Feeds

TurboLinux follows Intel's investment with VC cash

$6 million injection to fund management, programming team expansion

  • alert
  • submit to reddit

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.