Chicago, IL, June 03, 2008 --(PR.com
)-- With most U.S. economic news bleak right now, the PCI/Gazelles Index reports that revenues of this broadly diverse group of private companies grew at significant rates in the month of April.
The PCI/Gazelles, a 10 company high-growth subset of the Entrex Private Company Index (PCI) measures monthly revenue performance of U.S. private companies up to $250 million. The PCI/Gazelles Index reading was up 12.8 percent in April (from month end March) closing almost two to three times higher than traditional Wall Street indicators like the DJIA, Nasdaq Composite Index and the S&P Small Cap 600 who saw April-over-March increases between 3 percent and 6 percent each.
Although the PCI/Gazelles group has only been tracked since January 2008, historical analysis reveals that the three public capital markets indicators saw increasing growth followed by stabilization during a three-year span of this April-over-March period. In 2006 the DJIA saw a gain while the Nasdaq Composite and S&P Small Cap 600 experienced a slight decline. In 2007 all three indicators showed growth similar to 2008, with increases between 3 percent and 6 percent.
Stephen H. Watkins, CEO of PCI Sponsor, Entrex, attributes this growth to businesses focused on their mission that have worked to develop lucrative niche markets for their products and services. These targeted sales channels appear to be supporting revenue levels through a general downturn in spending by businesses and individuals.
“Examples of such niche marketplaces include California based Indigenous Designs selling artisan sourced clothing with sustainable and socially responsible production methods, Maryland based Protech Associates selling contact management software customized for the membership association marketplace and Minnesota based Superior Industries designing and manufacturing conveyors and components for mining and farming clients.” Watkins explains.
Not every PCI/Gazelles company had revenue growth this period. Five of the ten companies reported April over March declines, the most extreme being a 47 percent drop from March revenues. Three of these companies attributed this to a typical seasonal drop in sales.