news

[Kevin O'Gorman]

On Thu, May 09, 2002 at 02:48:50PM -0400, Jay Nugent wrote:
> Greetings,
> 
> On Thu, 9 May 2002, dep wrote:
> 
> > http://computerworld.com/softwaretopics/os/linux/story/0%2C10801%2C71003%2C00.html?nlid=AM
> 
>    Gee... $15 Million in revenue is a "Bad Thing"(tm)???  Not the $18
> Million they expected.  What sort of P/E does the $15 mil represent?  I
> would have to say that is GOOD news in light of the number of Linux
> distributions that tanked in the last 12 months.

I'm afraid this comment displays a lack of understanding.  $18M wasn't
profit, but income.  They lost money, which means they spent more than
the $18M in the same time period.  That's negative earnings, which makes
P/E meaningless.  If you want, you can look at Price/Sales ratios, but
that also would miss the concern that these folks have lost touch with
their economic realities.

>    And I'm not at all suprised to hear they are cutting costs and letting
> go their Chief Technology officer.  They are long overdue to perform a bit
> of 'restructuring'...
> 
>       --- Jay

Maybe, but cutting the technology out of a technology company is rarely
the road to success.

++ kevin


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Kevin O'Gorman  (805) 650-6274  mailto:kevin at kosmanor.com
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