Today VA Linux announced that it beat analysts’ (and its own)
expectations by a penny on the share on losses of $19 million,
which gave its stock prices a lift on heavier-than-normal volume.
One analyst, however, said the company’s goal to reach
profitiability by 2002 could remain elusive. The losses represent a
four-fold increase over last year.
“One of the things we’ve been concerned about this
company was (whether) it’s running out of cash,” said Prakesh
Patel, an analyst for WR Hambrecht. “They only have $100 million
left.”Asked if the company could meet its stated goal of profitability
by the quarter ended October, 2002, Patel said, “Not at the
current burn rate” — the rate at which the company consumes cash
as it tries to get into the black.”
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