Net loss for the quarter, on a pro forma basis, excluding non-cash and non-recurring charges, was ($0.38) per share. In the same quarter last year the Company reported a pro forma loss per share of ($0.13). Revenue and net loss per share results were slightly better than indicated in the Company’s press release dated April 26.
VA Linux Systems also reported a non-recurring restructuring charge of $46.8 million in the quarter. $33.8 million related to the acceleration of deferred stock compensation amortization, $4.9 million of the charge represented cash expenditures and the balance was comprised of other non-cash charges. VA Linux Systems had approximately $100 million of cash and marketable securities at the end of the quarter.
The difficult current market environment has significantly impacted our financial results, said VA Linux Systems CEO Larry M. Augustin. The market is very challenging and the competitive environment is very aggressive. Our focus is on ensuring that we come out of this slowdown strong and well positioned to resume growth. We are balancing cost reductions and management structure improvements with the introduction of exciting new products and services. We have a strong cash position and are confident that we will successfully navigate the current business conditions.
SOURCE: COMPANY PRESS RELEASE
