Feeds

TurboLinux follows Intel's investment with VC cash

$6 million injection to fund management, programming team expansion

  • alert
  • submit to reddit

Seven Steps to Software Security

Linux distributor TurboLinux yesterday scored a $5.5 million investment from US venture capitalist August Capital, along with around $500,000 from investment bank Broadview. The deals follow Intel's investment in the company, made last week. TurboLinux (formerly known as Pacific HiTech) said it will use the cash injection to fund expansion: it intends to grow its senior management team and to hire more programming staff. Unlike Linux distribution rivals Red Hat and Caldera (rivals in the sense that they're all pursuing profit through markets associated with the open source OS, rather than the OS itself), TurboLinux is focusing on the high end of the market where it can add value to the basic OS through proprietary, commercial products rather than the provision of support services. For example, TurboLinux's upcoming site management software will costs users $995 for a two-machine licence, or $1995 for an unlimited licence. So far, that plan appears to be working -- TurboLinux claims to be in profit, something that neither Red Hat nor Caldera can boast. And analysts and investors agree that, if TurboLinux retains its focus, its revenues and earnings will continue to grow. As a privately-held company, TurboLinux's books are closed to scrutiny, but the company VP Lonn Johnston told US newswires the company's revenue is close to that of Red Hat -- ie. around the $7.2 million mark. Of course, how long TurboLinux remains privately-owned is another matter. With IPOs now well established as any IT company's route to second-stage financing, it will be hard for TurboLinux's management to resist the temptation, especially since its profit-making status could push the company's stock rather higher than that of loss-making (though better known, in the US at least) rivals like Red Hat. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.