BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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Packeteer (PKTR)

Packeteer enjoyed a surprising renaissance in 2005. The Cupertino (Calif.) company got off to a promising start in the late 1990s, largely thanks to "traffic shaping" that let customers control how much bandwidth to give to particular online activities -- so schools could dial back room for file-sharing of songs, for instance, allowing more for faculty members' e-mail. But then Packeteer was badly outmarketed, using similar technology to help companies speed connections with branch offices without busting the budget-buying T1 lines. Only in 2005, as rival outfits were acquired, did the 300-employee company emerge as the real leader, with 36% market share. Its bottom line went from a $71 million loss in 2001 to profits of $19.2 million in 2005. Trouble is, competitors continue to emerge, such as Riverbed Technology. As a result, JMP Securities expects Packeteer's sales growth to slow to 10% this year, from 22% in 2005, when revenues reached $112.9 million.

Company Info

2005 Rank

NR

Market Value*
($ Millions)

446.6

Sales*
($ Millions)

117.1

Sales Growth
(3-yr. avg. annual)

27.1 %

Profits*
($ Millions)

20.1

Profit Growth
(3-yr. avg. annual)

68.0 %

Return on Inv. Capital (3-yr.)

14.1 %

Share Price
12-Mo. Hi/Lo

16/7

Share Price
As of 4/28/06

13

Return on Equity

14.4 %

P/E Ratio

23

No. of Employees

304

Industry Communications Equipment
CURRENT
MARKET INFO

PKTR >

COMPANY WEB SITE >
Location Cupertino, Calif.
Phone 408 873-4400
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

Related Articles

CitiGroup Ups Packeteer to Buy from Hold


Company Snapshot

Packeteer along with its subsidiaries, provides wide area network (WAN) application optimization systems to deliver a set of visibility, control, compression, and protocol acceleration capabilities to enterprise customers and service providers. Its products include PacketShaper, which provides application traffic monitoring and enables service providers to create differentiated services through bandwidth provisioning and management; and Shaping Module for PacketShaper, a software option to provide application-based traffic and bandwidth management to deliver predictable performance for applications running over the WAN and Internet. The company offers Compression Module for PacketShaper, a software option to provide increased throughput for application traffic; and PolicyCenter, a directory-based policy management application that enables Packeteer's enterprise and service provider customers to centrally administer and update policies, software versions, and device status for Packeteer-based networks. It also provides ReportCenter, an application to aggregate metrics from large deployments and create organization-wide reports to manage trends and provide support for capacity planning and usage analysis; and SkyX Accelerator products to provide network and application acceleration over satellite and long-haul networks with Xpress Transport Protocol, or XTP, Web prefetch, and multicast content distribution capabilities. Packeteer sells its products through direct sales force, resellers, distributors, and system integrators in the Americas, Asia Pacific, Europe, Middle East, and Africa. The company was founded in 1996 and is headquartered in Cupertino, Calif.


Data provided by Capital IQ
 
Dave Côté

Dave Côté, 51

Chief Executive Officer, President and Director


Total Compensation*

$ 525,098

Total Options Value*

$ 2,320,970

* Fiscal Year 2005

DEGREES HELD
California State University - MBA, University of California - BS


Executive Bio

Dave Côté has served as president, CEO, and director of Packeteer since October, 2002. From April, 1997, to October, 2002, Côté served as vice-president of worldwide marketing and communication ASSPs (Application-Specific Standard Products) for Integrated Device Technology, a semiconductor company. From January, 1995, to November, 1996, Côté served as vice-president of marketing and customer support for ZeitNet, which was acquired by Cabletron in 1996. From 1979 to 1995, he served in various marketing and sales positions, most recently as director of marketing at SynOptics (now Nortel Networks). Côté holds an MBA from California State University at Sacramento and a BS from the University of California at Davis.


Management Team

Key Executives

C?t?, Dave;Greg Pappas; Nelu Mihai; David C. Yntema; Manuel R. Freitas; Ajmal Noorani; David Puglia; Arturo Cazares

Board Directors

Steven J. Campbell; Craig W. Elliott; Joseph A. Graziano; L. William Krause; Côté, Dave; Peter F. Van Camp; Bernard F. Mathaisel


Executive Data provided by Capital IQ