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40% Increase in Revenue Over Fiscal 1999 Launched by Growth in Services

OREM, UT - December 6, 2000 - Caldera Systems, Inc. (Nasdaq: CALD), a "Linux
Business" leader, today reported revenue of $1.2 million for the three
months ended October 31, 2000, a 34% increase over revenue of $874,000 for
the comparable three months of the previous fiscal year. For the year
October 31, 2000, revenue was $4.3 million compared to $3.1 million for
previous year, an increase of 40%.

The primary growth in year-over-year revenue stems from services,
and training related revenue, which increased to $1.3 million in fiscal
from $277,000 in fiscal 1999.

The Company reported a net loss attributed to common stockholders for the
three months ended October 31, 2000 of $6.9 million, or $0.18 per common
share, compared with $4.5 million, or $0.17 per common share, for the
comparable three months of the previous fiscal year. The net loss
to common stockholders for the year ended October 31, 2000 was $39.2
million, or $1.19 per common share, compared to $9.4 million, or $0.51 per
common share, for the year ended October 31, 1999.

Excluding the effects of a non-recurring cost-sharing charge to The Santa
Cruz Operation of $1.5 million (of which $898,000 was recorded in the
quarter of 2000 and $602,000 will be recorded in the first quarter of
and a gain from the sale of Electronic Linux Marketplace assets of $2.3
million, the net loss to common shareholders would have been $0.21 per
common share for the fourth quarter of 2000.

"Increases in the global sales of existing products and services indicate
the rising demand for - and confidence in - Caldera OpenLinux products and
services," said Ransom Love, president and CEO of Caldera Systems, Inc.
we continue to focus our efforts on the successful integration with the
SCO divisions, we expect tremendous synergies to emerge from Linux and

Fourth Quarter 2000 Company highlights include:

- Compaq chooses Caldera as its premier Linux and UNIX provider

- Certification of Oracle8i database on Caldera OpenLinux eServer


* First OpenLinux Solution Series courses are complete and available
OpenLearning Providers

* eServer 2.3 wins Network World's "Blue Ribbon Award" for use as

* OpenLinux eDesktop 2.4 wins CNET "Editors' Choice Award"

* Caldera receives highest rating among all Linux distributions in
VARBusiness 2000 Annual Report Card

* Successful Open Beta Testing of Caldera Volution, a new Linux management

Fiscal 2000 Company highlights include:

* Definitive agreement to acquire The Santa Cruz Operations' Software
and Professional Services Divisions

* IBM Chooses OpenLinux eServer as first Linux pre-load on IBM Netfinity

* OpenLinux wins Linux Journal's "Product of the Year"

* OpenLinux awarded Internetweek's "Best of the Best"

* OpenLinux awarded "Best Distribution of the Millennium" by "The Linux

* OpenLinux eDesktop wins "Emperor Award" from Linux Magazine

* Caldera allies with IBM, SUN, SCO, Fujitsu, AST, Pervasive Computing,

* Caldera signs license agreement with Citrix

* Caldera signs agreement with SCO professional services

* Caldera signs agreement with IBM to ship WebSphere in OpenLinux eBuilder

* Caldera ships first Linux desktop product for the Internet: OpenLinux
eDesktop 2.4. eDesktop ships with Citrix ICA Client, Moneydance personal
finance manager, Webmin remote browser-based utility, pre-configured ISP
access numbers, key Internet browsers and plug-ins

* OpenLinux eBuilder ships enabling open, scalable, Java(-based eCommerce
solutions using IBM WebSphere(tm) and Evergreen ECential(tm)

* Sale of 5,750,000 shares of the Company's common stock resulted in a net
capital infusion of $74.9 million

* Adds retail outlets Costco, Staples and

* Adds Douglas Stewart, Inc., higher education distributor

* Established distribution in major markets in Asia/Pacific, Europe,
East, Africa (EMEA )

Conference Call

The Company will host a conference call at 5:00 p.m. EST today, December
2000, to discuss fourth quarter and fiscal year 2000 results. To
in the teleconference, please call (800) 289-0436, confirmation code
approximately five minutes prior to the time stated above. A listen only
Webcast of the call will be broadcast live with a replay. The Webcast and
replay may be accessed from

Caldera Systems, Inc.

Caldera Systems, Inc. (Nasdaq: CALD) is a "Linux for Business" technology
leader in developing and marketing successful Linux-based business
solutions, including its award-winning OpenLinux, NetWare for Linux, Linux
technical training, certification and support-with free 30-day phone
and on-site consulting. Caldera OpenLearning Providers offer exceptional
distribution-neutral Linux training and certification based on Linux
Professional Institute (LPI() certification standards. Caldera Systems
supports the open source community and is a leader in, and advocate of,
Linux Standard Base (LSB() and LPI(.

Caldera, Inc. was co-founded in 1994 by Ransom Love. Caldera Systems,
Inc.was founded by Ransom Love in 1998 to develop Linux-based business
solutions. Based in Orem, UT, Caldera Systems has offices and 1000+
resellers worldwide. For more information, see or
the US call 888-GO-Linux (888-465-4689).

Caldera is a registered trademark of Caldera Systems, Inc. All other
products, services, companies, events and publications are trademarks,
registered trademarks or servicemarks of their respective owners in the
and/or other countries.

LINUX is a registered trademark of Linus Torvalds.
UNIX is a registered trademark of The Open Group.

Forward Looking Statements

The statements set forth above include forward-looking statements that
involve risks and uncertainties. The Company wishes to advise readers
a number of important factors could cause actual results to differ
materially from those in the forward-looking statements. Those factors
include the failure of the products described above to operate as designed
due to incompatibility with some platforms or other defects; our reliance
developers in the open source community; new and changing technologies and
customer acceptance of those technologies; the Company's ability to
effectively with other companies; failure of our brand to achieve the
recognition necessary to succeed; unenforceability of the GNU general
license; our reliance on third party developers of components of our
software offerings; claims of infringement of third-party intellectual
property rights; and disruption in the Company's distribution sales
These and other factors, which could cause actual results to differ
materially, are also discussed in the Company's filings with the
and Exchange Commission, including its recent filings on Form S-4.

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