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CNET News.com: Linuxcare plans to raise $56.6 million in IPO

Mar 03, 2000, 19:14 (0 Talkback[s])
(Other stories by Stephen Shankland)

"The latest Linux company with plans to go public, Linuxcare sells technical support, customization, education and other services. It's one of a handful of the most prominent Linux companies, along with Red Hat, VA Linux Systems, Caldera Systems, TurboLinux, SuSE and Corel."

"The company had pro forma revenues of $1.5 million for the year ended Dec. 31, with a net loss of $21.3 million, according to the filing. Because of aggressive expansion plans, which will cost $65 million this year, Linuxcare will remain unprofitable through 2001, the company said."

"A lack of profits has been a characteristic for Linux companies as well. VA Linux Systems, a Linux computer maker that went public in December and set the record for a first-day stock climb, doesn't expect to be profitable until the end of 2001 or beginning of 2002."

"Also like VA, Linuxcare is looking to expand its customer base so it's not as dependent on a small number of companies. The company said in the filing that more than half of its revenues in the last year came from three companies: 26 percent from Sun Microsystems, 18 percent from Motorola, and 11 percent from Silicon Graphics."

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