Editing Caldera International (section)

=== Investments and IPO ===
[[Image:Caldera Systems office interior in Orem Utah January 2001.jpg|thumb|left|Workplaces and offices within the Caldera Systems headquarters]]

Caldera Systems had not been profitable; for the company's 1998 fiscal year, ending on October 31, it had a loss of $7.9 million on revenue of $1.05 million, and for its 1999 fiscal year, it had a loss of $9.3 million on revenue of $3.05 million.<ref name="cnbc-ipo">{{cite news |url=http://plotkin.com/cnbcs113/ |title=Caldera Systems IPO Soars in Debut |author-first=Hal |author-last=Plotkin |publisher=CNBC |date=March 21, 2000}}</ref>
However, the industry saw promise in Linux as a solution for businesses, and in the latter half of 1999 a "Linux hysteria" had erupted in the stock market, with first Red Hat in August 1999 and then [[Cobalt Networks]] and [[VA Linux]] in November and December 1999 having experienced huge jumps in value during their first day each of trading.<ref name="ecomm-ipo"/>

On January 10, 2000, three things happened, all of which were coincidental.<ref name="deseret-schechter">{{cite news |url=https://www.deseret.com/2000/1/11/19485152/calderas-have-a-big-day-same-day-coincidentally |title=Calderas have a big day same day -- coincidentally |author-first=Jenifer K. |author-last=Nii |newspaper=Deseret News |date=January 11, 2000}}</ref>  
A settlement to the ''[[Caldera v. Microsoft]]'' suit over [[DR-DOS]] was announced, with Microsoft paying former parent company Caldera, Inc. an amount estimated at $275&nbsp;million<ref name="Gomes_2000_Settlement"/> (which turned out to be $280&nbsp;million).<ref>{{cite news | url=https://www.reuters.com/article/us-microsoft-novell/novell-wins-appeal-in-microsoft-antitrust-lawsuit-idUSTRE74301O20110504 | title=Novell wins appeal in Microsoft antitrust lawsuit | work=Reuters | date=May 3, 2011}}</ref>
Caldera Systems received a $30&nbsp;million private equity investment from a group of companies that included [[Sun Microsystems]], [[Novell]], [[Citrix]], [[Santa Cruz Operation]], [[Chicago Venture Partners]], and [[Egan-Managed Capital]],<ref name="reg-30m">{{cite news |url=https://www.theregister.co.uk/2000/01/11/sun_sco_novell_citrix_put/ |title=Sun, SCO, Novell, Citrix put bucks into Caldera |author-first=Graham |author-last=Lea |author-link=Graham Lea (journalist) |work=[[The Register]] |date=January 11, 2000}}</ref> with the goal to "fund operations and accelerate the growth and acceptance of Linux."<ref name="deseret-schechter"/>  Also, Caldera Systems announced that it would be filing to have an [[initial public offering]].<ref name="Gomes_2000_Settlement"/>  Ransom Love said that the Microsoft settlement would not benefit Caldera Systems other than that Caldera, Inc. would relinquish the name "Caldera",<ref name="deseret-schechter"/> which would address existing industry confusion between the two.<ref name="Gomes_2000_Settlement"/>  Reports at the time also indicated that the settlement would not directly benefit Caldera Systems,<ref>{{cite news | url=https://www.theregister.co.uk/2000/02/29/microsoft_and_caldera_dispelling/ | title=Microsoft and Caldera – dispelling the myths | author-first=Graham | author-last=Lea | work=The Register | date=February 29, 2000}}</ref> but that Caldera Systems could get an intangible benefit from a name association with a company that had bested an industry giant.<ref>{{cite news | url=https://www.deseret.com/2000/1/16/19486018/settlement-fuels-caldera-family-br-orem-company-is-settling-up-with-spinoffs-thriving | title=Settlement fuels Caldera 'family' Orem company is 'settling up' with spinoffs thriving | author-first=Lois M. | author-last=Collins | newspaper=Deseret News | date=January 16, 2000}}</ref>  Love also said that the timing between the funding round, work for which had begun six months earlier, and the IPO announcement was "unfortunate, and completely coincidental".<ref name="deseret-schechter"/>

Caldera Systems reincorporated in Delaware on March 6, 2000.<ref name="sec-10-k"/><!-- NB. A contract states 2 March 2000, see http://contracts.corporate.findlaw.com/formation/incorporation/5411.html -->
By this point it was well positioned in some respects, such as having a strong relationship with Sun and receiving good product reviews within the industry.<ref name="cnbc-ipo"/>  But it suffered from a lack of public awareness; as [[International Data Corporation|IDC]] analyst Dan Kusnetzky said, "They have a wonderful demo, and the product looks very good. But if you asked people on the street about Caldera they would probably think you are talking about a volcano in Hawaii."<ref name="cnbc-ipo"/>

The company then staged an IPO of its common stock, with the symbol CALD.<ref name="ecomm-ipo">{{cite news |url=https://www.ecommercetimes.com/story/2797.html | title=Caldera IPO Marks First Linux Disappointment |author-first=Matthew |author-last=Beale |work=E-Commerce Times |date=March 22, 2000}}</ref>  On the first day of trading, March 21, 2000, Caldera Systems' shares doubled in value, going from an initial price of $14 to close at $29 7/16,<ref name="bnbg-ipo">{{cite news |url=https://www.newspapers.com/image/428622118/?terms=%22caldera%2Bsystems%22 |title=Caldera shares double on 1st day |agency=Bloomberg News |newspaper=The Boston Globe |date=March 22, 2000 |page=D2}}</ref> with heavy trading been seen and an intra-day high of $33.<ref name="ecomm-ipo"/>
The IPO raised $70 million for the company and gave it a market capitalization of $1.1 billion.<ref name="bnbg-ipo"/>

While the launch was successful on its own terms, analysts saw signs that the Linux mania was finally cooling, abetted by Red Hat and VA Linux having seen their values steadily decrease since their spectacular starts.<ref name="bnbg-ipo"/><ref name="moody"/>  So, while some observers viewed the IPO as a success, others viewed it as a disappointment.<ref name="ecomm-ipo"/>  Red Hat continued to dominate in North America, with an over 50 percent share of the Linux market.<ref name="forbes-deal"/>