The San Diego, California-based company has confirmed that it is set to change its corporate name to Linspire following the settlement of a trademark infringement case with Microsoft Corp but is pushing ahead with the IPO after just three years in business.

Lindows/Linspire has not yet put a date on the offering but now says it will offer 4.4 million shares at between $9 and $11, raising between $39.6m and $48.4m, rather than the $57.5m it originally expected in April.

While the proposed IPO will raise less than expected, the company will have more funds available following its $20m settlement with Microsoft. Lindows intends to use some of the funds from the settlement to clear a debt of $10.4m owed to its founder and CEO, Michael Robertson.

The repayment of this debt was originally to be taken out of any IPO proceeds. Now the company has said it will invest between $4m and $11m in expanding sales and marketing activities, between $4m and $8m in research and development, while between $10m and $20m will be reserved for working capital, general corporate purposes and potential acquisitions.

With Lindows having only been in existence since July 2001 it is difficult for potential investors to perform analysis of its financial figures filed with the SEC. The company had revenue of $2.1m in 2003, up from just $63,131 in 2002 but managed to reduce its net loss to $4.1m for the full year ended December 31, 2003, from $6.7m in 2002.