Blisenko, VA Linux Sees Disappointing Results
NEW YORK (Reuters) - VA Linux (news - web sites) Systems Inc., a developer of software and products for the Linux computer operating system, on Monday said its fiscal first-quarter results would fall short of expectations because of disappointing sales to Internet start-up companies.
The gloomy forecast sent VA Linux shares tumbling on the Nasdaq stock market. The shares were down $12, or 40 percent, at $18 in early trading.
Shares of Red Hat Inc. (NasdaqNM:RHAT - news), another distributor of the Linux operating system, were down $1-1/4, or more than 7 percent, at $15-3/4.
Fremont, Calif.-based VA Linux said it now anticipates a loss of 14 to 16 cents a share for the first quarter, excluding non-cash items, primarily due to disappointing revenues and increased spending based on more optimistic revenue expectations.
Wall Street analysts had been expecting VA Linux (NasdaqNM:LNUX - news) to report a loss of 9 cents per share, according to research firm First Call/Thomson Financial.
``Although repeat business with our existing customers remained strong during the first fiscal quarter, sales to new customers in the 'dot-com' sector were below our expectations,'' VA Linux Chief Executive Larry Augustin said in a statement. ''In particular, the number of new customer opportunities from venture-funded dot-coms declined faster than anticipated.''
The Linux operating system is a challenger to Microsoft Corp.'s (NasdaqNM:MSFT - news) Windows program. |
