Yahoo!/Reuters: VA Linux posts Q3 loss, revs down 41 pct.

May 22, 2001, 22:37 (6 Talkback[s])

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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