21. Brocade Communications
Storage area networking
Brocade has woven a strong revenue stream from its SilkWorm storage products, posting a 336 percent increase to $451 million in 2000 and sustaining the trend in 2001s first half. Brocade and five competitors plan to standardize the way data traffic moves among their gear to speed deployment of storage area networks.
22. Redback Networks
Network management systems
Redback Networks is reeling. The maker of management systems for metro optical and broadband networks pulled off a 333 percent revenue increase in 2000, but slowing sales in 2001 drove the stock from $181 into the teens. Directors dumped CEO Vivek Ragavan in May and are looking for a more seasoned leader to revive Redback.
23. General Magic
Voice application software
Once written off as a tech experiment gone awry, General Magic — formed in 1990 with talent from Apple Computer — is finding a new voice on the Web. Its software and hosting services enable users to add voice access to applications. General Motors, a stakeholder, uses General Magics magicTalk platforms in its OnStar feature, which “talks” to drivers.
24. Vignette
Content management software
Vignettes fortunes have risen and fallen with the Internet boom. The companys stock peaked at $200.94 on April 7, 2000, and was split 3-to-1. It has since plummeted to $8, and Vignette has laid off almost a quarter of its work force since January. Executives hope the company will be profitable by the end of the year.
25. VA Linux Systems
Linux applications software
VA Linux systems grew its business almost 290 percent last year, but 2001 has been a different story. Fiscal third-quarter revenue of $20.3 million compares with $34.6 million a year ago. Amdahl veteran Ali Jenab has been brought in as president and chief operating officer to stem the decline.
26. webMethods
Business integration software
With an April deal to provide its business integration platform to Ford Motor, webMethods claims 11 of the Fortune 15 among its customers. CEO Phillip Merrick sees “healthy demand” for “both internal integration and B2B integration.” WebMethods will “monitor our cost structure, given that our customers, in a number of cases, are deferring IT spending decisions.”
27. Click Commerce
Channel management software
The 264 percent spurt from $10 million to $36.4 million in 2000 capped off four years of expansion that began in 1997 when the company had $1.3 million in revenue. The supplier of channel management software raised $52 million in a July 2000 IPO and is partnering with Microsoft and Accenture to drive growth.
28. Universal Access
Network infrastructure services
As its competitors struggled to meet revenue goals, Universal Access built on its 259 percent gain in 2000, raising first-quarter 2001 revenue to $51.1 million from $14.3 million the year before. Profits are another matter. “If we fail to forecast our network capacity accurately . . . it will be difficult for us to become profitable,” the company admitted.
29. BroadVision
E-commerce software
The good times rolled last year for BroadVision, which signed up 557 new customers. The company expanded rapidly, opening 25 new offices worldwide, and it acquired Interleaf, a maker of wireless content management software, for $877 million. This year, however, the company faces much weaker demand and is laying off 15 percent of its work force.
30. Terayon Communications
Broadband communications
Terayon spent 2000 packing its portfolio with broadband access technologies, and though revenue was up 250 percent to $339.5 million, the company is struggling in 2001. In May, it took a $575 million first-quarter charge. “The downturn in broadband telecommunications markets has negatively impacted our revenue and cash flow from acquired businesses,” said CEO Zaki Rakib.
31. SilverStream Software
Enterprise integration software
SilverStreams revenue soared 249 percent in 2000 to $80.6 million, but profits proved elusive. The company reported a $14.7 million loss for 2000 after a $19.4 million loss in 1999. The company says demand for its eBusiness solutions is strong, but the slowing economy crimped first-quarter sales.
32. Openwave Systems
Mobile Internet software
Openwave is seen as a wireless industry bellwether stock by analysts who view its revenue model as an indicator of the markets health. About 17.4 million subscribers use Openwave software to access the wireless Web. With the June departure of Alain Rossmann as chairman and executive vice president for strategy, President and CEO Don Listwin became chairman.
33. Scient
Systems integrator
Growth was a constant for Scient in 2000 as it rode the e-commerce boom, but by the end of the year the company was headed for trouble. Like most other Internet consultants, Scient was forced to slash jobs and cut expenses. Scient will have to struggle to reach $100 million in revenue in 2001.
34. Exodus Communications
Web center hosting
Exodus is almost synonymous with web hosting and its fate may determine that of the whole industry. The company is reinventing its real-estate business model in favor of managed services — advanced outsourcing schemes attractive to business customers. Its looking to these higher-margin services to improve profits and keep its 2000 revenue of over $800 million growing.
35. ITXC
Voice over the Internet
ITXC.net, the largest global network for voice on the Internet, with more than 360 points of presence in more than 197 cities and 78 countries, notched several milestones. Minutes of use increased 537 percent to 956 million, up from 150 million minutes in 1999. ITXC is now one of the largest international carriers in the U.S.
