Lineo has wooed three new executives from better-established
companies in its effort to hasten the adoption of Linux in non-PC computing
Lineo hired Richard Larsen, formerly in charge of software sales at Sun
Microsystems, to lead the Linux company's entire sales operation. Larsen,
with 22 years in the industry and seven at Sun, will help build a more
seasoned executive team for the purveyor of Linux and other software for
"embedded" computing devices, such as network equipment, set-top boxes or
It's not the only change in the San Jose, Calif.-based sales division of the
Lindon, Utah, company, which filed to hold an initial public
offering. Lineo also hired John Mezinko to be vice president of American
sales and Paul Ray to lead worldwide product sales.
Mezinko worked for Lineo competitor Integrated Systems, which in turn was
acquired by Wind River. Ray worked for Integrated Systems, Epilogue
Technology and other embedded software companies.
Sales will be important for Lineo as it tries to go public at a time when
investors are less forgiving of business plans that take a long time to
In a Securities and Exchange Commission
filing Friday, Lineo said it had pro forma revenue of $4.9 million for the
nine months ended July 31. That compares with $1.4 million for the same
nine-month period the year before.
The net loss for the nine-month period was $16.4 million, compared with
$1.4 million for the same period the year before.
Lineo competes with several embedded Linux companies, including Red Hat,
MontaVista Software and LynuxWorks. Motorola is one of several major Lineo investors.
Lineo plans to trade on the Nasdaq market under the ticker symbol "LNEO."
Credit Suisse First Boston is the lead underwriter, with Lehman Brothers,
Dain Rauscher Wessels and Wit SoundView also participating.
Three large customers--Sun Microsystems, Brooktrout and Symbol
Technologies--accounted for 48 percent of Lineo's revenue for fiscal
1999. That customer base expanded in the nine months ended July 31, with
DaiShin providing 18 percent of the company's revenue.