VA Linux to cut 25% of staff as Q2 loss widens

FREMONT: VA Linux Systems Inc. on Tuesday posted a quarterly loss that

exceeded Wall Street's lowered forecasts, and said it would cut 25 per cent of

its work force in its drive to eventually turn a profit.

The Fremont, Calif.-based company, which develops software and products for

the Linux computer operating system, said that it recorded a pro forma net loss

for its fiscal second quarter of $13.4 million, compared with a loss of $6.3

million.

The results excluded acquisition costs and other expenses. Wall Street had

expected the company to lose 26 cents per share, according to First Call/Thomson

Financial, which calculates the average of analysts surveyed. Revenues for its

fiscal second quarter more than doubled to $42.5 million from $20.2 million a

year earlier, the company said.

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