THE TIMES 100 : Technology Firms Rule the Roost as Stock Values : Leaders Intel and Hewlett-Packard both trade in excess of three or four times book worth.

If there was any doubt before, this year’s list of the 100 most valuable companies in California confirms that technology is now king.

For the first time since the Times 100 has rated market capitalization, the two highest-valued companies in the state--Intel Corp., valued at $39.2 billion, and Hewlett-Packard Co., valued at $31.5 billion--are in computers and chips, trading at more than three or four times their book values.

Technology stocks in general were favored by the market in 1994.

“The chip industry has had three years of exceptional growth,” said Kris Chellam, chief financial officer for Atmel Corp., a San Jose-based supplier of memory chips used in portable electronic equipment such as notebook computers and cellular phones. Also, he said, “the PC is becoming a consumer item.”

Atmel had one of the most spectacular changes in market value in 1994. Its market capitalization more than doubled from $870 million in 1993 to $1.9 billion, bringing it up to 57th on the list. Atmel brought a new factory on line last year, increasing capacity. Coupled with increasing demand from its European and Japanese customers, this translated into record fourth-quarter revenue and sharp increases for the year in both revenue and earnings.

“We grew our business by 69% last year, more than twice the rate the industry grew,” Chellam said.

Adaptec, a supplier of high-performance microcomputer input and output products, performed nearly as well, with its market capitalization growing from $943 million in 1993 to $1.8 billion at the end of 1994.

Several other high-tech companies saw the market lift them onto the list for the first time. For example, despite some bugs in its tax software, the market was bullish enough on Menlo Park-based Intuit Inc. to push it to No. 74 with a market value of about $1.5 billion. Intuit sells personal finance and tax-related software programs. However, this may mark the company’s only appearance on the list if a shareholder-approved merger with Microsoft Corp. goes through as planned.

Two other first-timers are Bay Networks Inc. and Amdahl Corp. Bay Networks provides networking products and services for computers. Created by a merger, its market value of $4.2 billion places it 25th on the list. Amdahl, based in Sunnyvale, makes large-scale, IBM-compatible computers. It jumped to 75th place with a value of $1.5 billion.

Marking a strong showing for its second year on the list is LSI Logic Corp., a Milpitas-based company that makes specialized integrated circuits and microprocessors.

Overloaded with too much factory space in 1992, LSI closed one plant and eliminated more than 1,000 jobs to save operating expenses. The restructuring, combined with new products, paid off and its market value more than tripled to $3.5 billion.

One high-tech stock that did not fare as well is Sybase Inc. The Emeryville provider of software for large corporate computer networks has admitted some technical shortcomings in its current product line. Its market value dropped from $2.1 billion in 1993, when it ranked 44th, to $1.2 billion in 1994, dropping to No. 88 on the list.

Meanwhile, two of its competitors--Oracle Corp. and Informix Corp.--moved ahead. Oracle moved up from No. 10 to No. 7 with a market value of $13.8 billion, while Informix jumped from No. 72 to No. 46 with a capitalization of $2.4 billion.

Amgen--a biotechnical stock--was another star performer. Excitement about the Thousand Oaks-based biopharmaceutical firm’s projected double-digit revenue growth in its primary product lines and a just-signed licensing agreement for the so-called “fat gene” that many expect could bring a cure for morbid obesity, combined to revive the stock. Its market value reached $9 billion, placing it 12th on the list, up from 18th a year ago.

However, fellow biotechnical stock Genentech did not fare as well. The company, which uses recombinant DNA technology to make Activase, a drug that dissolves blood clots, and Protropin, a human growth hormone, as well as treatments for chronic granulomatous disease and cystic fibrosis, dropped from 19th at a value of $5 billion to 42nd at a value of $2.6 billion.

However, not all the news was in the high-tech sector. For example, Atlantic Richfield Co. pushed San Francisco-based Pacific Telesis out of the top five this year.

Pacific Telesis Group, now made up of Pacific Bell, Pacific Bell Directory, and Nevada Bell, completed the spinoff of AirTouch Communications in 1994. Both companies remain among the top 10 in market capitalization.

Moving up the ladder was Pasadena-based Avery-Dennison Corp., which makes self-adhesive tapes, labels and other office products, such as Hi-Liter markers, has spent the last four years restructuring and refocusing on its high-return businesses, said spokeswoman Diane Dixon. “We’re seeing the cumulative benefit of that.”

The company has been investing in equipment to reduce costs while adding capacity, resulting in record sales and earnings per share for 1994, she said. The market responded by boosting the company from $1.6 billion, to $2.1 billion.

There was one conspicuous absence from the list this year. Syntex Corp. of Palo Alto, which ranked 33rd last year (market value of $3 billion) was bought by Roche Holding Ltd. based in Geneva. Although no longer a California-headquartered company, Roche has continued its operations here.

And a new name on the list not connected with chip manufacturing is Western Atlas Inc., a Beverly Hills spinoff of Litton Industries Inc.

Western, an oil field services and industrial automation firm, debuted at No. 43 with a market capitalization of $2.5 billion.

“We are one of the few large capitalized oil field service companies and, on top of that, we’ve concentrated on the information technology area for high-level production systems and industrial automation,” said Dirk Koerber, vice president for investor relations.

“Demand for oil field information technology continues to grow because it improves (a driller’s) cost situation,” he said. “It can help them find more oil at a lower cost.”

Last year’s ranking for Litton (No. 61) took into account the effect of spinning off the unit, which dropped it from No. 36 in 1992.

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The Market Value 100

Companies ranked by market value as of April 13, 1995.

4/13/95 ’93 Market Value Book Value Rank Rank Company ($ Millions) ($ Millions) 1 1 Intel Corp. 39,235.0 9,267.0 2 5 Hewlett-Packard Co. 31,503.0 10,353.0 3 2 Chevron Corp. 29,255.7 14,596.0 4 3 Walt Disney Co. 28,383.4 5,614.3 5 6 Atlantic Richfield Co. 18,446.1 6,277.0 6 7 BankAmerica Corp. 18,327.0 15,823.0 7 10 Oracle Systems Corp. 13,799.8 943.0 8 9 AirTouch Communications 12,848.6 3,459.6 9 4 Pacific Telesis Group 12,775.1 5,233.0 10 8 Pacific Gas & Electric 11,239.1 8,735.4 11 12 Cisco Systems Inc. 10,746.4 1,036.3 12 18 Amgen Inc. 9,075.6 1,274.3 13 13 Wells Fargo & Co. 8,160.3 3,422.0 14 14 SCEcorp 7,332.7 6,144.0 15 20 Occidental Petroleum Corp 7,287.6 3,132.0 16 11 Rockwell Int’l Corp. 7,250.5 3,377.9 17 16 Unocal Corp. 6,845.3 2,658.0 18 17 First Interstate Bancorp 6,043.9 3,086.0 19 21 Mattel Inc. 5,250.6 1,085.7 20 23 Lockheed Corp. 5,157.3 2,807.0 21 29 Silicon Graphics Inc. 5,111.7 1,013.9 22 27 Applied Materials 4,904.8 1,031.8 23 15 Gap Inc. 4,751.1 1,316.7 24 26 Apple Computer Inc. 4,619.1 2,562.0 25 Bay Networks Inc. 4,194.6 604.8 26 25 Transamerica Corp. 4,036.6 2,569.9 27 22 Fluor Corp. 4,012.7 1,258.8 28 52 3Com Corp. 3,760.4 327.8 29 35 Hilton Hotels Corp. 3,695.2 1,099.8 30 42 Safeway Inc. 3,547.4 643.8 31 82 LSI Logic Corp. 3,528.6 544.9 32 39 Sun Microsystems Inc. 3,399.7 1,775.5 33 34 Advanced Micro Devices 3,346.0 1,735.2 34 76 Adobe Systems Inc. 3,289.6 456.8 35 28 Franklin Resources 3,227.4 988.7 36 36 Clorox Co. 3,136.9 888.0 37 30 Southern Pacific Rail 2,941.2 907.9 38 37 National Medical Enter. 2,807.7 1,435.0 39 58 Charles Schwab Corp. 2,806.5 467.0 40 45 Great Western Fin. Corp. 2,736.8 2,189.4 41 50 Computer Sciences Corp. 2,701.4 898.2 42 19 Genentech Inc. 2,599.2 1,348.8 43 Western Atlas Inc. 2,546.6 1,236.2 44 48 Northrop Grumman Corp. 2,490.2 1,290.0 45 38 San Diego Gas & Electric 2,461.7 1,474.4 46 63 Informix Corp. 2,455.3 275.6 47 40 Golden West Financial 2,453.0 2,000.3 48 24 Times Mirror Co.* 2,427.6 1,919.0 49 43 National Semiconductor 2,389.6 1,290.3 50 32 Homestake Mining Co. 2,378.0 588.8 51 47 H.F. Ahmanson & Co. 2,342.0 2,964.6 52 46 Chiron Corp. 2,291.4 572.6 53 57 Avery Dennison Corp. 2,108.5 729.0 54 54 Seagate Technology Inc. 2,078.0 1,376.2 55 59 Linear Technology 2,062.3 256.2 56 65 PacifiCare Health Systems* 1,145.2 429.7 57 65 Pacific Enterprises 2,011.7 1,210.0 58 53 Atmel Corp. 1,940.0 358.1 59 93 Autodesk Inc. 1,917.7 325.7 60 62 Allergan Inc. 1,838.2 603.3 61 56 Raychem Corp. 1,790.3 706.1 62 85 Adaptec Inc. 1,785.2 330.9 63 51 ALZA Corp. 1,763.9 364.5 64 49 Dole Food Inc. 1,739.7 1,093.3 65 60 Countrywide Credit Ind. 1,700.8 928.5 66 78 Foundation Health Corp. 1,694.5 660.9 67 61 Litton Industries Inc. 1,645.1 671.1 68 75 Xilinx Inc. 1,641.0 221.6 69 41 McKesson Corp. 1,624.6 592.8 70 94 Integrated Device Tech. 1,568.2 379.2 71 55 Tandem Computers Inc. 1,548.6 1,002.4 72 Altera Corp. 1,528.3 158.0 73 71 Varian Associates Inc. 1,517.1 454.0 74 96 KLA Instruments Corp. 1,512.5 245.4 75 Intuit Inc. 1,505.5 187.3 76 Amdahl Corp. 1,483.5 876.3 77 84 Teledyne Inc. 1,428.6 273.0 78 73 SunAmerica Inc. 1,407.7 587.7 79 67 QUALCOMM Inc. 1,394.1 269.1 80 83 Union Bank, San Francisco 1,325.5 1,098.5 81 Lam Research Corp. 1,296.5 327.8 82 74 Nat’l Health Labs. Hold. 1,271.4 166.0 83 70 Potlatch Corp. 1,263.9 920.2 84 StrataCom Inc. 1,224.9 57.5 85 69 Solectron Corp. 1,208.9 373.3 86 89 Viking Office Products 1,185.3 174.6 87 Cypress Semiconductor 1,174.4 327.1 88 92 Cirrus Logic Inc. 1,173.8 393.2 89 44 Sybase Inc. 1,173.7 301.9 90 Alliance Semiconductor 1,124.0 96.8 91 Novellus Systems Inc. 1,099.5 214.2 92 Maxim Integrated Products 1,093.8 147.8 93 97 FHP International Corp. 1,089.5 1,146.4 94 Broderbund Software Inc. 1,083.8 93.2 95 86 Fleetwood Enterprises 1,081.9 595.9 96 Cadence Design Systems 1,056.0 173.6 97 68 Electronic Arts 1,055.7 217.8 98 Bergen Brunswig Corp. 1,052.7 470.6 99 PeopleSoft Inc. 1,022.5 83.0 100 Consolidated Freightways 958.8 530.0

Market as Rank % of Book 1 423 2 304 3 200 4 506 5 294 6 116 7 1,463 8 371 9 244 10 129 11 1,037 12 712 13 238 14 119 15 233 16 215 17 258 18 196 19 484 20 184 21 504 22 475 23 361 24 180 25 694 26 157 27 319 28 1,147 29 336 30 551 31 648 32 191 33 193 34 720 35 326 36 353 37 324 38 196 39 601 40 125 41 301 42 193 43 206 44 193 45 167 46 891 47 123 48 127 49 185 50 404 51 79 52 400 53 289 54 151 55 805 56 267 57 166 58 542 59 589 60 305 61 254 62 540 63 484 64 159 65 183 66 256 67 245 68 741 69 274 70 414 71 154 72 967 73 334 74 616 75 804 76 169 77 523 78 240 79 518 80 121 81 396 82 766 83 137 84 2,131 85 324 86 679 87 359 88 299 89 389 90 1,162 91 513 92 740 93 95 94 1,162 95 182 96 608 97 485 98 224 99 1,232 100 181

* Includes all classes of common stock but not Times Mirror’s spinoff with Cox Communications. Wellpoint Health Networks and Health Systems International, both headquartered in Woodland Hills, are now planning a merger and are omitted from this list. If combined today, the new company would be worth about $4.3 billion and would be 27th on the list. (BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Wall Street’s Favorites

Companies with highest ratio of stock market value to sales.

4/13/95 1994 Price/ Mkt. Value Revenue Sales Rank Company ($ Millions) ($ Millions) Ratio 1 Ascend Communications 846.5 30.6 27.6 2 Protein Design Labs Inc. 320.1 15.2 21.0 3 Alantec, Corp. 356.5 25.1 14.2 4 Macromedia 512.4 36.9 13.9 5 ThermoLase Corp. 248.5 18.7 13.3 6 EPIC Design Technology 167.9 13.9 12.0 7 Alliance Semiconductor 1,124.0 94.7 11.9 8 Excalibur Technologies 125.1 10.8 11.6 9 Mercury Interactive Corp. 269.7 23.5 11.5 10 NetManage Inc. 699.4 61.6 11.4 11 Wonderware Corp. 386.9 35.7 10.8 12 3DO Co. 274.4 26.2 10.5 13 AirTouch Communications 12,848.6 1,235.4 10.4 14 McAfee Associates 329.8 32.9 10.0 15 Tejon Ranch Corp. 166.5 16.9 9.9 16 Nationwide Health Props. 659.4 70.0 9.4 17 ISIS Pharmaceuticals 138.0 15.0 9.2 18 Benton Oil & Gas Co. 317.4 34.6 9.2 19 Linear Technology 2,062.3 227.7 9.1 20 PeopleSoft Inc. 1,022.5 112.9 9.1 21 Metricom Inc. 194.4 21.6 9.0 22 Wesco Financial Corp. 854.4 95.5 9.0 23 Health Care Property 850.5 99.0 8.6 24 Ligand Pharmaceuticals 112.2 13.3 8.4 25 LTC Properties Inc. 228.2 27.6 8.3

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Wall Street’s Forlorn

Companies with lowest ratio of stock market value to sales.

4/13/95 1994 Price/ Mkt. Value Revenue Sales Rank Company ($ Millions) ($ Millions) Ratio 1 PCC Group Inc. 0.9 46.1 0.019 2 American Shared Hospital 1.1 38.9 0.028 3 House of Fabrics Inc. 12.8 463.0 0.028 4 Central Garden & Pet Co. 12.2 421.4 0.029 5 Merisel Inc. 167.2 5,018.7 0.033 6 DEP Corp. 5.5 137.5 0.040 7 Three D Departments Inc. 2.6 43.3 0.060 8 Odetics Inc. 5.8 91.3 0.064 9 Citadel Holding Corp. 13.8 194.0 0.071 10 Live Entertainment Inc. 8.5 117.2 0.072 11 Standard Brands Paint Co. 9.8 129.2 0.076 12 Barry’s Jewelers Inc. 12.4 131.8 0.094 13 Huntway Partners, L.P. 7.3 75.4 0.097 14 Computer Marketplace 3.0 31.4 0.097 15 Beeba’s Creations Inc. 9.8 100.6 0.098 16 Grubb & Ellis Co. 18.5 184.7 0.100 17 Frederick’s of Hollywood 14.0 136.7 0.103 18 For Better Living 7.5 71.4 0.105 19 Helionetics Inc. 6.8 62.7 0.109 20 Advanced Marketing Serv. 34.7 305.2 0.114 21 UnionFed Financial Corp. 6.8 59.1 0.115 22 KIT Manufacturing Co. 11.1 96.3 0.115 23 Presley Cos. 32.4 270.2 0.120 24 Golden Systems Inc. 3.3 27.7 0.120 25 Clothestime Inc. 42.5 340.8 0.125

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Highest-Priced Companies

Companies ranked by market price as a percentage of book value.

4/13/95 Market Market Value Book Value Value as Rank Company ($ Millions) ($ Millions) % of Book 1 Spectrum HoloByte Inc. 305.7 13.3 2,290 2 StrataCom Inc. 1,224.9 57.5 2,131 3 Ascend Communications 846.5 40.5 2,091 4 MacNeal-Schwendler Corp. 175.6 8.5 2,062 5 Atari Corp. 176.7 9.0 1,962 6 Incomnet Inc. 144.8 8.9 1,627 7 Oracle Systems Corp. 13,799.8 943.0 1,463 8 Davidson & Associates 602.7 41.8 1,441 9 Macromedia 512.4 35.7 1,437 10 McAfee Associates 329.8 23.0 1,433 11 Orion Pictures Corp. 116.3 8.6 1,356 12 Rational Software Corp. 134.1 10.2 1,319 13 Tekelec 190.6 15.4 1,235 14 PeopleSoft Inc. 1,022.5 83.0 1,232 15 3DO Co. 274.4 22.3 1,231 16 Broderbund Software Inc. 1,083.8 93.2 1,162 17 Alliance Semiconductor 1,124.0 96.8 1,162 18 3Com Corp. 3,760.4 327.8 1,147 19 Fritz Cos. Inc. 662.3 58.0 1,141 20 Cisco Systems Inc. 10,746.4 1,036.3 1,037 21 Cidco Inc. 439.8 43.8 1,004 22 Altera Corp. 1,528.3 158.0 967 23 Excalibur Technologies 125.1 13.0 961 24 Network Peripherals Inc. 194.7 21.5 905 25 Mylex Corp. 158.3 17.8 891

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Lowest-Priced Companies

Companies ranked by market price as a percentage of book value.

4/13/95 Market Market Value Book Value Value as Rank Company ($ millions) ($ millions) % of Book 1 Glendale Federal Bank FS 462.8 882.4 52 2 Standard Pacific Corp. 183.7 291.1 63 3 International Technology 102.2 157.6 65 4 Sumitomo Bank of Calif. 212.8 319.7 67 5 Merisel Inc. 167.2 242.0 69 6 SFFed Corp. 144.9 195.4 74 7 Cubic Corp. 119.0 159.5 75 8 Alexander Haagen Props. 139.6 186.3 75 9 First American Financial 225.8 299.3 75 10 Broadway Stores Inc. 280.8 365.5 77 11 Bay View Capital Corp. 166.5 214.9 77 12 H.F. Ahmanson & Co. 2,342.0 2,964.6 79 13 Downey Financial Corp 291.0 366.2 79 14 Capital Guaranty Corp. 152.8 183.3 83 15 Coast Savings Financial 336.8 381.6 88 16 Sizzler International 163.7 181.8 90 17 Fibreboard Corp. 129.8 142.9 91 18 Fremont General Corp. 323.1 355.3 91 19 FirstFed Financial Corp. 174.9 184.7 95 20 Reliance Steel & Aluminum 138.8 146.3 95 21 FHP International Corp. 1,089.5 1,146.4 95 22 Burnham Pacific Property 195.1 205.0 95 23 Argonaut Group Inc. 729.2 745.6 98 24 Western Invstmt. RE Trust 202.7 204.7 99 25 Jefferies Group Inc. 168.1 163.2 103

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Charging Ahead

Companies ranked by percent gain in stock price.

% Change 4/13/95 4/13/94 Stock Stock Stock Rank Company Price Price Price 1 Tekelec 537 21.50 3.38 2 Zitel Corp. 439 12.13 2.25 3 Alliance Semiconductor 429 45.00 8.50 4 Semtech Corp. 405 12.63 2.50 5 Emulex Corp. 374 18.38 3.88 6 Tencor Instruments 313 63.75 15.44 7 StrataCom Inc. 280 38.50 10.13 8 Printronix Inc. 273 19.25 5.17 9 Sierra Semiconductor 253 26.00 7.38 10 McAfee Associates 242 28.25 8.25 11 Proxima Corp. 241 29.88 8.75 12 Eltron International 238 27.00 8.00 13 Broderbund Software Inc. 231 55.00 16.63 14 Asyst Technologies Inc. 225 39.00 12.00 15 Electronics for Imaging 218 51.75 16.25 16 LSI Logic Corp. 218 58.88 18.50 17 Datametrics 183 7.25 2.56 18 PeopleSoft Inc. 176 43.00 15.56 19 Alantec, Corp. 174 42.50 15.50 20 PairGain Technologies 169 19.81 7.38 21 Datum Inc. 167 11.00 4.13 22 Network Equipment Techs. 162 23.25 8.88 23 Silicon Valley Group 160 27.00 10.38 24 Ultratech Stepper Inc. 160 54.63 21.00 25 Trident Microsystems 160 16.25 6.25

Note: Includes IPOs before 4/13/94

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Falling Behind

Companies ranked by percentage loss in stock price.

% Change 4/13/95 4/13/94 Stock Stock Stock Rank Company Price Price Price 1 Gensia Inc. -83 2.69 16.00 2 T*HQ Inc. -81 2.81 14.93 3 IWERKS Entertainment -79 4.13 19.25 4 Trimedyne Inc. -75 2.75 11.00 5 Lottery Enterprises Inc. -74 2.38 9.00 6 Citadel Holding Corp. -70 2.06 6.88 7 Merisel Inc. -69 5.63 18.13 8 Fresh Choice Inc. -68 7.88 24.75 9 Live Entertainment Inc. -67 3.50 10.63 10 MTI Technology Corp. -65 3.13 9.00 11 Int’l Lottery/Totalizator -64 2.75 7.63 12 Central Garden & Pet Co. -64 3.80 10.50 13 Styles on Video Inc. -63 4.69 12.75 14 Aldila -61 6.38 16.38 15 Natural Wonders -60 3.00 7.50 16 Gupta Corp. -60 10.13 25.00 17 OroAmerica -59 5.25 12.88 18 Syncor International Corp -59 8.00 19.50 19 Clothestime Inc. -59 3.00 7.25 20 Coastcast Corp. -59 10.88 26.25 21 MICOM Communications -57 7.38 17.25 22 Centigram Communications -56 15.38 35.00 23 Exstar Financial Corp. -56 4.00 9.00 24 NetFRAME Systems Inc. -56 6.00 13.50 25 Giant Group Ltd. -55 6.25 14.00

Note: Includes IPOs before 4/13/94