Feeds

Lindows preps $57m IPO

Hurdles to growth

  • alert
  • submit to reddit

The Power of One Infographic

Linux distributor Lindows has filed with the Securities and Exchange Commission to raise $57.5m from an initial public offering, despite being in existence for less than three years. Its short lifespan makes it harder for investors to judge its position, but some hurdles to future growth are already apparent.

Lindows has not yet named a date for the potential IPO, but intends to list on the Nasdaq National with the symbol LINE.

The California-based desktop Linux specialist was founded in July 2001 and shipped its first product in January 2002, making it difficult for potential investors to perform analysis of its financial figures filed with the SEC.

The company had revenue of $2.1m in 2003, up from just $63,131 in 2002 and managed to reduce its net loss to $4.1m for the full year ended 31 December, 2003, from $6.7m in 2002.

While it is heading in the right direction those are not the sort of figures that will inspire short-term confidence and the company admits it might have to raise additional capital in the future to guarantee long-term growth. It estimates that net proceeds from the offering, together with current cash and cash equivalents, will be sufficient to fund its operations for at least the next 24 months.

The company also warned that its distribution relationship with Japanese vendor Livedoor could also be placed in danger by Livedoor's recent acquisition of Japanese Linux distributor Turbolinux. The agreement with Livedoor brought in 11 per cent of Lindows' net revenue in 2003 and is only scheduled to remain in effect until August 2005.

A bigger challenge to the company's long-term growth could be its ongoing trademark battle with Microsoft. The company recently changed its international presence and product name to Linspire in response to claims by Microsoft that it was infringing its Windows trademark.

While it has successfully argued against an injunction in the US, Lindows has been less successful in Europe, prompting the change of name. The US case is currently postponed while Microsoft prepares to appeal the judge's ruling that the jury should consider whether the word "windows" is generic, based on the period between 1983 and 1985 before Microsoft released its products.

Source: ComputerWire/Datamonitor

Related stories

Novell eats own dog food, moves to Linux on desktop
Lindows throws in the tow - l
Judge OKs Microsoft Lin---s offensive
Lindows plans US gov backed global assault on Windows trademark
Wal-Mart and Sun share Linux desktop lust
MS legal case: Dash is 'dows, 'dows means Windows, which we own

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
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
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
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
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
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.