Caldera cuts projections, CTO resigns
Published: 09 May 2002 15:40 BST
Linux software developer Caldera International on Thursday reduced revenue projections for the second quarter, and said that two key executives are leaving and that Caldera will lay off 15 percent of its work force.
The reductions will affect about 73 employees, bringing Caldera's total workforce to around 400. The company said it would close its offices in Chelmsford, Massachusetts, and Erlangen, Germany.
Caldera said chief technology officer Drew Spencer and chief legal counsel Harrison Colter are both leaving the company, although they will continue on a part-time basis as consultants. Spencer has been with Caldera since 1999, overseeing software development, research and engineering. Colter joined the company last year.
The company said it now expects to report revenue of between $15.1m and $15.5m for the quarter ended April 30, down from previous predictions of between $16m and $18m. The Orem, Utah-based company cited economic weaknesses for the revision, adding that customers are continuing to expand their operations but at a much slower pace than in past years.
Losses have been building at the Caldera, one of the few publicly traded companies that specializes in Linux software. Caldera posted a loss of $11m on revenue of $17.9m for its fiscal first quarter.
In March, Caldera announced a 1-for-4 reverse stock split in an attempt to avoid being delisted from the Nasdaq market.
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