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CNET News.com: TurboLinux layoffs another sign of cooling market

Jun 01, 2000, 02:00 (0 Talkback[s])
(Other stories by Stephen Shankland)

"A second Linux company has put the brakes on expansion and laid off staff, a further indication that investors no longer are as gung-ho on the comparatively new operating system."

"TurboLinux laid off an undisclosed number of employees today, citing demand by investors for more revenue and earlier profitability, president Paul Thomas said in an interview. He said the layoffs weren't as deep as those at troubled Linuxcare, which eliminated the jobs of about 70 employees in early May in the midst of a derailed initial public offering process."

"The rules have changed in the technology market. It used to be you could go public and it didn't matter whether you were profitable or what your revenues were," Thomas said. "What we saw was this is not the case any more."

"...While Linux has far from vanished, it's no longer assumed to be a guaranteed road to riches. Shares in Andover.Net and Caldera Systems are trading below their IPO prices."

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