"A very strong showing in the latest quarter by VA Linux Systems
(LNUX: Nasdaq), a hardware manufacturer that focuses on Linux-only
servers and systems, proves that the open-source market has legs.
VA Linux's turned in a fiscal fourth-quarter operating loss of 10
cents per share, compared with a First Call/Thomson Financial
consensus estimates for a loss of 15 cents a share. Quarterly
revenues climbed 547% year over year. Based on this performance,
several analysts said they believe VA Linux will break even sooner
than its stated goal for the fourth quarter of 2001."
"Based on the buzz around at last week's LinuxWorld tradeshow,
I'd say Red Hat is still the better play, because it is partnering
with hardware vendors who are not committed as totally to the Linux
operating system as VA Linux is. Red Hat is forging a business
that, while it depends on partners to do some of its packaging and
marketing, shares in the successes of those partners."
"With the potential for capital investment in Web systems
anticipated to at least double in the next two years, Linux
looks poised for major success. At least, those Linux companies
aiming at the server space are poised for growth. ... That said,
Linux is still a peripheral investment strategy full of risk. Your
Linux position should be only a small part of your total investment