Caldera Systems Reports Fourth Quarter and Fiscal 2000 Results

40% Increase in Revenue Over Fiscal 1999 Launched

By Growth in Services and Education



Dec 06, 2000, 00:00 ET from Caldera Systems, Inc.

    OREM, Utah, Dec. 6 /PRNewswire/ -- Caldera Systems, Inc. (Nasdaq:   CALD), a
 "Linux for 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 ended October 31, 2000, revenue was $4.3 million compared to $3.1 million
 for the previous year, an increase of 40%.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001110/CALDLOGO )
     The primary growth in year-over-year revenue stems from services,
 education and training related revenue, which increased to $1.3 million in
 fiscal 2000 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 attributed
 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 fourth
 quarter of 2000 and $602,000 will be recorded in the first quarter of 2001)
 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.  "As
 we continue to focus our efforts on the successful integration with the two
 SCO divisions, we expect tremendous synergies to emerge from Linux and UNIX
 technologies."
 
     Fourth Quarter 2000 Company highlights include:
     --  Compaq chooses Caldera as its premier Linux and UNIX provider
     --  Certification of Oracle8i database on Caldera OpenLinux eServer 2.3
     --  First OpenLinux Solution Series courses are complete and available
         through OpenLearning Providers
     --  eServer 2.3 wins Network World's "Blue Ribbon Award" for use as
         enterprise server
     --  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 solution
 
     Fiscal 2000 Company highlights include:
     --  Definitive agreement to acquire The Santa Cruz Operations' Software
         Server and Professional Services Divisions
     --  IBM Chooses OpenLinux eServer as first Linux pre-load on IBM Netfinity
         servers
     --  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
         Show"
     --  OpenLinux eDesktop wins "Emperor Award" from Linux Magazine
     --  Caldera allies with IBM, SUN, SCO, Fujitsu, AST, Pervasive Computing,
         and Tripwire
     --  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(R)-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 Buy.com
     --  Adds Douglas Stewart, Inc., higher education distributor
     --  Established distribution in major markets in Asia/Pacific, Europe,
         Middle East, Africa (EMEA)
 
     Conference Call
     The Company will host a conference call at 5:00 p.m. EST today, December
 6, 2000, to discuss fourth quarter and fiscal year 2000 results.  To
 participate in the teleconference, please call (800) 289-0436, confirmation
 code 520715, 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
 www.calderasystems.com/conference.html.
 
     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 support and
 on-site consulting.  Caldera OpenLearning Providers offer exceptional
 distribution-neutral Linux training and certification based on Linux
 Professional Institute (LPI(TM)) certification standards.  Caldera Systems
 supports the open source community and is a leader in, and advocate of, Linux
 Standard Base (LSB(TM)) and LPI(TM).
     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 www.calderasystems.com or in 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 U.S.
 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 that 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 on
 developers in the open source community; new and changing technologies and
 customer acceptance of those technologies; the Company's ability to compete
 effectively with other companies; failure of our brand to achieve the broad
 recognition necessary to succeed; unenforceability of the GNU general public
 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 channel.  These and other
 factors, which could cause actual results to differ materially, are also
 discussed in the Company's filings with the Securities and Exchange
 Commission, including its recent filings on Form S-4.
 
 
                             CALDERA SYSTEMS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                                    October 31,  October 31,
                                                       2000          1999
                                                         (in thousands)
 
     Cash                                            $ 36,560       $  122
     Short-term investments                            54,179            -
     Accounts receivable, net                           1,545          670
     Inventories                                          390          169
     Other current assets                               1,310        1,909
       Total current assets                            93,984        2,870
 
     Property and equipment, net                        1,589          719
     Investments                                        5,179            -
     Equity investment in affiliate                     4,957            -
     Other assets                                       1,809          125
       Total assets                                  $107,518       $3,714
 
     Current liabilities                                5,304        2,192
     Other liabilities                                      -            6
     Stockholders' equity                             102,214        1,516
       Total liabilities and stockholders' equity    $107,518       $3,714
 
 
                             CALDERA SYSTEMS, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                      Three Months               Year
                                     Ended Oct. 31,          Ended Oct. 31,
                                    2000        1999        2000        1999
                                     (in thousands, except per share data)
     REVENUE:
       Net revenue                $ 1,172    $   874     $  4,274    $ 3,050
       Cost of revenue              1,158      1,272        4,021      2,926
         Gross margin                  14       (398)         253        124
 
     OPERATING EXPENSES:
       Sales and marketing          4,250      2,416       14,754      4,768
       Research and development     1,563        702        4,954      2,302
       General and administrative   1,940        568        6,430      1,748
       Non-recurring cost
        sharing charge                898          -          898          -
       Amortization of deferred
        compensation                1,215        385        5,216        409
       Total operating expenses     9,866      4,071       32,252      9,227
 
     LOSS FROM OPERATIONS          (9,852)    (4,469)     (31,999)    (9,103)
     EQUITY LOSS IN AFFILIATE        (387)         -         (387)         -
     OTHER INCOME (EXPENSE)         3,394         16        5,544       (229)
     LOSS BEFORE INCOME TAXES      (6,845)    (4,453)     (26,842)    (9,332)
     PROVISION FOR INCOME TAXES       (42)       (10)         (81)       (35)
     NET LOSS                      (6,887)    (4,463)     (26,923)    (9,367)
     DIVIDENDS RELATED TO
      CONVERTIBLE PREFERRED STOCK       -          -      (12,253)         -
     NET LOSS ATTRIBUTABLE
      TO COMMON STOCKHOLDERS      $(6,887)   $(4,463)    $(39,176)   $(9,367)
     BASIC AND DILUTED NET
      LOSS PER COMMON SHARE      $ (0.18)    $ (0.17)    $  (1.19)  $ (0.51)
     WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING           39,176     25,518       32,922     18,457
 
 

SOURCE Caldera Systems, Inc.
    OREM, Utah, Dec. 6 /PRNewswire/ -- Caldera Systems, Inc. (Nasdaq:   CALD), a
 "Linux for 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 ended October 31, 2000, revenue was $4.3 million compared to $3.1 million
 for the previous year, an increase of 40%.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001110/CALDLOGO )
     The primary growth in year-over-year revenue stems from services,
 education and training related revenue, which increased to $1.3 million in
 fiscal 2000 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 attributed
 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 fourth
 quarter of 2000 and $602,000 will be recorded in the first quarter of 2001)
 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.  "As
 we continue to focus our efforts on the successful integration with the two
 SCO divisions, we expect tremendous synergies to emerge from Linux and UNIX
 technologies."
 
     Fourth Quarter 2000 Company highlights include:
     --  Compaq chooses Caldera as its premier Linux and UNIX provider
     --  Certification of Oracle8i database on Caldera OpenLinux eServer 2.3
     --  First OpenLinux Solution Series courses are complete and available
         through OpenLearning Providers
     --  eServer 2.3 wins Network World's "Blue Ribbon Award" for use as
         enterprise server
     --  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 solution
 
     Fiscal 2000 Company highlights include:
     --  Definitive agreement to acquire The Santa Cruz Operations' Software
         Server and Professional Services Divisions
     --  IBM Chooses OpenLinux eServer as first Linux pre-load on IBM Netfinity
         servers
     --  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
         Show"
     --  OpenLinux eDesktop wins "Emperor Award" from Linux Magazine
     --  Caldera allies with IBM, SUN, SCO, Fujitsu, AST, Pervasive Computing,
         and Tripwire
     --  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(R)-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 Buy.com
     --  Adds Douglas Stewart, Inc., higher education distributor
     --  Established distribution in major markets in Asia/Pacific, Europe,
         Middle East, Africa (EMEA)
 
     Conference Call
     The Company will host a conference call at 5:00 p.m. EST today, December
 6, 2000, to discuss fourth quarter and fiscal year 2000 results.  To
 participate in the teleconference, please call (800) 289-0436, confirmation
 code 520715, 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
 www.calderasystems.com/conference.html.
 
     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 support and
 on-site consulting.  Caldera OpenLearning Providers offer exceptional
 distribution-neutral Linux training and certification based on Linux
 Professional Institute (LPI(TM)) certification standards.  Caldera Systems
 supports the open source community and is a leader in, and advocate of, Linux
 Standard Base (LSB(TM)) and LPI(TM).
     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 www.calderasystems.com or in 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 U.S.
 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 that 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 on
 developers in the open source community; new and changing technologies and
 customer acceptance of those technologies; the Company's ability to compete
 effectively with other companies; failure of our brand to achieve the broad
 recognition necessary to succeed; unenforceability of the GNU general public
 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 channel.  These and other
 factors, which could cause actual results to differ materially, are also
 discussed in the Company's filings with the Securities and Exchange
 Commission, including its recent filings on Form S-4.
 
 
                             CALDERA SYSTEMS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                                    October 31,  October 31,
                                                       2000          1999
                                                         (in thousands)
 
     Cash                                            $ 36,560       $  122
     Short-term investments                            54,179            -
     Accounts receivable, net                           1,545          670
     Inventories                                          390          169
     Other current assets                               1,310        1,909
       Total current assets                            93,984        2,870
 
     Property and equipment, net                        1,589          719
     Investments                                        5,179            -
     Equity investment in affiliate                     4,957            -
     Other assets                                       1,809          125
       Total assets                                  $107,518       $3,714
 
     Current liabilities                                5,304        2,192
     Other liabilities                                      -            6
     Stockholders' equity                             102,214        1,516
       Total liabilities and stockholders' equity    $107,518       $3,714
 
 
                             CALDERA SYSTEMS, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                      Three Months               Year
                                     Ended Oct. 31,          Ended Oct. 31,
                                    2000        1999        2000        1999
                                     (in thousands, except per share data)
     REVENUE:
       Net revenue                $ 1,172    $   874     $  4,274    $ 3,050
       Cost of revenue              1,158      1,272        4,021      2,926
         Gross margin                  14       (398)         253        124
 
     OPERATING EXPENSES:
       Sales and marketing          4,250      2,416       14,754      4,768
       Research and development     1,563        702        4,954      2,302
       General and administrative   1,940        568        6,430      1,748
       Non-recurring cost
        sharing charge                898          -          898          -
       Amortization of deferred
        compensation                1,215        385        5,216        409
       Total operating expenses     9,866      4,071       32,252      9,227
 
     LOSS FROM OPERATIONS          (9,852)    (4,469)     (31,999)    (9,103)
     EQUITY LOSS IN AFFILIATE        (387)         -         (387)         -
     OTHER INCOME (EXPENSE)         3,394         16        5,544       (229)
     LOSS BEFORE INCOME TAXES      (6,845)    (4,453)     (26,842)    (9,332)
     PROVISION FOR INCOME TAXES       (42)       (10)         (81)       (35)
     NET LOSS                      (6,887)    (4,463)     (26,923)    (9,367)
     DIVIDENDS RELATED TO
      CONVERTIBLE PREFERRED STOCK       -          -      (12,253)         -
     NET LOSS ATTRIBUTABLE
      TO COMMON STOCKHOLDERS      $(6,887)   $(4,463)    $(39,176)   $(9,367)
     BASIC AND DILUTED NET
      LOSS PER COMMON SHARE      $ (0.18)    $ (0.17)    $  (1.19)  $ (0.51)
     WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING           39,176     25,518       32,922     18,457
 
 SOURCE  Caldera Systems, Inc.