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Technology Stocks : VA Linux Systems Inc-(Nasdaq:LNUX) -- Ignore unavailable to you. Want to Upgrade?

To: ColtonGang who wrote (239)	10/5/2000 6:47:51 AM
From: ColtonGang	Read Replies (1) \| Respond to of 282

Bold assertions aside, Red Hat is in a very strong position, said WR Hambrecht analyst Prakesh Patel. "It's by far the best-branded open-source company out there," and Patel predicted it would beat Linux computer maker VA Linux Systems in the race to attain profitability. In particular, Patel lauded Red Hat's push to sell subscriptions to software update services. The new service, which is offered for servers, workstations and Linux-based Internet gadgets, could account for as much as half of Red Hat's revenue in six months, he predicted. Also at the conference, VA chief executive Larry Augustin said his company expects it will be profitable within 15 months. "We expect to reach breakeven no later than the end of calendar 2001," he said. Most of VA's revenues come from selling computers. In the long term, VA expects that to be 75 percent, with 15 percent from services, such as consulting to help companies plug into the open-source movement, and a further 10 percent from sponsorship and advertisements on VA's list of Web sites such as SourceForge.net, Linux.com or Slashdot.org. Augustin said the company's Web sites had 3 million unique users and 80 million page views in September. VA leads Linux companies in revenue, reporting $50.7 million in its most recent quarter. Red Hat had $18.5 million in revenue in its most recent quarter.