VA Linux Systems on Wednesday reported a US$55 million net loss for the first fiscal quarter of 2002, with revenue of $5.6 million. The loss, $1.04 per share, occurred largely because of restructuring charges and compares to a $51 million dollar net loss, or $1.12 a share, on revenue of $56 million in the same period a year ago.
At that time, the company still sold servers. But in June, VA Linux dropped its Linux hardware business to cut financial losses.
In a statement issued yesterday, the Fremont, Calif.-based company, which is trying to reinvent itself as a software vendor, said it expects revenue for its second fiscal quarter to fall to between $4 million and $4.5 million, with a net loss from operations in the range of $8 million to $8.5 million.
VA Linux said that at the end of the first quarter it had $71 million in cash and marketable securities on hand.
"We were able to exit our Linux hardware and related businesses more quickly and with lower costs than we originally expected. Our expense levels and cash usage are down significantly," said VA Chairman and CEO Larry M. Augustin, in the statement.
"We have put a seasoned team in place around our SourceForge product and are pleased with the favorable response SourceForge Enterprise Edition 3.0 is receiving in the market. We see business conditions for us stabilizing, and expect to see continued declines in our cash usage combined with modest bottom line improvements over the remainder of this fiscal year."
In December, shareholders will vote on whether to rename the company VA Software Corp., deleting Linux from its name.