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

“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
, 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

“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

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