Feeds

TurboLinux follows Intel's investment with VC cash

$6 million injection to fund management, programming team expansion

  • alert
  • submit to reddit

Mobile application security vulnerability report

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. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.