“VA Linux Systems today reported record revenue of $56.1
million for the fiscal first quarter, 2001, ended October 27, 2000,
an increase of 278% compared to the same period of fiscal 2000 and
an increase of 11% compared to the prior fiscal quarter. VA
Linux also reported a fourth quarter net loss, excluding non-cash
items, of ($0.15) per share, an improvement from ($0.27) per share
in the first quarter of fiscal 2000. These revenue and EPS results
are in line with indications provided in the Company’s press
release dated November 6, 2000. A conference call to review the
results for the first fiscal quarter will held at 2:00 p.m. PST.
The call may be accessed by dialing (800) 230-1074 (access code
543537) or via live Webcast at http://www.valinux.com. The
conference call will also be available for replay at (800) 475-6701
(access code 543537).”
“While top and bottom-line results did not meet our expectations
for the quarter, we remain optimistic about our prospects for
growth in the future. We remain committed to profitability,
excluding non-cash charges, no later than the end of calendar 2001
and we anticipate revenue for fiscal 2001 to be approximately 2.25
times fiscal 2000 revenue,” said Dr. Larry M. Augustin, president
and CEO, VA Linux Systems. “Our recent new product and service
introductions continue to differentiate us as the leading provider
of complete Linux solutions, leveraging our Linux expertise through
systems, professional services and the Web. In addition, we expect
our initiatives to broaden the customer base to position us for
further success in the future.”