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LinuxPR: VA Linux Systems Reports Record Quarterly Revenue; 278% Increase Over Year-ago Quarter

Nov 16, 2000, 22:56 (0 Talkback[s])

"VA Linux Systems, Inc. (Nasdaq: LNUX) 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."

"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."

"In September, the International Data Corporation (IDC) released its Worldwide Quarterly Server Tracker for calendar Q2 2000, ranking VA Linux second in the US, and third worldwide in Linux server market share, in terms of factory revenue. IDC's data shows that VA Linux grew its US revenue market share to 20% in calendar Q2 2000. From calendar Q1 to Q2 2000, the overall market for Linux servers grew by 54% in the US, sequentially."

Press Release