Cents and Sensibility - Kimberly and Friends' Consortium Message Board

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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium

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To: William who wrote (79383)	2/26/2000 1:12:00 AM
From: puborectalis	of 108040

From CBSMarket watch: Analysts remain upbeat on VA Linux Shares of VA Linux fell more than 9 percent Friday after the company missed Wall Street's target, but analysts remain upbeat on the stock as sales jumped more than 500 percent. Late Thursday, VA Linux Systems (LNUX: news, msgs) posted a loss of $7.5 million, or 23 cents a share in the second quarter. The analysts surveyed by First Call were expecting a loss of 21 cents. A year ago, the recently public company lost $1.8 million, or 26 cents. The stock fell 11 3/4 to 113 on Friday. However, second-quarter sales soared to $20.2 million from $3.2 million in last year's quarter amid a growing customer base and strong demand for its server products. The revenue data "handily" beat the $15.9 million estimate from Deutsche Ban Alex. Brown, and the 23-cent loss-per-share operating figure fell in line with the investment bank's estimate for the quarter. "We continue to believe that VA Linux is a leading provider of Linux-based products and services and the only public company that offers complete Linux solutions," analyst Philip Rueppel said in a research note. He raised his third-quarter revenue estimate to $23 million from $18 million and reiterated a "buy" rating on VA Linux's stock. Meanwhile, Walter Winnitzki of Hambrecht & Quist upgraded his fiscal year 2000 sales forecast to $84.7 million from $69.8 million based on the company's "current sales momentum." According to a research note, Winnitzki also widened his loss-per-share estimate for 2000 to $1.64 from $1.57 to offset VA Linux's "reinvestment to capture the upside in sales and to adjust the shares outstanding downward."

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