VA Linux Systems Reports Loss Narrowed

Software maker VA Linux Systems Inc. said its fiscal first-quarter loss narrowed as it exited the business of making computer hardware.

The company’s loss from continuing operations was $8.7 million, or 16 cents a share, compared with $7 million, or 15 cents, a year ago.

Revenue fell 90% to $5.6 million. Excluding residual revenue from the exited Linux hardware and related businesses, revenue was $3.9 million.

The Fremont, Calif.-based company said it expects revenue to continue declining in the second quarter, to $4 million to $4.5 million. VA Linux shares fell 26 cents to close at $2.39 on Nasdaq.