Originally Published MX November/December 2005

COVER STORY

Like all executives, ArthroCare president and CEO Michael A. Baker enjoys happy investor conference calls. And, thanks to conservative revenue guidance and a careful acquisition strategy, the company has hosted an ongoing string of such calls over the past few years.

ArthroCare Corp. (Austin, TX) was founded in 1993, made its initial public offering in 1996, and has been growing ever since. Since the late 1990s, the company has reported average year-over-year revenue growth of more than 25%, which in 2002 earned it a spot on Fortune magazine's annual list of the 100 fastest-growing companies.

Share price for ArthroCare Corp., from October 2003 through October 2005, versus the S&P 500 index. (click to enlarge)