Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: EtTuBrute who wrote (78813)	2/24/2000 8:43:00 PM
From: puborectalis	Respond to of 108040

LNUX.....'There is a lot of the point-and-click crowd out there that saw the (net loss) of 50 cents and said, 'Oh they missed the number,''' said Walter Winnitzki, an analyst with Chase Hambrecht & Quist. ''The earnings were right where they should be...The quality of those sales is really good to see.'' In after-hours trading, VA Linux shares were trading at around 119 13/4, slipping from their closing price of 124 3/4, down 2 3/8 on the Nasdaq. The results were released after the regular U.S. trading ended. The stock had opened at 300 on its first day of trading after an IPO price of $30 a share. Revenues in the second quarter surged to $20.2 million from $3.17 million a year ago, as the company signed up new Internet companies as customers. ''We beat analysts' estimates on revenue, we beat estimates on gross margins and we were consistent with estimates for expenses,'' VA Linux founder and chief executive Larry Augustin said in a phone interview. ''Linux is growing fairly strong and we are growing faster than Linux.'' In the quarter, new customers accounted for 49 percent of total revenues, including companies such as NetLedger Inc., Vstream, Abba Technologies and Cnet Inc. VA said services accounted for 1.5 percent of revenues in the second quarter, up from 0.2 percent in the first quarter. Executives on the conference call said they expected services to represent about 5 percent of revenues in the third quarter, based on the current backlog of orders. ''Their services business is really starting to have momentum,'' Winnitzki said.