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
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."