VA Linux (LNUX) was down 20.6% but still off its intraday low of $2.38.

The company said late Wednesday it was exiting the hardware business to concentrate on Linux operating system applications, eliminating 153 jobs or 35% of its workforce.

The company said revenue would "significantly decline" as a result of the strategy, which would reduce operating expenses.

The company posted much wider third-quarter loss last month compared to a year ago on revenue that dropped 41%. Analysts said at that time that the company's cash burn rate would not allow it to reach its goal of profitability by October 2002.

More from Technology

Netflix Shares Hit All-Time High as Market Flounders

Netflix Shares Hit All-Time High as Market Flounders

Retirees Should Avoid These 7 Stocks

Retirees Should Avoid These 7 Stocks

10 Stocks Goldman Sachs Thinks Will Crush the S&P 500's Performance in 2019

10 Stocks Goldman Sachs Thinks Will Crush the S&P 500's Performance in 2019

Snap Shares Plunge After Cowen Cuts Price Target

Snap Shares Plunge After Cowen Cuts Price Target

FANG Stocks Get Swept Up in Broader Market Selloff

FANG Stocks Get Swept Up in Broader Market Selloff