“VA Linux Systems, Inc. (Nasdaq: LNUX) today reported record
revenues of $50.7 million for the fiscal fourth quarter ended July
28, 2000, an increase of 547% compared to the same period of
fiscal 1999 and an increase of 46% compared to the prior fiscal
quarter. VA Linux also reported a fourth quarter net loss,
excluding non-cash items, of ($0.10) per share. This compares
favorably to First Call consensus analyst estimates of ($0.15) per
share and represents a significant improvement from ($0.34) per
share in the fourth quarter of fiscal 1999 and ($0.13) in the prior
fiscal quarter. Net loss per share, excluding non-cash items,
improved sequentially in every quarter during fiscal 2000. (Per
share loss amounts for historical quarters were calculated using
pro-forma shares).”
“For the full fiscal year 2000, VA Linux revenues totaled $120.3
million, an increase of 579% over fiscal year 1999 revenues of
$17.7 million.”
“We have continued to demonstrate, quarter after quarter, strong
revenue growth and improved financial results,” said Dr. Larry M.
Augustin, President and Chief Executive Officer. “We improved our
gross margins to 22% and reduced our net loss, excluding non-cash
charges, to 8.1% of revenue. Our differentiation as a full solution
provider of Linux and Open Source products became more visible this
month with the launch of our Build-to-Order Software Selector
(BOSS)(tm) and our launch of the Open Source Development Network
(OSDN)(tm). It is gratifying to see the positive response our
products and services have received in the Internet Infrastructure
market.”