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 : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (112357)	8/23/2000 9:02:43 PM
From: ColtonGang	Respond to of 120523

LNUX blows out revenues........ VA Linux beats estimates on revenue surge By Stephen Shankland Staff Writer, CNET News.com August 23, 2000, 2:40 p.m. PT VA Linux Systems surpassed analyst expectations today, reporting revenue of $50.7 million and a loss of 10 cents a share, a nickel better than analysts predicted. Analysts generally expected revenue between $42.7 million and $44.5 million, and those surveyed by First Call/Thomson Financial expected a loss of 15 cents a share. In the same quarter a year ago, VA had a net loss of 34 cents a share on revenue of $7.8 million. VA's net loss was $4.1 million, compared with $7.8 million the year before, the company said. The 10 cent loss excludes several items, including "write-off of in-process research and development, amortization of goodwill and intangible assets, amortization of compensation expense related to acquisitions, amortization of deferred stock compensation, and the dividend related to convertible preferred stock," VA said. ABN Amro analyst Keith Bachman and Credit Suisse First Boston analyst Amit Chopra both predicted next quarter's revenue would be about $65 million. "We see VA Linux continuing to exploit Linux's entry into new markets such as midrange servers and storage," Chopra said. WR Hambrecht analyst Prakesh Patel sees VA's profit margins increasing. Several acquisitions by VA "show the solid progress VA has made" in shifting its revenue stream to high-margin professional services, hardware and software integrated to work together. The company's products sell to Internet service providers, customers needing data storage and Internet infrastructure, and all high-growth markets. VA's results mean Linux companies have surpassed analyst expectations twice in two days. Linux seller Caldera yesterday reported a loss of 19 cents a share when analysts expected a loss of 25. Caldera, though, had revenues of $1.2 million, much less than VA's. Though VA's growth has been swift, it still faces formidable competition. Dell Computer, IBM and others have aggressive plans to sell Linux servers, but those companies have deep relationships with customers, resellers and suppliers. And Sun Microsystems, which sells its own Unix servers, is growing just as fast as VA, but its $5 billion in revenue last quarter is 100 times that of VA. VA has some features its bigger siblings lack. The company touts its Linux experience, of course, but also has a new build-to-order software system that lets customers choose in great detail what Linux software they want installed. In addition, they can save configurations for future purchases and features VA expects will help build repeat business. VA also competes with other Linux companies, such as Red Hat, Caldera, SuSE, TurboLinux, Atipa, Penguin Computing, SteelEye and Mission Critical Linux.