Only the strong survive

By christina p. o’neill

There’s a new growth pattern emerging with our Top Growth Companies this year. It’s almost a counterintuitive process. For example, if you told us four years ago that a small business would grow exponentially by buying a fiber cable contracting business to support telephone service, we would have said, "no way." But that’s what our No.1 company has done. And if you told us that someone would base a successful business on online product sales, we would have said that company put too much faith in its own press releases. But this year’s crop of Top Growth Companies has two such examples. In this autumn of heavy rains, is it something in the water?

In compiling the information for this feature, we asked the same question again and again: What is the key thing that has contributed to your growth over the last two to three years? And repeatedly - across several different industries - the answer has been: the players in the company’s industry are consolidating or going out of business, as regulations get stricter and customer expectations get higher. This results in a shrinking field of competitors and a growing number of customers, many of whom need things they didn’t need three or four years ago.

You’ll notice something different about the way this year’s list was compiled. We’ve separated out the private companies from the public companies, and both of those from the non-profit organizations. Public companies are a breed unto themselves, with different priorities and different economies. And non-profits, some of which rely on donations for a big chunk of their revenue, are measured by a different yardstick yet. But they wouldn’t be getting those donations if they weren’t serving their constituencies. That growth can be measured just as much as for any for-profit business.

Here are some examples of winnowing of the field of competitors versus growing markets. Contract electricians, such as our No. 1 company, James Buchanan Electric, face strict regulatory requirements in the projects they undertake. Mom-and-pop contractors who can’t afford to train their personnel cannot keep up with the demands for increased skill sets and proficiencies. Meanwhile, the same regulatory climate creates more customers who need the work of the skilled contractors to be compliant with the laws.

The specialty and consolidation trend extends to big companies such as the mighty Nypro Inc., which since its founding has risen head and shoulders above the bulk of its competition, investing in people and infrastructure. Nypro, a contract manufacturer with plants worldwide, is getting into markets that are increasingly specialized, widening its lead in an industry that, decades ago, was predominated by small, generalized manufacturers.

The companies on our Top Growth list got there through a combination of things: knowing what their focus is, acquiring wisely, specializing in areas with little competition, and making the investment in workforce training.

This is the kind of growth we like to honor, and honor it we will, at an event to be held November 17, from 5:00-8:00 p.m. at the Beechwood Inn in Worcester. It’s co-sponsored by Clark University, Penta Communications and Brown & Brown Real Estate, and the keynote speaker is George Gendron, former editor-in-chief of Inc. magazine and a frequent commentator on entrepreneurship. For more information or to register, contact Maria at 508-755-8004 ext. 238, or e-mail at mmelas@wbjournal.com. To register online, visit www.wbjournal.com.

2005 Top Growth

Private Companies

1. James Buchanan Electric Inc.

740 Quaker Highway, Uxbridge 01569

508-865-3335

www.buchananelectric.com

Founded:1992

President: James Buchanan

Founder: Yes

If it has wire, we hook it up; if it needs wire, we get it there. Those are the watchwords of James Buchanan, whose eponymous company, James Buchanan Electric Inc., is the flagship division of a multi-faceted, production-based residential and light commercial electrical contractor.

It specializes in new construction apartment complexes, assisted living units, hotels, motels, condo complexes, and single family developments. But it has also branched out into providing telephone hook ups, fire-prevention services, communication services, and a new division, Responsive Electric residential electric services.

The company’s No. 1 spot on our Top Growth list this year is the result of a consistent pattern of diversification into what are apparently the right industries at the right time. As building regulations get stricter in the New England states, the field of contractors that can perform the needed work has shrunk, while the customer base that needs that work has expanded. This is true in Rhode Island, where Buchanan does a substantial portion of its contracting business. When that state issued tough new fire regulations after the fire at The Station nightclub which killed 100 people, it also shrank the number of eligible electrical contractors from 10,000 to about 300 - and had to extend the compliance deadline because of a shortage of qualified contractors. Buchanan adds that next year, Massachusetts will adopt a set of laws that will make Rhode Island "look like kindergarten." But his company is ready for it, he says.

Banker Rob Paulsen concurs with Buchanan’s assessments and characterizes him as someone who’s ahead of the curve when it comes to regulatory changes in his industry. In advance of the Rhode Island fire regulations, Paulsen says, Buchanan was already training his employees to perform the new work. While the growth curve has been steep, Paulsen says, Buchanan seems to be keeping up with it.

The purchase of AcuLan Performance Cable in 2002 was another turning point for Buchanan Electric. AcuLan had several good customers at the time; Buchanan expanded that customer base and invested heavily in training its employees to service the new, rapidly evolving business. The market - which only four years ago was in the throes of contraction - is growing fast. The cost of fiber wiring has dropped to the point where it’s cost-effective for big customers to replace their copper wires with fiber, which is being used for everything from data transmission to energy management.

Revenues for 2005 are on track to reach $14 million, he says, with 2006 revenues close to $20 million based on current intelligence. Between now and 2006, there could be more strategic acquisitions of companies whose market niche feeds into the core electric business.

The company, which is licensed in 13 states, was founded in Sutton and moved to Uxbridge three years ago. Buchanan says its continued profitability has allowed him to invest in a generous benefit package and bonus system for the firm’s 140 employees. "Anybody can buy pipe and wire and fire alarm systems," he says, but you’ve got to have the right people to install them. Buchanan Electric’s employees, he says, "are the most precious commodity we have."

2. IPG Photonics Corp.

50 Old Webster Road, Oxford 01540

508-373-1100

www.ipgphotonics.com

Founded: 1990

CEO: Valentin Gapontsev, PhD.

Founder: Yes

After facing the meltdown of its customer base during the telecommunications crash of 2001, IPG Photonics is reaping the benefits of a major restructuring and refocusing effort. It returned to profitability in calendar 2004 after suffering losses in 2001 and 2002 and becoming "revenue neutral" in 2003. It did so by shifting its product focus from selling amplifiers to major telecom companies - which made up 87 percent of its revenue in 2000– to marketing its unique high-powered fiber lasers to the materials processing industry as well as to the medical and cosmetic surgery markets.

IPG was the first to develop fiber lasers powerful enough to compete with traditional lasers for industrial uses. Company officials note that, while IPG Photonics had to cut staff, cancel research projects and sell assets during 2001 and 2002 – when its revenues plummeted by 50 percent – it still pursued plans to set up a manufacturing facility to make its own diodes, a key component to its unique high-power lasers. The semiconductor plant, which produced its first diode two years ago, gives IPG a major edge in the burgeoning industrial laser market and lets it develop new products faster than competitors, according to company founder and CEO Valentin Gapontsev.

In the first half of 2005, IPG Photonics saw a 58 percent increase in sales and a 200 percent increase in net income, according to CFO Tim Mammen. Company officials say it is expected to make $90 million in 2005 compared to $60.7 million in 2004. Mammen says the company also expects to maintain a 40-50 percent top line growth in revenues. IPG Photonics is also considering launching an initial public offering among its options to raised added capital. The company had launched an IPO in 2001 but withdrew the effort due to unfavorable market conditions. Gapontsev says he expects his company, which currently employs 220 after having to cut its workforce to 80 in 2002, to dominate the $2-billion laser cutting market in two to five years and to be a $1-billion company by 2010 when he expects it to dominate the overall industrial laser market.

3. Atlas Box & Crating Co. Inc.

38 Providence Road, Sutton 01590

508-865-1155

www.atlasbox.net

Founded: 1988

President: Arthur Mahassel

Founder: No

Atlas Box’s packaging can be as sophisticated as some of the products that are shipped in it. Custom-designed packages of corrugated cardboard, wood, foam padding and barrier wrap to keep the contents free from humidity are all part of the mix.

Atlas has grown with its customers, many of them blue-chip public and private companies such as EMC Corp., Waters Corp. and Bose Corp. But it hasn’t been coattail growth - the company invested in facilities and employees when the economy was poor, and was ready to meet demand when things picked up.

The company’s containers are designed to customer specifications. Products run the gamut from standard pallets to custom-engineered skids and crates constructed on-site. Several different grades of foam can be cut to any size or shape, and the company has a supply-buying program it offers customers, allowing them to consolidate purchases in order to reduce inventory.

Atlas is headquartered in Sutton, where it has a 120,000-square-foot facility with 195 employees. It also has a 15,000-square-foot manufacturing plant in Suzhou, China, which employs eight, and a manufacturing and distribution center in Cork, Ireland that employs about 30. It has a North Carolina facility that employs eight and a newly opened Somerville, NJ plant that employs one, with plans for future growth.

A Massachusetts Tax-Exempt Industrial Development Bond in FY 2004 helped the company construct a 150,000-square-foot structure. Its 2003 MassDevelopment bond for $4,050,000 enabled the company to purchase new manufacturing equipment, add to its existing facility and refund a 1998 bond. The company’s efforts added about 30 new jobs in Massachusetts

In April of this year, Atlas received a Workforce Training Grant of nearly $121,000, to be used for in-house training in auditing and lean manufacturing. The curriculum is in addition to Atlas’ existing 90-day training program for new recruits.

4. Ameresco Inc.

111 Speen St., Framingham 01701

508-661-2200

www.ameresco.com

Founded: 2000

President: George Sakellaris

Founder: Yes

Ameresco, last year’s No. 1 Top Growth Company, is the largest independent comprehensive energy solutions provider in North America. It develops innovative strategies, systems and technologies for renewable and sustainable energy generation and infrastructure renewal, in order to reduce operating expenses, increase energy reliability and enhance the environment. Its systems, strategies and technology are developed for commercial, government, housing, industrial and institutional clients.

Ameresco is a two-time winner of the EPA’s Industry Partner of the Year for 2003 and 2004, an award that recognizes achievement by a developer in the landfill gas industry. This marks the second consecutive year that Ameresco has received the distinguished award, given annually to recognize contributions of landfill gas developers to improving the environment. Landfill gas can be used to generate "green" electricity - an endeavor that’s likely to attract more interest as energy costs soar this coming year.

During 2004, Ameresco and its project partners developed and brought online five new landfill gas utilization facilities, more than doubling its portfolio. When completed, the company’s current and planned landfill gas projects will produce 81 megawatts of electricity, enough to power nearly 53,000 average homes and reduce methane gas emissions by 300,000 tons. More than 7.5 million barrels of oil would be needed to generate an equivalent amount of energy, the company states.

Ameresco, with locations throughout the U.S. and Canada, marked 2004 as an acquisition year. In June 2004 it purchased Exelon Solutons from Chicago-based Exelon Corp., bringing in about $50 million in contracts and assets. The acquisition was responsible for about 30 percent of the increase in Ameresco’s 2004 revenues over those of ‘03.

The corporation’s latest acquisition was Planergy, in early 2004, an addition to its public housing subsidiary, Citizens Conservation Services. Through Ameresco’s first three years, acquisitions were key to its growth, but that process seems to have given way to its contract and partnering bases.

Earlier this month, Ameresco announced it has received a 20-year, $18.5-million energy infrastructure renewal project for the Norfolk/Walpole Correctional Complex from the Mass. Department of Correction. When construction is complete in fall 2006, Ameresco states, the project will save more than $1.5 million annually. The contract requires no capital outlay from the state, with improvements expected to be paid for from energy cost savings.

5. Blue Cod Technologies

295 Donald Lynch Blvd., Marlboro 01752

508-970-0170

www.bluecod.net

Founded: 2000

CEO: Jeff Brown

Founder: Yes

Blue Cod Technologies Inc. offers database management and other information technology services to insurance companies and some financial institutions. The business was founded by former insurance industry executives, including some former employees of Worcester-based Allmerica Financial Corp., and has distinguished itself from overseas outsourcers through its expertise in insurance issues.

Growth during 2004 was in line with that of the previous three years. Blue Cod, started in 2000 as what CEO Jeffrey Brown describes as an unfunded, organically-grown business, has grown anywhere from 25 percent to 100 percent in each of the last five years. In 2004, Blue Cod took on new customers who required extra resources to service them, as well as expanding its relationship with existing clients.

Its core product is software that helps automate basic insurance functions such as policy renewals. For one client in Virginia, Brown reports, Blue Cod was able to save them 90 percent of human effort in renewing homeowners’ policies and 85 percent in renewing personal auto insurance policies. The result for the customer is that staff is freed up to provide much better customer service - "those things people are paying attention to are things they should be paying attention to," he says.

The other growth area for Blue Cod is its managed IT services business, in which the company maintains all of a client’s hardware and software, giving the customer access to it over the Internet. Young companies that can’t build their capacity fast enough to pursue a new market can team up with Blue Cod, which frees up existing staff for the growth effort. The company’s technology allows smaller insurers to manage customer data and generate reports without making a big investment in new equipment.

6. Curtis Tractor Cab Inc.

111 Higgins St., Worcester 01606

1-800-343-7676

www.curtisplow.com

Founded: 1968

President and CEO: Frederick Curtis Jr.

Founder: No

Frederick Curtis Jr. and his brother Marc have done well with the company their father founded, in the 17 years they’ve run it. They’ve grown revenues by nearly 4,000 percent, from $1 million to an expected $50 million for the current year. The company’s workforce also grew, from 21 to 221 employees.

The company today occupies more than 120,000 square feet and it’s bursting at the seams. Fred Curtis Jr. says he’s on the lookout for 200,000 square feet of space to move into. It’s a far cry from the 5,000 square feet of space the company occupied in 1988, the year that Frederick Curtis Sr. turned the business over to his two sons.

At the time, the company sold plastic and steel enclosures for tractors and other vehicles, which you could order in any color as long as it was white. Fred Jr. began offering color-coordinated cabs. He also developed color brochures and was soon being approached by manufacturers of tractors and other vehicles - big names such as Moline, IL-based John Deere, Torrance, CA-based Kubota Tractor and Santa Ana, CA-based Kawasaki Motor Corp. – to make cabs that are integrated into those companies’ branded products.

The company’s proprietary snowplow mounting system makes it possible to attach Curtis snowplows to the front of a truck in less than 10 seconds, as opposed to the five to 10 minutes required of competitors’ plows. The system represents about 25 percent of Curtis’ sales. Compared to $75,000 in 1988, Curtis’s Tractor’s Canadian sales grew to $2.6 million in 2004 and its European sales jumped from nothing in 1988 to $700,000 also in 2004.

Curtis has high hopes for the company’s new line of climate-controlled golf cart enclosures. The sleek-looking enclosures turn a typical golf cart into a protected enclave with some of the same features as an automobile. According to Curtis, just 6 percent of the golf cart market share would mean $30 million in sales.

High points for Curtis in ‘04 and ‘05 are a new contract with Kubota Tractor Corp., and a furthering of existing contract with Kawasaki Motor Corp.’ Polaris Industries. The company is also penetrating into the Midwest with its snow and ice control division.

The company faces few competitors because of its specialty niche, Curtis says. For the future, he’s seeking to accommodate the Curtis’ rapid growth by finding a new location with 200,000 square feet of space. He says he expects the company to hit $75 million to $100 million in revenues in the next few years. Employee headcounts will grow, too, but not at the same rate, as the company plans to increase its automation. "We are offsetting our labor demand through some automation, which is [necessary] to be competitive. But nonetheless ... we will need more people as we continue to grow," he says, adding that the company’s growth has been "all organic growth with zero acquisitions." Will that change? "I have my eye on a couple of things," he says, "but that’s for the future."

7. Bulbs.com

40 Jackson St., Worcester 01602

508-363-2800

www.bulbs.com

Founded: 1999

President: Steven Rothschild

Founder: Yes

To listen to Steve Rothschild talk, this year has been the best yet for Bulbs.com. Current year revenues are running 50 percent ahead of 2004 revenues, he says, and the anticipated revenue increase for 2006, if all comes to pass as expected, will be more than the entire sales volume of 2003.

When we last visited Rothschild in the Top Growth feature for 2004, the company was attracting 700 new customers a month. That monthly figure has now topped 1,000, he says.

The company opened two new warehouses in late 2004, one in Ohio and one in California, enabling it to offer next-day and second-day delivery of its top 300 items nationwide with no additional shipping or handling charges.

Despite a small, 34-person workforce — none of whom came from the lighting industry – Bulbs.com has reached the size where it has a good command of volume and buying power. It can make large purchases from companies that have top-quality product but which need to move their inventory. Bulbs.com can strike a good price and pass the savings on to customers, Rothschild says. "We know our customers’ uses and time frame and our bulb track system," he says. Bulbs.com’s ability to turn its inventory over is above the industry average, he says.

The company got where it is by redefining the bulb market and the way business customers shop for bulbs, he says. A standard electrical distributor does 7 percent of their sales in light bulbs. For Bulbs.com, it’s 90 percent, and the company’s specialized knowledge of the bulb market, combined with its knowledge of customer usage patterns, makes the process more efficient. "So, it’s a slam-dunk, hands-down win," he says. "Everybody up and down Main Street, and across the country, needs light bulbs."

8. Consigli Costruction

Co. Inc.

197 Main St., Milford 01757

508-473-2580

www.consigli.com

Founded: 1905

President: Anthony Consigli

Founder: No

Consigli Construction, a regular on our Top Growth Companies list, provides pre-construction, construction management, design/build, and general contracting services.

After a hiatus in 2003, the education sector started picking up momentum, bringing the company several major renovation projects. They include a 13,000-square-foot addition to Bowdoin College’s Museum of Art; transforming the former president’s residence at Wellesley College into new offices for the Board of Admission; reconstructing and restoring Phillips Academy’s memorial bell tower and carillon; and renovations of Harvard University buildings in Cambridge to create new office space. Closer to home, Consigli is working on its third project for Worcester-based Clark University which involves the construction of a 36,000-square-foot addition to the existing math/physics building. Across town, it’s partnering on the $90 million vocational school on Worcester’s Belmont Hill.

Commercial projects include provision of design/build services for the executive offices of Whitinsville-based UniBank for Savings, and the renovation of a 75-year-old former post office in Clinton into corporate headquarters for Radius Product Development, the R&D division of Nypro Inc.

Last year, the company entered the multi-family housing market, an entirely new business sector, spurred by its expertise in restoration, in which older non-residential structures are adapted into housing. Its first project was the conversion of part of the Boott Cotton Mill in Lowell to apartments for Boston-based Winn Development.

Additionally, Consigli served as the construction manager for the $45 million expansion of Milford Regional Medical Center, which Vice President Matthew Consigli characterizes as a "complex" project and a sizeable one for the company. The hospital’s new patient care center opened last November.

This year, the company is renovating and restoring a 30,000 square foot mill building complex in Whitinsville, into a mixed-use facility for Alternatives Unlimited, a non-profit human health service organization.

Consigli notes that the construction market is moving more toward specialization, and that customers expect their builder to be specialized, too. "They want to know that they’re dealing with an expert. ... We try to improve every facet of our business," he says, citing a national award from ConstrucTech for its use of technology in construction and its innovations in the field of recycling construction material. New, stricter recycling standards will be implemented soon by the Massachusetts Department of Environmental Protection, he says.

Revenues are up again in 2005 and Consigli says he expects a "modest" increase in 2006 as well. "We don’t grow for the sake of growing," he says. "We’re in this for the long haul." Noting an ever-constant focus on the firm’s reputation, he says, "People talk. If we’re successful, they’ll tell their friends."

9. Corporate Environmental Advisors Inc.

Hartwell Park, 127 Hartwell St., West Boylston 01583

508-835-8822

www.cea-inc.com

Founded:1985

President: Steven Migridichian

FounderYes

While he likes to say that CEA is in "the bad news business," President and CEO Steven Migridichian says that the last two years have been good for the company, despite a considerable consolidation in the environmental remediation business. Late last year, the state Department of Environmental Protection awarded CEA an open-ended emergency response contract covering parts of Central Massachusetts. It’s applicable to petroleum and gasoline spills in which DEP is unable to confirm the responsible party for the clean up or where the responsible party has not admitted liability for the incident.

The award is gaining the company credibility with municipalities and has increased private-sector leads, Migridichian says. "If you’re good enough to work for the people who judge you," he says customers tell him, "you’re good enough for my firm."

CEA’s roster of clients includes Fortune 500, major, national and international companies, and the company employs six full-time Licensed Site Professionals, the largest number of such professionals west of the Route 128 belt, Migridichian says. Last year, it opened satellite offices in Cumberland, RI and in Manchester, CT. Migridichian says he expects to open an office in New Hampshire before yearend and in New York State next year.

Changes in the regulatory climate have put more burdens on private consulting firms, he notes. Smaller firms of 10 people or less, which can’t secure liability insurance or which have run into regulatory trouble, have merged or gone out of business. Concerns about budgets, deadlines, and whether or not regulators will dispute their findings have driven many out.

But Migridichian has not been without challenges of his own. In late 2003, the DEP revoked his license to practice as an LSP for five years upon allegations of substandard work at four sites. He says the action was the result of a difference of opinion with regulators and notes that he is still working with three of the four customers. He says more than 10 percent of the state’s LSPs have received similar sanctions, most often as the result of differences over interpretation of the 21-E law. Since the ruling, Migridichian has concentrated on the administrative strategic and corporate aspects of the business and says the turnover rate at the firm is far below the industry average. His prophecy that his individual setback would not adversely affect the firm, because the sanctions were against him and not the company, seems to have come to pass, as reflected in the company’s revenue growth and ability to expand.

Nabil Farooq, vice president at Flagship Bank, which handles CEA’s banking, agrees with Migridichian’s assessment of the company’s growth and its place in the market. Increased regulatory requirements have expanded the market for CEA’s work at the same time that the number of players in the environmental remediation field has been shrinking, Farooq concurs. CEA’s strength, he says, is that it has enough licensed site professionals to handle the growing caseload, while Migridichian is concentrating on what the president of a company should be doing – bringing in sales. Farooq also says the emergency response contract has brought in a lot of business for the firm.

"There are other companies that can do [21E] work, but not with the reputation CEA has," Farooq says. "When we see a report stamped by CEA, we’re very happy."

10. Nypro Inc.

1 Union St., Clinton

978-365-9671

www.nypro.com

Founded: 1955

President: Brian Jones

Founder: No

Nypro Inc., which posted $957 million in 2004, is on its way to a billion-dollar year. Company spokesman Al Cotton says the company’s continued growth comes from expansion of its overseas operations, a healthy increase in its medical device business, and its entry into the specialty packaging market.

The company spent much of late 2004 in expansion and acquisition mode. It doubled its plant space in Mexico, where it was the largest plastics contract manufacturer at the end of 2004 with 1,200 employees. To add to that, it bought a 100,000-square-foot plant from InteSys Technology Inc. and is adding several hundred more people. The company is building a new, 60,000-square-foot facility in Brazil’s Manaus Tax Free Zone Industrial Park, with the potential to double the size of that plant, which employs 200. In December, it announced its 10th plastics contract manufacturing facility in China, which was set to expand from 74,000 square feet to 95,000 square feet earlier this year and to employ 250 people.

But it won’t stop there. In January of this year, Nypro announced plans for 10 additional China plants by the end of 2006, doubling its employment there from 7,000 at the time to a projected 14,000. Currently, Nypro employs 15,000 worldwide.

The new factories will serve both domestic and export markets. The demand for electronic and telecommunications products sparked Nypro’s penetration into China, but it plans to branch out into the health-care, consumer and automotive markets. Much of the demand for health-care products in China is from multinational medical device firms that want to sell to China.

In a reaction to China-bashing by the region’s manufacturers, Nypro President Brian Jones delivered a "snap out of it" speech to the audience at the Connecticut Business & Industry Association’s Next Generation Manufacturing Conference last May, according to a report in the Connecticut Post. Improving time-to-market for new products was what had kept the company growing while others shrank, he said - and the innovations came from the company’s employees.

2005

Top Growth

Non-profit Companies

1. Seven Hills Foundation

81 Hope Avenue, Worcester 01603

508-755-2340

www.sevenhills.org

Founded: 1953

President/CEO: David Jordan

Founder: No

Seven Hills has grown rapidly over the last decade under the leadership of David Jordan, selected by the Worcester Business Journal as one of our 2003 Business Leaders of the Year. During his tenure, the organization has changed its identity, refocused its mission and has grown from a $12 million nonprofit corporation to a $78 million organization for fiscal year 2004. Seven Hills is now one of the largest human health services organizations in Central Massachusetts.

Seven Hills expanded its services through mergers and acquisitions, adding about 30 new group residences in the last nine years for more than 100 residential facilities. Over the three most recently completed fiscal years, Seven Hills has continued to acquire other non-profit organizatons, which constituted 20 percent of Seven Hills’ growth during the three years. Today it provides services to more than 2,000 clients through its various corporations, which include New England Residential Services Inc., Seven Hills Occupational & Rehabilitation Services Inc., Seven Hills Community Services Inc., Seven Hills Family Services Inc. and Worcester Area Arc Inc.

Working with the state Department of Education, Seven Hills also operates three State Chapter 766 special education schools for mentally and physically disabled clients. Seven Hills, through its work programs, also provides employment opportunities for about 300 disabled individuals in the private sector.

2. Digital Federal Credit Union

220 Donald Lynch Boulevard, Marlboro 01752

800-328-8797

www.dcu.com

Founded: 1979

President/CEO: Carlo Cestra

Founder:

Digital Federal Credit Union grew as the original reason for its founding shrank. Originally set up to serve employees of Digital Equipment Corp., the credit union survived by attracting other companies as sponsors for their employees as Digital shed plants, workers, and was finally acquired by Compaq Computer Corp. It’s the largest credit union in New England and among the top 20 nationwide. It has 14 branches around the country.

3. UMass Memorial Medical School

55 Lake Ave., Worcester 01655

508-856-2000

WEBwww.umassmed.edu

Founded: 1962

CEO: Aaron Lazare, M.D., Chancellor, University of Massachusetts Worcester

Dean, School of Medicine

Founder: No

UMass Memorial Medical School, the state’s only public medical school, is one of the fastest-growing medical campuses in the country. It has consistently produced noteworthy advances in clinical and basic research, and consistently ranks among the nation’s top ten medical schools in training primary care physicians. Its educational mission has expanded over the years to include residency and fellowship training, graduate education in nursing and the biomedical sciences, training in allied health professions and continuing education for healthcare practitioners.

Among colleges, the UMass system ranked 14th nationwide in generating income from campus research and new technology in the most recent survey by the Chronicle of Higher Education. Industry observers say the UMass Medical School is the catalyst that has made UMass Memorial Health Care (see related profile), a top employer in Central Mass. and the cornerstone of its health care system. All but $1 million of the $28.7 million the UMass system gained from licensing researchers’ inventions during fiscal year ‘04 ending June 30 came from the medical school, the best year ever for the university’s licensing operations, UMass reports. Most of that revenue, a total of $27.69 million, came from inventions developed at the University of Massachusetts Medical School in Worcester.

In July 2005, Governor Mitt Romney earmarked about $63 million for capital projects at the UMass Medical School, Fitchburg State College and Quinsigamond Community College, part of a $1.28 billion capital budget for this fiscal year announced by Gov. Mitt Romney during a stop at Quinsigamond yesterday. Romney said he plans to file a spending bill to dip into the state’s $500 million operating surplus to supplement the capital budget with $400 million in higher education capital investments.

UMMS has a licensing agreement with Marlboro-based Cytyc Corp. to develop a test that would predict whether precancerous cells will progress to become aggressive cancer. Many of the other deals coming from UMMS arose from discoveries about ribonucleic acid interference, or RNAi, a technology that uses genetic material to block the action of genes in living organisms. The medical school was also the site of early work on technology behind the allergy drug Clarinex, which was developed by Marlboro-based Sepracor Inc. and its corporate partner, Kenilworth, NJ-based Schering-Plough Corp.

4. UMass Memorial Medical School

55 Lake Ave., Worcester 01655

508-856-2000

WEBwww.umassmed.edu

Founded: 1962

CEO: Aaron Lazare, M.D., Chancellor, University of Massachusetts Worcester

Dean, School of Medicine

Founder: No

UMass Memorial Medical School, the state’s only public medical school, is one of the fastest-growing medical campuses in the country. It has consistently produced noteworthy advances in clinical and basic research, and consistently ranks among the nation’s top ten medical schools in training primary care physicians. Its educational mission has expanded over the years to include residency and fellowship training, graduate education in nursing and the biomedical sciences, training in allied health professions and continuing education for healthcare practitioners.

Among colleges, the UMass system ranked 14th nationwide in generating income from campus research and new technology in the most recent survey by the Chronicle of Higher Education. Industry observers say the UMass Medical School is the catalyst that has made UMass Memorial Health Care (see related profile), a top employer in Central Mass. and the cornerstone of its health care system. All but $1 million of the $28.7 million the UMass system gained from licensing researchers’ inventions during fiscal year ‘04 ending June 30 came from the medical school, the best year ever for the university’s licensing operations, UMass reports. Most of that revenue, a total of $27.69 million, came from inventions developed at the University of Massachusetts Medical School in Worcester.

In July 2005, Governor Mitt Romney earmarked about $63 million for capital projects at the UMass Medical School, Fitchburg State College and Quinsigamond Community College, part of a $1.28 billion capital budget for this fiscal year announced by Gov. Mitt Romney. Romney said he plans to file a spending bill to dip into the state’s $500 million operating surplus to supplement the capital budget with $400 million in higher education capital investments.

UMMS has a licensing agreement with Marlboro-based Cytyc Corp. to develop a test that would predict whether precancerous cells will progress to become aggressive cancer. Many of the other deals coming from UMMS arose from discoveries about ribonucleic acid interference, or RNAi, a technology that uses genetic material to block the action of genes in living organisms. The medical school was also the site of early work on technology behind the allergy drug Clarinex, which was developed by Marlboro-based Sepracor Inc. and its corporate partner, Kenilworth, NJ-based Schering-Plough Corp.

5. Milford Regional Medical Center

14 Prospect Street, Milford 01757

508-473-1190

www.milfordregional.org

Founded: 1903

President/CEO: Frank Saba

Founder: No

Milford Regional Medical Center is the hospital division of Milford Regional Healthcare System, Inc., a comprehensive healthcare system that includes the Visiting Nurse Association of the Greater Milford-Northbridge Area and Tri-County Medical Associates, Inc., a physician practice group.

A full-service, community and regional teaching hospital, Milford Regional is a nonprofit, acute-care facility serving a region of 20-plus towns.It has close to 200 physicians on its active medical staff and an additional 100 courtesy or consulting physicians. Many hold teaching appointments at New England medical schools.

Milford Regional’s new $45 million patient care center includes eight operating suites, consolidated surgical services (including admitting and pre-admission testing) and a medical/surgical floor with private rooms.The maternity center has been expanded and updated.

Milford Regional is affiliated with UMass Memorial Health Care as a major teaching hospital. Established in 1903, the original hospital was named Milford Hospital. In 1974, the name changed to Milford-Whitinsville Regional Hospital reflecting a merger between Milford Hospital and Whitinsville Hospital. In December 2004, Saba announced at the grand opening of its new patient care center that the hospital’s Board of Trustees approved a name change for the 101 year old healthcare facility, officially changing its name to Milford Regional Medical Center.

2005

Top Growth

Public Companies

1. Evergreen Solar Inc.

295 Cedar Hill Rd., Marlboro 01752

508-357-2221

www.evergreensolar.com

Founded: 1994

President: Richard Feldt

Founder: No

Evergreen Solar develops, manufactures and markets solar power products, an emerging sector that’s getting enough investor attention that last year, the American Stock Exchange developed a new portfolio, the WilderHill Clean Energy Index, comprised of publicly traded companies involved in alternative and renewable energy sources and technologies.

A growing number of states, such as California, are drafting proposals and initiatives to promote the increased use of solar energy as fuel costs rise. That’s good news for Evergreen, and it shows up in the stock price. When the California Environmental Protection Agency drafted a $100 million proposal for the state to spend $100 million annually for at least 10 years on incentives to promote the use of solar energy in California homes, Evergreen’s stock rose more than 20 percent within five days of the announcement.

During 2004, the company focused on expansion while backing off on R&D. Research revenues declined to $1.3 million for the year, compared with $1.6 million for 2003. In fourth quarter 2004, Evergreen achieved its first positive gross margin of 5.3 percent, compared with a negative 220 percent for the fourth quarter of 2003. The company’s dramatic gross margin improvement was primarily due to higher sales volumes, increased operating efficiencies, lower variable manufacturing costs and more favorable exchange rates.

The current year is also shaping up as a growth year for Evergreen. For second quarter 2005, the company had $10.7 million in revenue, up 135 percent from $4.5 million reported for second quarter 2004. The company’s net loss was halved over the same time period, to $4.5 million, or 7 cents per share for second quarter ‘05, compared with a net loss of $9.2 million, or 44 cents for the year-ago quarter.

Early in 2005, Evergreen formed a joint venture with Thalheim, Germany-based Q-Cells AG, a manufacturer of crystalline silicon solar cells, to build a $75-million, 30-megawatt manufacturing plant in Thalheim. The project broke ground in July and is on schedule for completion by the summer of 2006.

2. Exact Sciences Corp.

100 Campus Drive, Marlboro 01752

508-683-1200

www.exactsciences.com

Founded: 1995

President: Don Hardison

Founder: No

Exact Sciences Corp. develops and commercializes proprietary DNA-based tests for the early detection of cancer. Its first commercial test, PreGen-Plus(tm), is a non-invasive DNA-based test used for screening for colorectal cancer, the second leading cause of cancer death in the U.S. and the leading cause of cancer death among non-smokers.

This past Feburary, in a move to focus its R&D on improving the sensitivity and other performance aspects of PreGen-Plus, the company trimmed certain research efforts, cut 10 jobs and amended its lease to reduce its space from about 56,000 square feet to 37,000 square feet. It took a restructuring charge of $626,000.

In its second quarter report, the company says it expects R&D expenses to decrease from 2004 levels, and higher sales and marketing expense. It anticipated that cash on hand as of June 30 will be sufficient to fund operations for the next two years, based on current outlook, but it’s still seeking to get Pre-Gen testing covered by Medicare.

3. Caliper Life Sciences Inc.

68 Elm Street, Hopkinton 01748

508-435-9500

www.caliperls.com

Founded: 1995

President/CEO: Kevin Hrusovsky

Founder: No

Caliper Life Sciences, Inc. develops liquid handling, automation, and LabChip microfluidic technology that automates and standardizes many laboratory procedures. It’s a successor to Zymark Corp., which Caliper acquired in July 2003, moving its California headquarters to Massachusetts. Caliper changed its name from Caliper Technologies Corp. to Caliper Life Sciences, Inc. in January 2004, and the Zymark legal entity was merged into Caliper in April 2004, and Zymark’s CEO, Kevin Hrusovsky, became CEO of Caliper.

Caliper has been on a growth track this year, acquiring NovaScreen Biosciences Corp. of Hanover, MD. Novascreen provides screening, profiling and test development services for pharmaceutical and biotech companies and for the National Institutes of Health. The recalls of several blockbuster drugs this year could increase the demand for Caliper’s and Novascreen’s technology, which reveals the molecular interactions of drugs, allowing scientists to see possible side effects of proposed drugs.

4. Commonwealth National Bank

33 Waldo Street, Worcester 01608

508-752-4800

www.commonwealthworcester.com

Founded: 2001

CEO: Charles Valade

Founder: Co-founder

Commonwealth National Bank is a nationally chartered bank operating

primarily in Worcester County. It operates from its main office and one branch office in Worcester,

Massachusetts, a branch office in Shrewsbury, Massachusetts and a branch office in

Northbridge, and provides loans, deposits and other banking services to commercial, individual and public sector clients.

The year 2004 marked a full calendar year of profitability for this fast-growing bank, which opened its doors shortly after September 11, 2001 when the economy was staggering. Its assets have more than doubled over the three years measured in the Top Growth survey. Its loan base grew 40 percent during 2004 and total deposits reached $157 million at yearend, up 45 percent over the prior year. It’s still on a steep growth curve; by the end of the second quarter, assets reached $229 million, up 33 percent over the rolling 12-month period, and deposits stood at $181 million. Commonwealth is seeking to create a holding company, subject to regulatory approval, to support its growth and as a platform for other lines of business or acquisition.

5. American Superconductor Corp.

2 Technology Dr., Westboro 01581

508-836-4200

www.amsuper.com

Founded: 1987

President: Gregory Yurek

Founder: No

American Superconductor develops and markets high-temperature superconductor (HTS) wire for electric power, transportation, medical and industrial processing. It builds motors and generators based on its HTS wire for ship propulsion and industrial uses, HTS synchronous condensers to increase the reliability of transmission and distribution of electricity on power networks, and advanced power electronics to secure and improve capacity of the electrical power grid.

In fiscal 2005, which ended March 31, American Superconductor continued on its multi-year growth trajectory, with significant revenue increases in each of its 3 divisions. SuperMachines saw a 17 percent increase; AMSC Wire grew 48 percent, and Power Electronic Systems rose 123 percent.

AMSC’s movement to bring products to market has been supported through direct sales, joint ventures, military contracts and distribution agreements. Among the most notable: its strategic alliance in early 2005 with global power systems company Siemens AG to develop the commercialization of AMSC’s second-generation high-temperature wire. Additionally, the company recently obtained three new government contracts valued at $1.35 million for second-generation high-temperature superconductor wire and applications development with the Department of Defense; and a distribution agreement also this month with Tsukuba, Japan-based Suzuki Shokan Co. Ltd. to sell superconductors in the growing Japanese market.

6. Boston Scientific Corp.

One Boston Scientific Place, Natick 01760

508-650-8000

www.bostonscientific.com

Founded: 1979

President: James Tobin

Founder: No

Boston Scientific Corporation is a worldwide developer, manufacturer and marketer of medical devices with applications in cardiology, vascular surgery, electrophysiology, neurovascular use, oncology, endoscopy, urology, gynecology and neuromodulation.

Most of what we hear about Boston Scientific in the news is related to its Taxus arterial stent, which in 2004 captured significant market share against Johnson & Johnson’s Cypher stent. Approved in March 2004, the stent has racked up 1.95 billion in sales as of third-quarter 2005. Early in the year, Boston Scientific provided a three-year guidance outlook for analysts and investors which, excluding special items and the impact of new accounting rules on stock options, calls for $6.4-$6.7 billion in sales for 2005, $6.9 to $7.5 billion for 2006, and $7.7 billion to $8.9 billion, with stent sales comprising more than a third of the total.

7. Arrhythmia Research Inc.

25 Sawyer Passway, Fitchburg 01420

978-345-5000

www.arthrt.com

Founded: 1981

President and CEO: James Rouse

Founder: No

Arrhythmia Research develops and licenses medical software that measures the electrical impulses of the heart to detect and aid in the treatment of potentially lethal arrhythmias, or irregular heartbeats. But it gets most of its revenue - and the growth that put it on the Top Growth Companies list - from its wholly-owned subsidiary, Micron Products Inc., which makes related products such as silver-plated and non-silver-plated resin sensors, and distributes metal snaps used in the manifacture of disposable electrodes for electrocardiography, electro-encephalography, and other related applications. A division within Micron makes custom injection-molded products for medical, electronic, industrial and consumer applications.

Revenues in 2004 for the combined entities were the highest in the company’s history, due to what President and CEO James Rouse described in a statement as "continued significant organic unit volume growth" in Micron’s resin sensor lines, but it also includes results from the May 2004 acquisition of New England Molders, which accounted for 46 percent of the revenue increase and 33 percent of the increase in net income.

In 2005 the growth continued, though the company found it necessary to speed up the consolidation of New England Molders’ operations into those of Micron, and by March, sales and profits had improved, the company says. By second quarter, sales increases were offset by higher selling costs due to the addition of sales and business development staff, but the company expressed optimism that the sales and business development efforts would further increase revenues. Third-quarter results were not available at press time.

8. Moldflow Corp.

430 Boston Post Rd., Wayland 01778

508-358-5848

www.moldflow.com

Founded: 1978

President: Roland Thomas

Founder: No

Moldflow develops software and hardware for the automation of plastics-focused manufacturing, which help manufacturers around the world improve their design-to-manufacture process. Its original product is computer-aided software simulates how a mold fills; it has since gotten into the plantwide monitoring business.

The company has just come off a strong growth year (its fiscal year ends June 30), buoyed by strong sales in Asia. Its growth is also supported by the acquisition, in January 2004, of Moorpark, CAbased American MSI in a deal valued at about $12 million in cash and stock. The acquisition was a significant one for Moldflow, which split its operations into two segments. Despite its having only 42 employees at the time of the sale, American MSI had more than 3,000 customers and more than 8,000 installations, mostly in the U.S. The impetus behind American MSI’s growth was a growing trend among original equipment manufacturers and large suppliers to expect more design work from lower on the plastics industry supply chain, so the company is attracting more small plastics molders as customers.

But even without American MSI, Moldflow had a strong year; fourth quarter revenue growth for ‘04 and ‘05 was comparable, even without the revenue from the acquired company.

9. Cytyc Corp.

250 Campus Drive, Marlboro 01752

978-263-8000

www.cytyc.com

Founded: 1987

President and CEO: Patrick Sullivan

Founder: No

Cytyc Corp. designs, develops, manufactures, and markets innovative and clinically effective products for women’s health applications, including cervical cancer screening, breast cancer risk assessment, and treatment of excessive menstrual bleeding.

Cytyc had a record-breaking 2004. Early that year, the company acquired Novacept and made it into a surgical products division called Cytyc Surgical Products, and the new entity racked up $100 million in revenues in its first year. The company’s flagship product, the ThinPrep Pap test, also broke volume and revenue records. Its ThinPrep Imaging System also got rapid acceptance and use in the marketplace.

Cytyc has gone on to establish higher achievements through third-quarter 2005. Early this year, it acquired Proxima Therapeutics Inc., and added the MammoSite Radiation Therapy System to its surgical products division. In the third quarter, the FDA approved two supplementary uses for the ThinPrep Pap test, expanding its applications in the detection of cervical cancer.

10. Cognex Corp.

One Vision Drive, Natick 01760

508-650-3000

www.cognex.com

Founded: 1981

President and CEO: Robert Shillman

Founder: Yes

Cognex designs, develops, manufactures, and markets machine vision systems, or computers that can "see," which are used to automate a wide range of manufacturing processes where vision is required.

The company has come out of the high-tech slump of 2001-2003. Third quarter revenues for ‘05 are up 5 percent over those of the same quarter a year ago despite a 40 percent falloff in sales to customers who make capital equipment for semiconductors and electronics. Net margin improved, the result of the acquisition of DVT Corp. in May 2005, and revenue increased in Cognex’ three primary markets. As of the beginning of October, Cognex had nearly $313 million in cash and investments, and no debt.