Lindows Preps for IPO Despite Setbacks
The developer of a Linux-based OS files registration papers for a public offering that could raise as much as $57.5 million, while battling legal challenges and continued financial losses.Lindows Inc., fresh from changing the name of its flagship product, is preparing to go public as it struggles to earn a profit. The San Diego-based company on Tuesday filed an initial public offering registration with the Securities and Exchange Commission. The company did not pinpoint a date for the IPO but announced that it will conduct an auction-based stock offering process that is being co-managed by WR Hambrecht + Co. and Roth Capital Partners LLC. Lindows IPO plans follows operating losses every year since its founding in July 2001. For the year ended Dec. 31, 2003, Lindows lost $4.08 million on revenues of $2.07 million, according to its S-1 filing with the SEC.
The company is embroiled in legal struggles both in the United States and overseas with Microsoft Corp., which has accused Lindows of infringing on its Windows trademark. Lindows had sold its Linux-based operating system under its company name, but last week changed the product name to Linspire.
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