VA Linux Systems Updates Financial Outlook
Apr 26, 2001, 22:30 (11 Talkback[s])
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VA Linux has announced that its expected revenue for its third
fiscal quarter will likely be in the range of $18 to $20 million.
In February, the company announced it expected revenues to be
"below $30 million."
According to the announcement, the company continues to have
problems selling hardware, but says there are indications that
demand is increasing for its web content/conferencing services
(Open Source Development Network) and consulting business.
From the press release:
VA Linux Systems (NASDAQ:LNUX) today announced that it expects
revenue for its third fiscal quarter, ending April 28, 2001, to be
in the range of $18 to $20 million. This is an update of the
outlook provided during VA's February 20, 2001 conference call,
when the Company indicated a revenue expectation for the quarter of
below $30 million.
The net loss for the quarter, on a pro forma basis, excluding
non-cash and non-recurring charges, is expected to be in the range
of $0.39 to $0.41 per share. As previously indicated, the Company
will record an extraordinary restructuring charge in the quarter to
reflect the costs of headcount reductions and other restructuring
activities taken earlier in the quarter in response to the economic
While we are seeing some signs that demand is improving for our
consulting services and Open Source Development Network, the
slowdown in customer IT purchasing continues to impact systems
sales," said VA Linux Systems CEO Larry M. Augustin. "Earlier this
quarter, we took significant measures to address the current
economic slowdown, including cost-cutting actions and improvements
to our management structure. We are progressing towards our
previously stated staffing and spending reduction goals. These
steps and our strong cash position will allow us to weather the
current cycle, so we can capitalize on increasing demand for Linux
and Open Source solutions as the economy improves."
Actual results will be announced on May 22, 2001, after the
market closes, followed by a 2:00 pm (Pacific) conference call.
- LA Times: Wall St. on Edge Over Probe of IPO Practices(Apr 22, 2001)
- theDeal.com: Milberg Weiss likely to lead [VA] Linux litigation(Apr 21, 2001)
- Forbes.com: VA Linux chief still sees profitability by Oct. 2002
(Apr 03, 2001)
- theStreet.com: Shareholders Sue VA Linux As IPO Practices Are Called Into Question(Mar 26, 2001)
- Is VA Linux developing a dual-Athlon 1U server with AMD?(Mar 26, 2001)
- fc.com: Augustin E-Mail Outlines Organizational Changes, Identifies Areas of Focus for VA Linux(Feb 21, 2001)
- Eric S. Raymond: When Times Get Hard [Notes on VA Linux and the Tech Downturn](Feb 21, 2001)
- VA Linux to Cut Quarter of Workforce
(Feb 20, 2001)
- Upside/Reuters: VA Linux cuts staff; loss bigger than expected(Feb 20, 2001)
- Enterprise Linux Today: VA Linux Systems Reports Results for Second Fiscal Quarter, 2001(Feb 20, 2001)