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FreeEDGAR: Linuxcare Inc. S-1 Filing

[ Although this is a preliminary filing, with many of the
blanks not filled in, there’s a lot of detail on Linuxcare’s plans
to launch their IPO. lt-ed. ]

“We are a recognized leader in providing services for Linux. We
offer a comprehensive range of services spanning the entire
software and hardware life cycle for Linux, leading open-source
software packages and related technologies. We offer services for
all leading distributions of Linux on major hardware platforms. We
help our customers choose the best Linux solution, integrate it
with their existing computing infrastructure and provide them with
ongoing support….”

“Since our inception, we have targeted our services toward large
business customers. We focus our sales and marketing efforts on
original equipment manufacturers, or OEMs, software vendors, Global
1000 companies and Internet infrastructure providers. As a result
of our early leadership in services for Linux, we have forged
strategic relationships with leading technology vendors including
Dell Computer, Hewlett-Packard, IBM Global Services, Motorola, NEC
Software, Oracle, Sun Microsystems and TurboLinux.”

“Our objective is to become the leading provider of
Linux-related services by:

. leveraging our alliances with leading OEMs and
software vendors that not only represent an opportunity to reach a
broad customer base, but are direct consumers of our services as
well;

. expanding our sales and marketing efforts towards Global 1000
companies and Internet infrastructure providers

. extending our technical leadership to maintain the high
quality of our services, increase the effectiveness of our
solutions and attract and retain world-class Linux experts;

. leveraging our advanced Internet-based infrastructure to
deliver the highest quality and most responsive services to our
customers;

. strengthening our brand; and

. continuing to promote the adoption and development of
Linux.”

We believe it is imperative for us to maintain a close
relationship with the open-source community. Therefore, we actively
support open-source initiatives, dedicating time and resources to
projects that improve the Linux operating system and related
applications. We also sponsor and participate in organizations that
foster the development and adoption of Linux.
We have
established goodwill in the Linux and open-source communities
through our active involvement, making us an attractive company for
Linux experts to join.”

Pro forma combined nine months ended September 30, 1999
“Statement of Operations Data:
Revenues…………………………………………….. $
518,111 Cost of
revenues……………………………………… 1,515,998
Gross margin………………………………………….
(997,887) Loss from operations
…………………………………. (10,443,563) Net loss
applicable to common stockholders………………. (10,643,341)
Basic and diluted net loss per share…………………….
(5.54) Weighted average shares used in computing pro forma basic
and diluted net loss per share
…………………………………………..
1,945,773”

“…Our future success depends, in part, on our ability to
identify, attract, retain and motivate highly skilled personnel. We
intend to hire a significant number of additional technical
professionals, leading Linux experts, and sales and marketing and
other personnel during fiscal 2000. Competition for these
individuals is intense, and we may not be able to attract,
assimilate or retain sufficient highly qualified personnel. Our
future success and ability to achieve our revenue growth also
depend upon the continued service of our executive officers and
other key marketing and support personnel. Competition for
qualified personnel in our industry and in the San Francisco Bay
Area, as well as the other geographic markets in which we recruit,
is extremely intense and characterized by rapidly increasing
salaries, which may increase our operating expenses or hinder our
ability to recruit qualified candidates.”


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