Just five years after its founding by Eric J. Ruff, PowerQuest Corp. of Orem was recognized Tuesday as the fastest-growing company in Utah.
PowerQuest, which makes storage management software like DriveCopy and EasyRestore for computer network servers and personal computers, topped the MountainWest Venture Group's fourth annual Utah 100 list.Iomega Corp., the Roy-based manufacturer of computer data storage drives, headed the group's list of the state's top 25 revenue growth companies.
Both lists were released during a Salt Lake ceremony that was scheduled to feature Gov. Mike Leavitt.
J. Scott Nixon, a partner in Price-water-houseCoopers and chairman of Utah 100, said PowerQuest was followed on the larger list by InnerDyne Inc. of Salt Lake City, Vitrex Corp. of Ogden, Bear Creek Country Kitchens of Heber City and JD Services Inc. of Salt Lake City.
Those five companies saw their combined revenues increase from just under $1 million in 1993 to more than $114 million in 1998, for an average increase of 14,456 percent, Nixon said.
"A growth rate of 215 percent was necessary just to crack the top 100, which is similar to prior years," he said. "However, the overall percentage increase was boosted by an amazing growth in the top five winners."
Nixon said MountainWest sent applications for the contest to about 14,000 companies this year, and more than 300 were returned.
To be eligible, companies have to be Utah-based, U.S. organizations that have been in business for at least five years and had 1993 sales of at least $25,000. MountainWest relies solely on information provided by the companies that apply, without independent verification.
The Utah 100 list is based on growth percentages over the five years of 1993 through 1997, he said, while the top 25 is based on the dollar value of revenue growth over the same period.
Nixon said the different lists give a chance for both large and small companies to gain recognition for their rapid growth.
"It means so much to them . . .," he said. "A majority of these companies at some time had to bet the ranch, had to take huge risks, had to give their all. Most of them started with nothing.
"You see a lot of personal sacrifice and a reinvestment of the profits generated by the company."
Most of the honored companies - about 44 percent on the Utah 100 and 50 percent on the top 25 - are service providers, Nixon said. He said that is a change from the last couple years, when technology and consumer products companies dominated the awards.
"(For the Utah 100) revenues increased from $481 million to $3.5 billion, for an overall increase of 625 percent," Nixon said. "This is twice as high of a percentage as we have had in any of the previous three years of the Utah 100."
After Iomega, the top 25 list includes First Security Corp., Franklin Covey Co., Zions Bancorporation and SOS Staffing Services Inc., all of Salt Lake City.
"Revenues (for all of the top 25) increased from $3.1 billion to $7.8 billion, for an overall increase of 151 percent, up from a 91 percent growth rate last year," Nixon said. "The $7.8 billion total revenue in 1997 for the top 25 winners is approximately $4 billion more than the total revenues of the top 25 winners from last year's event."
Propeller Inc. topped the list of fastest-growing companies last year, and First Security Bank finished first in the revenue growth category.
Major sponsors for the contest were Bowne & Company Inc. and PricewaterhouseCoopers. Other sponsors were Bremer Public Relations Inc.; D.A. Davidson Co.; First Security Bank; Holland & Hart LLP; Jones, Waldo, Holbrook & McDonough; Kimball, Parr, Waddoups, Brown, Gee & Loveless; R.C. Willey; the Utah Department of Community and Economic Development; and Zions Bank.