VA Linux Sinks 21.6% as Loss Widens

VA Linux

(LNUX)

was down 21.6% in early trading after hitting a 52-week low of $5.50. On Feb. 24 last year, the stock reached its high of $134.50.

After Tuesday's close the software maker posted a loss of 28 cents a share, missing the Street's 26 cent estimate. The company also said it would cut 25% of its staff and pushed back its profitability date nine months to October 2002.

J.P. Morgan Chase

downgraded the stock to market performer from long-term buy.

Credit Suisse First Boston

cut it to hold from buy and

Lehman Brothers

lowered its 2001 earnings estimate.