Bigger is not always better. Rapid growth does not always bring profits. In fact, rapid growth can take its toll on a corporation's financial strength.
Among the top 10 on The Times Growth 100 are two companies that lost money in their 1987 fiscal years; in fact, eight of the 100 companies posted red ink last year.
The reasons for the losses vary. For instance, Comarco, an Orange County defense contractor, had difficulties accommodating acquisitions it made in previous years. And Kaypro, a San Diego computer maker, was forced to take writeoffs because its laptop model sold poorly.
New World Entertainment, whose financial condition has steadily declined in the past several months, took the second spot on the Growth 100 with a 90% annual average growth rate from 1985 to 1987. However, the company lost nearly $18.5 million last year, when virtually all of its intended markets soured. Its debt load, taken on to finance a move into kiddie cartoon shows and prime-time television, remained burdensome.