VA Linux Reports Bigger Loss in 2nd Quarter

VA Linux Systems Inc. said its loss deepened to $11.6 million, or 50 cents a share, in its fiscal second-quarter, although sales surged more than sixfold to $20.2 million from $3.2 million. VA Linux, which went public in December with a record-setting first day percentage stock price gain of almost 700%, has said expenses are rising as it hires more salespeople, bolsters the services organization and builds up its Internet site. The developer of computer systems, software and services that run on the upstart Linux operating system lost $1.8 million, or 44 cents, a year ago. VA Linux fell $2.38 to close at $124.75 on Nasdaq. They dropped as low as $115 on electronic networks after the release.