The Top 10 Hot Growth Companies
9
Kanbay International
As initial public offerings go, Google was the biggie in 2004. But Kanbay International quietly hit the market with its own impressive offering as well. Last July the Rosemont (Ill.) tech-outsourcing company went public at $13 a share and soared to $31.53 by yearend. Its market value has dipped since then -- closing at $17.23 on May 23 -- as enthusiasm over offshoring waned.
But Kanbay's growth has continued its remarkable ascent. Revenue in 2004 hit $182.6 million, a 70% increase over 2003, on net income that more than doubled to $27.4 million. Its bang-up numbers make Kanbay one of the few in the outsourcing biz that's growing fast while also maintaining profitability.
The ace in its pocket: Kanbay focuses on the financial-services industry, and it has a cozy relationship with British financial-services giant HSBC Holdings (HBC). HSBC accounted for 55% of Kanbay's 2004 revenue. Still, Kanbay officials aren't stopping there. They're now expanding the company's customer base by targeting additional clients that can contribute $5 million or more in annual revenue. After adding 15 such clients in 2004, analysts are expecting 21 this year. That could mean even bigger numbers ahead.
Company Info
| STOCK INFO | KBAY |
| Market Value* | $ 593.2 MILLION |
| Total Return* | (1-yr.) NA
(3-yr.) NA |
| 2004 sales | $ 182.6 MILLION |
| Sales Growth | (1-yr.) 70.4%
(3-yr.) 37.1% |
| Net income* | $ 27.4 MILLION |
| Net Income Growth | (1-yr.) 139.1%
(3-yr.) 138.2% |
| Net Margin* | 15.2% |
| Return on Equity* | 21.0% |
| Return on Invested Capital* | 21.0% |
| Industry | SOFTWARE & SERVICES |
| CORPORATE WEB SITE | |
*Trailing 12 months
Company data as of 4/29/05
provided by Standard & Poor's Compustat
The 100 Best Small Companies
Company Snapshot
Kanbay International Inc. provides information-technology services and to the financial-services industry. It offers a suite of services, such as business-process and technology advisory services; software package selection and integration; application development, maintenance, and support; network and system security; and specialized services. Kanbay provides its services primarily to credit service companies, including bank card and retail card issuers, payment processors, and technology vendors; banking institutions; capital market firms; and insurance companies in North America, Asia-Pacific, and Europe.
Kanby was founded in 1989 and is headquartered in Rosemont, Ill. It acquired Accurum Inc. in March, 2005.
No. of Employees
3,708
Data provided by 
