Linux hardware specialist VA Linux Systems saw revenues rise 705 per cent during its third quarter, which ended 28 April. The snag: the company's loss grew too - by 506 per cent.

For the three-month period, revenues grew to $34.6 million from the $4.3 million, the company recorded this time last year. Its loss, meanwhile, swelled from $3.4 million to $20.6 million - 13 cents a share - over the same period.

The good news for VA is that both margins are on its way up - from 14 per cent last quarter to 17.3 per cent in Q3 - and the loss before one-charges fell from $6.3 million in Q2 to $4.5 million this time round. Sales from lucrative service accounts rose from 1.5 per cent of revenue last quarter to 4.2 per cent.

VA's president and CEO, Larry Augustin, told The Register last month that the company's gameplan is to hit breakeven next year, and at this rate, assuming it reigns in those one-off charges, there's no reason why it shouldn't do meet that target. ®