RealTime IT News

Caldera Hits IT Slowdown Head-On

UNIX and Linux software specialist Caldera International Inc., running head-on into the IT spending slowdown, lowered its guidance, laid off 15 percent of the staff, shut some offices and said its CTO is leaving.

The Lindon, Utah-based company's stock was trading at about $1 today, down from a 52-week high of more than $10 a share.

"Recognizing the difficult worldwide IT market conditions and Caldera's commitment to profitability, we believe that this is a necessary step to protect shareholder value in Caldera," said Ransom Love, chairman and CEO.

Caldera now expects to report revenue in the range of $15.1 million to $15.5 million for its second fiscal quarter ended April 30. That's down from earlier guidance predicting of $16 million to $18 million.

Customers are continuing to expand their operations, but at a much slower pace than in past years, the company said.

The restructuring includes laying off about 75 people across the board, leaving the operation with a workforce of about 400. Caldera also said that the company's chief technology officer Drew Spencer and chief legal counsel Harrison Colter are leaving.

The company plans to streamline operations by closing offices in Chelmsford, Mass., and Erlangen, Germany. Caldera will continue its German operations in Munich and Frankfurt. The restructuring is expected to save the company $7 million on an annual basis.

For the three months ended Jan. 31, Caldera's revenues totaled $17.9 million. Net loss rose 12 percent to $11 million. Caldera took in $40.4 million its last fiscal year and lost $9.90 a share. It has never made any money, according to Multex Investor data.