Network World

Where are they now?

We look back at 50 start-ups to watch, 1998-2003

By Beth Schultz , Network World , 04/21/2003

Click Here

On the Street

A number of our start-ups to watch have gone public over the past five years, but of those that did, only these four remain in business.

Akamai Technologies


	Selected in 1999.

	Content delivery network products.

	Reported a $203 million net loss for 2002, on revenue of $145 million, No. 125 on the NW200.

Update: A poster child for the Internet boom and bust. At its high, on Dec. 31, 1999, Akamai stock sold for $328 per share. In March, it traded for less than $2 per share. But Akamai's EdgeSuite CDN service for enterprise customers is selling well. At the end of the fourth quarter of 2002, Akamai had 270 EdgeSuite customers under recurring contract, compared to 243 at the end of the third quarter of 2002.

Covad Communications


	Selected in 1999.

	DSL services.

	Reported a $185 million net loss for 2002, on revenue of $384 million; not eligible for NW200 this year because it closed its books after our March 18 deadline.

Update: In January 1999, it was named the fastest-growing NW200 company. But Covad subsequently tumbled into bankruptcy, and back out (with a $150 million cash infusion from SBC in December 2001). New managers are focused on removing its bankruptcy stigma in part by strengthening its services portfolio. Covad stock remains troubled, however, in March, trading under $1.

Foundry Networks


	Selected in 1999.

	Ethernet switches, with a solid position in the Gigabit Ethernet market.

	Reported $23 million in net income for 2002, on revenue of $301 million ; No. 95 on the NW200.

Update: Posted its fourth consecutive year of profitability in 2002. In March, Foundry traded in the $8 range.

Red Hat Software


	Selected in 1999.

	Linux software.

	Reported a $ $140 million net loss for fiscal 2002, ended Feb. 28, 2002, on revenue of $79 million; No. 162 on the NW200

Update: Wooing the enterprise with products such as Red Hat Linux Advanced Server, released in May 2002; "unbreakable Linux," created with Advanced Server, Oracle91 database clusters and Dell PowerEdge servers; and an enterprise systems management framework under development. Red Hat stock has been trading in the $5.50-to-$6 range for most of the year.