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CNET News.com: Linux leader [VA Linux] reports revenue growth but broader loss

Feb 25, 2000, 18:21 (0 Talkback[s])
(Other stories by Stephen Shankland)

"Revenues exceeded expectations for the company's second fiscal quarter, and the net loss was in line with predictions, said Walter Winnitzki of Chase Hambrecht & Quist. Nonetheless, the results caused confusion on Wall Street because of unusual charges, differing methods used by analysts to calculate VA Linux's outstanding shares, and the fact that VA went public during the middle of the quarter. Unlike Winnitzki, some believed that VA had deeper than expected losses."

" 'I'm very pleased (with) the sales momentum and the quality of the numbers,' said Winnitzki, who had anticipated revenues of $16 million. 'The net income number, when you factor out all the other stuff, was pretty much in line with expectations.' "

"VA was successful in attracting new customers, moving to a model with no inventory and beginning a planned shift toward selling services as well as hardware, he added. ... What is clear is that sales rose. Revenues grew 576 percent over the same quarter the year before, when the company garnered $3.2 million. ... A total of 49 percent of the revenue came from new customers, Augustin said."

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