Lindows Cuts IPO Price Range

Since its first filing, however, the legal front has improved for Lindows. In July, the company reached an agreement with Microsoft(MSFT - Cramer's Take - Stockpickr) to change its name to Linspire by Sept. 14. That settlement ended 2 1/2 years of litigation that began when Microsoft sued Lindows, complaining its name was too similar to its flagship Windows product. Microsoft agreed to pay Lindows $20 million -- a drop in the bucket for the world's largest software maker -- in exchange for changing its name.

Lindows also became embroiled in a lawsuit with its insurance carrier over coverage of legal fees, which is still winding its way through court.

But Lindows still faces stiff competition from Microsoft, whose Windows franchise dominates the desktop market.

And in a note that doesn't bode well for the company on the financial front, Lindows' auditor, PricewaterhouseCoopers, said the company's recurring losses, negative working capital and accumulated deficit "raise substantial doubt about the company's ability to continue as a going concern."

For the quarter ending March 31, the company generated $1 million in revenue, more than three times the $311,673 in revenue posted a year earlier. But the company's net loss in the quarter grew to $1.6 million from $1.4 million a year earlier.