OCP RATED NO. 1 FOR 2001 GROWTH BUSINESSWEEK IMPRESSED BY 161.9% RISE IN PROFITS.

Byline: Brent Hopkins Staff Writer

CHATSWORTH - As the tech sector twists in economic uncertainty, it pays to keep your eyes on Optical Communications Products Inc.

The high-tech firm, which manufactures fiber-optic components for computer networks, has managed to go against the grain, expanding nicely in recent years. Attractive numbers like its 161.9 percent increase in profits and 127.9 percent climb in sales since 1998 have drawn interest from growth-minded investors and now by one of the nation's largest business magazines.

With an eye on its continuing earnings potential, BusinessWeek magazine named OCP its No. 1 hot growth company of 2001 this week. Ixia, a Calabasas-based hardware developer, snared the No. 3 spot.

OCP experienced some rockiness earlier in the year, as its stock fell from the high $21 range in January to $5.62 in March. It remains fundamentally strong, however, according to Darnell Little, who wrote the report for BusinessWeek.

``With the phenomenal growth in previous years, it may look a little slow at the moment, but overall, they've really performed admirably,'' he said. ``They're riding it out fairly well.''

Shares of OCP gained $2.41 Tuesday, closing at $15.50.

President and Chief Executive Officer Tran Van Muoi proudly discussed his 10-year-old company, which went public last November. The firm has been able to grow itself so aggressively, he said, by selecting a lucrative niche - metro networks. Its components are used in these small, regional infrastructures, converting electronic data into high-speed optical transmissions, and it boasts clients such as Cisco, Alcatel and Flextronics.

``When we started in the infancy phase ... this sector didn't receive much attention, but we realized that there would be quite a bit of need,'' he said. ``We focused on it early in the game and introduced a number of industry firsts.''

``They're also selling into an area of the telecom market, that's still moving along fairly well,'' said Joseph Wolf, associate director for UBS Warburg. ``If you look at that, it's the next to be built up. As the market grows, OCP will benefit.''

Hence its position atop the prestigious list, which favored Southern California this year. Smaller firms, which can adapt more readily to changing economic conditions, performed particularly well.

``A lot of new tech firms can go out and joust for these rankings,'' said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. ``There's a heck of a lot of companies out there, so these have put together a pretty compelling story. People are looking at advanced technology and getting the idea that there are a lot of important things happening here in Los Angeles.''

Though the ranking is a nice feather in OCP's cap, the honor has been short-lived at times in the past. Friede Goldman Halter Inc., a Mississippi oil rig builder also ascended to the prestigious No. 1 slot in 1999.

It's now bankrupt.

When writing the article, Little made sure to look at broader trends, however, and predicted future successes for OCP.

``It's not just a snapshot of the company,'' he said. ``The market that the company is going after is a big growth industry. There's a lot of potential, and they have a great leadership position there.''

That's what Muoi's hoping for, betting that once the economy rights itself, OCP will catch fire once again.

``People are talking about this downturn that could last several quarters, but we believe that it'll turn around next year,'' he said. ``Most people in this segment believe that when the market gets back into high gear, things will turn out fine.''

HOT TICKETS

Area companies that made the hot 100 performers list published this week by BusinessWeek magazine, their ranking and headquarters.

1. Optical Communication Products, Chatsworth

3. Ixia, Calabasas

9. Skechers U.S.A., Manhattan Beach 

46. Semtech, Newbury Park

81. Tetra Tech, Inc., Pasadena

CAPTION(S):

photo, box

Photo:

(color) no caption (Cover of BusinessWeek magazine, ``HOT GROWTH COMPANIES'')

Box: Hot Tickets (see text)