A bad day for Caldera
Linux and Unix software maker Caldera International Inc. spilled a dose of bad news on Wall Street Wednesday, announcing that it will miss second quarter revenue estimates, close two global offices, lay off staff and say goodbye to its chief technology officer (CTO).
A week following the close of its second quarter, Caldera now estimates that it will report revenue between US$15.1 million and $15.5 million for the quarter, nearly $3 million off projections given at the end of its first quarter when the company expected to bring in as much as $18 million.
Analysts estimated Caldera to report roughly $17 million in revenue and lose $0.28 per share, according to a consensus reported by Thomson Financial/First Call. Caldera, based in Lindon, Utah, is scheduled to report full second quarter earnings on May 29.
As the company continues to feel the pain of the IT spending downturn and the lack of demand for its desktop and server operating systems, the company also said that it will cut 15 percent of its worldwide workforce. Some 73 employees will lose their jobs from various regions and divisions of the company, leaving a total staff of about 400, the company said.
Along with its staff cuts, Caldera's CTO Drew Spencer, and Chief Legal Counsel Harrison Colter, announced that they will leave the company, staying on as part-time consultants. The company will not name a new full-time CTO.
Additionally, Caldera announced that it is closing its office in Chelmsford, Massachusetts, which it acquired when it purchased the technology assets of Acrylis Inc. It will also shutter its office in Erlangen, Germany, where much of its Linux development took place. The company said it will continue its German operations in Munich and Frankfurt. Those closures are expected to save the company $7 million annually, Caldera said.
Ransom Love, chairman and chief executive officer of Caldera International, blamed the bad news on "difficult worldwide IT market conditions" in a statement released after the close of market Tuesday.
Ahead of the news, shares of Caldera (CALD) gained $0.03, or 2.87 percent, to close the day at $1.04. The stock was unchanged in after-hours trading.
ITworld.com
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