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Strategies & Market Trends : Angels of Alchemy -- Ignore unavailable to you. Want to Upgrade?

To: ColtonGang who wrote (9648)	8/24/2000 9:21:27 AM
From: ColtonGang	Respond to of 24256

VA Linux (LNUX: news, msgs) charged 7 7/8, or 21 percent higher, to 45. The company said late Wednesday that it lost 10 cents a share in its fiscal fourth quarter, compared with average analyst expectations of a loss of 15 cents a share, according to First Call. Revenue surged 547 percent over the year-earlier period to $50.7 million. WR. Hambrecht followed by upgrading the company to a "strong buy," a placed a $60 price target on the shares. Analyst Prakesh Patel believes that the stock trades at a "significant discount" to its peers. ................................ DJ VA Linux 4Q Growth Fueled By Andover.Net Acquisition 23 Aug 23:18 By Pat Maio Of DOW JONES NEWSWIRES LOS ANGELES (Dow Jones)--VA Linux Systems Inc. (LNUX) said Wednesday that it beat fourth quarter Street estimates by 5 cents a share because of its recent $342 million acquisition of Andover.Net. VA Linux provides Linux software and services as a competing operating system to software giant Microsoft Corp.'s (MSFT) Windows program. "We only got Andover for part of the quarter. It will be an even more significant contributor to revenue when we have it for our first full quarter," said Larry Augustin, president and chief executive officer of VA Linux, in a phone interview with Dow Jones News. On Wednesday, the company reported a fourth quarter loss of $4.1 million, excluding non-cash items, or 10 cents a share, on revenues of $50.7 million. The excluded non-cash items consist of the write-off of research and development; amortization of goodwill and intangible assets; amortization of deferred stock compensation; and amortization of compensation expenses related to acquisitions. Wall Street had expected a loss of 15 cents a share, according to a survey of six analysts by First Call/Thomson Financial. Including the non-cash items, Va Linux reported a loss of $1.15 a share in the just-ended quarter, compared with a loss of $1.17 a share in the year-ago fourth quarter. For the year ended July 28, the company reported a loss of $89.8 million, or $3.52 a share, on revenue of $120.3 million, compared with a loss of $14.5 million, or $2.62 a share, on revenue of $17.7 million in the previous year. On June 7, the company bought Andover.Net, which sells online tools, news and digests for computer programmers and also runs Web sites dedicated to Linux, a free computer operating system. Todd Schull, VA Linux's chief financial officer, said the Sunnvyale, Calif.-based company plans to revise upward its revenue estimates for its current fiscal year, principally because of the acquisition. "We expect, in fiscal 2001, to have 2.5 to 2.75 times our fiscal 2000 revenues," which translates into a revenue target of $300 million to $330 million, said Schull in a conference call with analysts Wednesday. Schull also said that he expects the company to become profitable by the end of 2001. To get there, VA Linux will tap cash on hand - estimated at $176 million - to grow its sales force internationally and possibly acquire more companies. VA Linux went public in December 1999. The company also raised its revenue projections because of its Build-to-Order Software Selector, or BOSS, and recently unveiled Open Source Development Network, Augustin said. BOSS enables online customization of the operating system and applications ordered by VA Linux customers. The software also allows customers to choose specific software components they want pre-installed at the factory and delivered on their services - all via the Internet.