Change in income from 1993: 53.1

1994 Rank: 51 1993 Rank: 29 Company: PacifiCare Health Systems* Industry: Insurance (accident & health) City: Cypress 2-Year average return on equity: 22.579 1994 Sales ($ millions): 3,069.1 1994 Income ($ millions): 89.9 % Change in income from 1993: 36.1

1994 Rank: 52 1993 Rank: Company: OPTi Inc. Industry: Semiconductors City: Santa Clara 2-Year average return on equity: 22.383 1994 Sales ($ millions): 134.1 1994 Income ($ millions): 14.6 % Change in income from 1993: 58.8

1994 Rank: 53 1993 Rank: Company: National Semiconductor Industry: Semiconductors City: Santa Clara 2-Year average return on equity: 22.187 1994 Sales ($ millions): 2,319.0 1994 Income ($ millions): 254.2 % Change in income from 1993: 8.6

1994 Rank: 54 1993 Rank: 55 Company: Maxim Integrated Products Industry: Semiconductors City: Sunnyvale 2-Year average return on equity: 22.171 1994 Sales ($ millions): 192.9 1994 Income ($ millions): 30.3 % Change in income from 1993: 56.8

1994 Rank: 55 1993 Rank: Company: North American Mortgage Industry: Consumer financial services City: Santa Rosa 2-Year average return on equity: 21.836 1994 Sales ($ millions): 264.0 1994 Income ($ millions): 8.2 % Change in income from 1993: -82.8

1994 Rank: 56 1993 Rank: Company: Novellus Systems Inc. Industry: Semiconductors City: San Jose 2-Year average return on equity: 21.715 1994 Sales ($ millions): 224.7 1994 Income ($ millions): 44.9 % Change in income from 1993: 178.8

1994 Rank: 57 1993 Rank: Company: Imperial Credit Ind. Industry: Consumer financial services City: Santa Ana Heights 2-Year average return on equity: 21.526 1994 Sales ($ millions): 74.8 1994 Income ($ millions): 7.8 % Change in income from 1993: -57.9

1994 Rank: 58 1993 Rank: Company: Tencor Instruments Industry: Semiconductors City: Mountain View 2-Year average return on equity: 21.337 1994 Sales ($ millions): 182.3 1994 Income ($ millions): 24.3 % Change in income from 1993: 260.5

1994 Rank: 59 1993 Rank: 31 Company: Mattel Inc. Industry: Recreational products City: El Segundo 2-Year average return on equity: 21.004 1994 Sales ($ millions): 3,205.0 1994 Income ($ millions): 251.1 % Change in income from 1993: 90.8

1994 Rank: 60 1993 Rank: Company: Watson Pharmaceuticals Industry: Biotechnology & drugs City: Corona 2-Year average return on equity: 20.975 1994 Sales ($ millions): 87.1 1994 Income ($ millions): 18.7 % Change in income from 1993: 52.9

1994 Rank: 61 1993 Rank: 21 Company: Supercuts Inc. Industry: Personal Services City: San Francisco 2-Year average return on equity: 20.958 1994 Sales ($ millions): 82.1 1994 Income ($ millions): 7.3 % Change in income from 1993: 12.7

1994 Rank: 62 1993 Rank: 98 Company: Clorox Co. Industry: Personal & household products City: Oakland 2-Year average return on equity: 20.748 1994 Sales ($ millions): 1,907.2 1994 Income ($ millions): 190.4 % Change in income from 1993: 13.5

1994 Rank: 63 1993 Rank: 49 Company: Bridgford Foods Corp. Industry: Food Processing City: Anaheim 2-Year average return on equity: 20.598 1994 Sales ($ millions): 109.0 1994 Income ($ millions): 6.3 % Change in income from 1993: 9.3

1994 Rank: 64 1993 Rank: 66 Company: Allergan Inc. Industry: Biotechnology & drugs City: Irvine 2-Year average return on equity: 20.290 1994 Sales ($ millions): 947.2 1994 Income ($ millions): 110.7 % Change in income from 1993: 5.9

1994 Rank: 65 1993 Rank: 19 Company: XIRCOM Inc. Industry: Computer networks City: Calabasas 2-Year average return on equity: 20.201 1994 Sales ($ millions): 155.0 1994 Income ($ millions): 15.6 % Change in income from 1993: -4.6

1994 Rank: 66 1993 Rank: 96 Company: United Television Inc. Industry: Broadcasting & cable television City: Beverly Hills 2-Year average return on equity: 20.197 1994 Sales ($ millions): 151.0 1994 Income ($ millions): 35.2 % Change in income from 1993: -19.7

1994 Rank: 67 1993 Rank: 74 Company: Autodesk Inc. Industry: Software & programming City: Sausalito 2-Year average return on equity: 20.196 1994 Sales ($ millions): 463.2 1994 Income ($ millions): 56.6 % Change in income from 1993: -8.9

1994 Rank: 68 1993 Rank: Company: Armor All Products Corp. Industry: Personal & household products City: Aliso Viejo 2-Year average return on equity: 20.194 1994 Sales ($ millions): 201.8 1994 Income ($ millions): 24.3 % Change in income from 1993: 13.0

1994 Rank: 69 1993 Rank: 84 Company: Rockwell Int’l Corp. Industry: Conglomerates City: Seal Beach 2-Year average return on equity: 20.149 1994 Sales ($ millions): 11,145.3 1994 Income ($ millions): 648.9 % Change in income from 1993: 10.1

1994 Rank: 70 1993 Rank: 62 Company: K-Swiss Inc. Industry: Footwear City: Chatsworth 2-Year average return on equity: 20.141 1994 Sales ($ millions): 154.9 1994 Income ($ millions): 14.9 % Change in income from 1993: 18.8

1994 Rank: 71 1993 Rank: Company: Electronics for Imaging Industry: Software & programming City: San Mateo 2-Year average return on equity: 19.910 1994 Sales ($ millions): 130.4 1994 Income ($ millions): 21.3 % Change in income from 1993: 67.1

1994 Rank: 72 1993 Rank: 70 Company: Logicon Inc. Industry: Computer hardware City: Torrance 2-Year average return on equity: 19.646 1994 Sales ($ millions): 316.9 1994 Income ($ millions): 17.9 % Change in income from 1993: -15.8

1994 Rank: 73 1993 Rank: 78 Company: Solectron Corp. Industry: Electronic instruments & controls City: Milpitas 2-Year average return on equity: 19.534 1994 Sales ($ millions): 1,785.7 1994 Income ($ millions): 67.5 % Change in income from 1993: 49.3

1994 Rank: 74 1993 Rank: 65 Company: Synopsys Inc. Industry: Software & programming City: Mountain View 2-Year average return on equity: 19.520 1994 Sales ($ millions): 209.8 1994 Income ($ millions): 18.0 % Change in income from 1993: 43.1

1994 Rank: 75 1993 Rank: Company: Atmel Corp. Industry: Electronic instruments & controls City: San Jose 2-Year average return on equity: 19.518 1994 Sales ($ millions): 375.1 1994 Income ($ millions): 59.5 % Change in income from 1993: 98.1

1994 Rank: 76 1993 Rank: Company: Teledyne Inc. Industry: Conglomerates City: Los Angeles 2-Year average return on equity: 19.386 1994 Sales ($ millions): 2,442.1 1994 Income ($ millions): 111.0 % Change in income from 1993: -100000.0

1994 Rank: 77 1993 Rank: Company: Wells Fargo & Co. Industry: Regional Banks City: San Francisco 2-Year average return on equity: 19.374 1994 Sales ($ millions): 3,765.0 1994 Income ($ millions): 798.0 % Change in income from 1993: 42.0

1994 Rank: 78 1993 Rank: Company: First Interstate Bancorp Industry: Regional Banks City: Los Angeles 2-Year average return on equity: 19.351 1994 Sales ($ millions): 3,192.0 1994 Income ($ millions): 700.2 % Change in income from 1993: 36.0

1994 Rank: 79 1993 Rank: Company: Silicon Graphics Inc. Industry: Computer peripherals City: Mountain View 2-Year average return on equity: 19.183 1994 Sales ($ millions): 1,761.0 1994 Income ($ millions): 174.3 % Change in income from 1993: 54.2

1994 Rank: 80 1993 Rank: 44 Company: Advanced Micro Devices Industry: Semiconductors City: Sunnyvale 2-Year average return on equity: 19.052 1994 Sales ($ millions): 2,241.7 1994 Income ($ millions): 309.7 % Change in income from 1993: 18.1

1994 Rank: 81 1993 Rank: 81 Company: Zilog Inc. Industry: Semiconductors City: Campbell 2-Year average return on equity: 18.927 1994 Sales ($ millions): 223.3 1994 Income ($ millions): 34.9 % Change in income from 1993: 30.4

1994 Rank: 82 1993 Rank: Company: Altera Corp. Industry: Semiconductors City: San Jose 2-Year average return on equity: 18.851 1994 Sales ($ millions): 230.3 1994 Income ($ millions): 22.0 % Change in income from 1993: 97.2

1994 Rank: 83 1993 Rank: 76 Company: Custom Chrome Inc. Industry: Auto & truck parts City: Morgan Hill 2-Year average return on equity: 18.833 1994 Sales ($ millions): 74.9 1994 Income ($ millions): 6.4 % Change in income from 1993: 16.5

1994 Rank: 84 1993 Rank: Company: Physicians Clinical Lab. Industry: Healthcare facilities City: Sacramento 2-Year average return on equity: 18.798 1994 Sales ($ millions): 104.1 1994 Income ($ millions): 3.7 % Change in income from 1993: 32.0

1994 Rank: 85 1993 Rank: 54 Company: Day Runner Inc. Industry: Office supplies City: Fullerton 2-Year average return on equity: 18.682 1994 Sales ($ millions): 111.4 1994 Income ($ millions): 6.8 % Change in income from 1993: 19.4

1994 Rank: 86 1993 Rank: 92 Company: Tetra Tech Inc. Industry: Waste management services City: Pasadena 2-Year average return on equity: 18.651 1994 Sales ($ millions): 103.6 1994 Income ($ millions): 6.1 % Change in income from 1993: 33.8

1994 Rank: 87 1993 Rank: 43 Company: Jefferies Group Inc. Industry: Investment services City: Los Angeles 2-Year average return on equity: 18.522 1994 Sales ($ millions): 316.1 1994 Income ($ millions): 20.1 % Change in income from 1993: -27.1

1994 Rank: 88 1993 Rank: Company: Aldila Industry: Recreational products City: San Diego 2-Year average return on equity: 18.429 1994 Sales ($ millions): 79.8 1994 Income ($ millions): 11.7 % Change in income from 1993: 63.1

1994 Rank: 89 1993 Rank: 100 Company: IHOP Corp. Industry: Restaurants City: Glendale 2-Year average return on equity: 18.399 1994 Sales ($ millions): 150.0 1994 Income ($ millions): 15.1 % Change in income from 1993: 40.8

1994 Rank: 90 1993 Rank: Company: Corvel Corp. Industry: Healthcare facilities City: Irvine 2-Year average return on equity: 18.316 1994 Sales ($ millions): 91.3 1994 Income ($ millions): 5.5 % Change in income from 1993: 36.0

1994 Rank: 91 1993 Rank: 97 Company: Walt Disney Co. Industry: Recreational activities City: Burbank 2-Year average return on equity: 18.289 1994 Sales ($ millions): 10,629.5 1994 Income ($ millions): 1,224.2 % Change in income from 1993: 30.9

1994 Rank: 92 1993 Rank: Company: Lockheed Corp. Industry: Aerospace & defense City: Burbank 2-Year average return on equity: 18.030 1994 Sales ($ millions): 13,130.0 1994 Income ($ millions): 445.0 % Change in income from 1993: 5.5

1994 Rank: 93 1993 Rank: 45 Company: Leslie’s Poolmart Industry: Retail (Specialty) City: Chatsworth 2-Year average return on equity: 17.879 1994 Sales ($ millions): 141.6 1994 Income ($ millions): 4.6 % Change in income from 1993: 51.0

1994 Rank: 94 1993 Rank: Company: Ultratech Stepper Inc. Industry: Photography City: Santa Clara 2-Year average return on equity: 17.715 1994 Sales ($ millions): 91.3 1994 Income ($ millions): 11.0 % Change in income from 1993: 167.3

1994 Rank: 95 1993 Rank: Company: Seagate Technology Inc. Industry: Computer storage devices City: Scotts Valley 2-Year average return on equity: 17.625 1994 Sales ($ millions): 4,248.4 1994 Income ($ millions): 251.3 % Change in income from 1993: 18.0

1994 Rank: 96 1993 Rank: Company: WellPoint Health Networks Industry: Insurance (accident & health) City: Woodlad Hills 2-Year average return on equity: 17.593 1994 Sales ($ millions): 2,791.7 1994 Income ($ millions): 213.2 % Change in income from 1993: 14.2

1994 Rank: 97 1993 Rank: Company: Symmetricom Inc. Industry: Semiconductors City: San Jose 2-Year average return on equity: 17.509 1994 Sales ($ millions): 101.0 1994 Income ($ millions): 8.9 % Change in income from 1993: 48.0

1994 Rank: 98 1993 Rank: Company: Health Care Property Industry: Real Estate Operations City: Los Angeles 2-Year average return on equity: 17.412 1994 Sales ($ millions): 99.0 1994 Income ($ millions): 50.0 % Change in income from 1993: 13.4

1994 Rank: 99 1993 Rank: Company: Hewlett-Packard Co. Industry: Computer hardware City: Palo Alto 2-Year average return on equity: 17.367 1994 Sales ($ millions): 26,613.0 1994 Income ($ millions): 1,833.0 % Change in income from 1993: 63.6

1994 Rank: 100 1993 Rank: Company: Fluor Corp. Industry: Construction services City: Irvine 2-Year average return on equity: 17.280 1994 Sales ($ millions): 8,487.2 1994 Income ($ millions): 198.7 % Change in income from 1993: 14.4

* Only one class of stock considered; results may be distorted.