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TheStreet.com: Tuck Away That Tissue, Linux Investor [VA Linux Q4 results]

Aug 24, 2000, 00:34 (0 Talkback[s])
(Other stories by Tish Williams)

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"Oh dour, depressed Linux investor, happiness is at hand. VA Linux (LNUX:Nasdaq - news) unburdened the skeptical hearts of Wall Street Wednesday with 46% revenue growth to $50.7 million in its fiscal fourth quarter from its third quarter."

"Wall Street had hoped to see improved profit margins for the firm. Young Cobalt (COBT:Nasdaq - news), by comparison, has perky margins of 47%, while VA Linux's fiscal third-quarter margins were a cloudy 17.8%. Tuck away that Kleenex, downtrodden Linux investor, VA Linux offered up a sparkly gift-wrapped gross profit margin of 22% in the fiscal fourth quarter."

"...VA Linux held on to its customers for repeat business that brought in 80% of its revenue. No. 1 on the list of friends to invite to VA's next sleepover was Akamai, which accounted for 21% of that business. Server sales made up 75% of VA Linux's business, while a burgeoning professional services operation accounted for 15% of revenue, with the final 10% made up by Web-related revenue such as online advertising."

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