LNUX up afterhours after reporting record revenues.....VA Linux Systems Reports Record Revenues
SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 23, 2000--VA Linux Systems, Inc. (Nasdaq: LNUX - news) today reported record revenues of $50.7 million for the fiscal fourth quarter ended July 28, 2000, an increase of 547% compared to the same period of fiscal 1999 and an increase of 46% compared to the prior fiscal quarter. VA Linux also reported a fourth quarter net loss, excluding non-cash items, of ($0.10) per share. This compares favorably to First Call consensus analyst estimates of ($0.15) per share and represents a significant improvement from ($0.34) per share in the fourth quarter of fiscal 1999 and ($0.13) in the prior fiscal quarter. Net loss per share, excluding non-cash items, improved sequentially in every quarter during fiscal 2000. (Per share loss amounts for historical quarters were calculated using pro-forma shares).
For the full fiscal year 2000, VA Linux revenues totaled $120.3 million, an increase of 579% over fiscal year 1999 revenues of $17.7 million.
``We have continued to demonstrate, quarter after quarter, strong revenue growth and improved financial results,'' said Dr. Larry M. Augustin, President and Chief Executive Officer. ``We improved our gross margins to 22% and reduced our net loss, excluding non-cash charges, to 8.1% of revenue. Our differentiation as a full solution provider of Linux and Open Source products became more visible this month with the launch of our Build-to-Order Software Selector (BOSS)(tm) and our launch of the Open Source Development Network (OSDN)(tm). It is gratifying to see the positive response our products and services have received in the Internet Infrastructure market.''
Other Notable Highlights
On June 7, VA Linux closed its acquisition of Andover.Net for shares of VA Linux common stock. The transaction was valued at approximately $342 million. Andover.Net's and VA Linux's web properties have been integrated and re-launched as the Open Source Development Network -- the leading Open Source destination on the Internet -- generating in excess of 80 million page views per month. OSDN will serve as the entry point for individuals and companies new to Open Source and a central resource for the development, distribution, and discussion of Open Source software. Compaq, EMC, Hewlett-Packard, Intel, IBM, and Sun, among others, have joined OSDN as technology partners.
On August 14, VA Linux announced its new Build-to-Order Software Selector (BOSS) enabling online customization of the operating system and applications ordered by VA Linux customers. BOSS from VA Linux is a unique, groundbreaking solution that makes it possible for customers to point, click, select and save the specific software components they want pre-installed at the factory and delivered on their servers -- all via the Web. BOSS is available on valinux.com and offers a selection of over 700 software packages -- an unprecedented level of online configurability -- with hundreds more expected to be offered in the coming months. By providing Build-to-Order Software, VA Linux Systems helps engineering and IT departments dramatically reduce the time and resources spent manually re-installing and re-configuring systems individually.
Additional Highlights for the Quarter:
Systems. During the fourth quarter, VA Linux expanded its product line -- the industry's broadest selection of 1U (1.75``) and 2U (3.5'') rackmount Linux servers -- to include the high-density VA Linux 9008 2U storage enclosure system. The 9008 storage system features eight hot-swappable SCSI disk drives in only two rack units of space. The 9008 extends VA's current storage options, and will be a component of larger network-attached storage products due out in the first quarter of fiscal 2001. Other new systems introduced during the fiscal fourth quarter included the VA Linux 1150, an entry-level 1U server, and the 2130, an entry-level 2U server -- two products that complement VA's high-performance Linux server offerings.
Professional Services. In June, VA Linux named Kyle Spencer, an EDS veteran, to the newly established position of General Manager of Worldwide Professional Services. VA Linux Professional Services continued to expand its service offerings in two key areas of expertise: Internet infrastructure services and Open Source software development and consulting. In July, VA Linux Professional Services and Hewlett-Packard hosted the world's first Open Source Printing Summit, bringing together more than ten vendors -- including HP, VA Linux, IBM, Sun, Canon, Epson, Lexmark, Okidata, Xerox and Microsoft -- and over fifteen Open Source projects for an historic industry event.
Partners. In May, the company launched the VA Linux Service Provider Program, a comprehensive initiative that enables Internet hosting providers and service providers to leverage VA's systems, services and expertise. Companies in the program include Exodus, SiteSmith and NonStopNet.
International. VA Linux recently opened new offices in France, Germany, the Netherlands, Switzerland and the United Kingdom. VA also plans to enter additional global markets during fiscal 2001.
SourceForge(tm). The cornerstone of OSDN, SourceForge is the world's largest Open Source software development center. Formally launched in January, VA Linux estimates that SourceForge now hosts over 76 percent of the world's known Open Source software, with 8,000 software projects and over 53,000 registered users. The number of software projects hosted on SourceForge increased by more than 21% during the last thirty days.
IA-64 Development. In May, VA Linux introduced the SourceForge IA-64 CompileFarm, offering developers access to Intel® Itanium(tm) processor prototype systems via the Web on a broad scale for the first time.
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