“Orem, Utah-based Caldera Systems makes and markets a
Linux-based operating systems, Linux-based business servers,
development tools and other business services. Its OpenLinux line
of products and services goes up against products from competitors
such as Red Hat and VA Linux Systems.“
“Notable: Caldera Systems was the latest of what had been a
red-hot category in the market for initial public offerings. But
after a couple of huge debuts last year, the Linux category has
cooled as investors ponder the profitability of an open software
system.
“CBS.MW: You’re a classic case of an IPO popping and then
dropping. Your stock is now trading below its offering price. What
happened?”
“Love: I would disagree (with the notion that) we’re a classic
IPO that popped and dropped. We came out at a very reasonable
valuation, and then the market itself went through a major
correction. You can’t attribute that to a lack of confidence in our
company. Unlike others that popped — you’re seeing a dramatic
slide with them. Ours is just a good, solid opportunity, and we’re
seeing a correction. We’ll be back on our feet without any problem
at all. We’ve held our value better than any company in our
space.”