Proof that not all Linux distributions offer immediate success right off the bat, Turbo Linux seems to have been able to turn things around and become quite profitable thanks to overseas government contracts. While Linux is still catching on here in the US, China and India have really started to latch on to it.

Turbolinux achieved profitability in Japan and China for the first time last year and is now looking to expand its operations in India, its chief financial officer said Wednesday.

Established during the Linux boom of the late nineties, the company had lost money each year until last year. The improved performance was due to changes in the software environment and perception of Linux, and also changes in the company’s strategy, said Mitsunobu Okada, CFO at Turbolinux.

A push by several governments around the world, including those of Japan and China, to encourage the use of open-source software has helped the credibility of Linux, he said. Turbolinux has benefitted by winning contracts from the Chinese and Japanese governments.

In mid-2003, for example, it signed a contract with China’s Ministry of Railways to provide operating systems and applications for the organization’s package delivery system. Earlier in the year it announced two governmental organizations in Shanghai were using Turbolinux. In Japan, the company is working with a major corporation to roll out 300,000 Linux-based thin client systems over the next 5 years.

Such contracts helped raise the profile of Turbolinux which led to further sales. The company was also helped by validation of its platform by vendors including IBM and Toshiba (Profile, Products, Articles).