RealTime IT News

Marimba Expects to Cut 2Q Loss

E-business solutions company Marimba Inc. named a new CEO and said that its second quarter pro forma net loss is expected to be 9 to 11 cents a share, rather than the 18 cents per share expected by a consensus of Wall Street analysts.

Revenues are expected to be approximately $12.2 million, up 11 percent from the prior quarter, said the Mountain View, Calif.-based company.

Meanwhile, the company named Rich Wyckoff as president and chief executive officer, succeeding John Olsen, who, Marimba said, resigned those posts "to pursue other interests."

Wyckoff, 41, has been Marimba's senior vice president of marketing since joining the company in September 2000. Before that he was senior vice president of marketing at Zland Inc.

The company's stock was up 46 cents or 17 percent on the news in the early going today, to $3.16. Its 52-week high is $27; the low, $1.87.

On the financial front, the company said that including a non-cash charge of $527,000 for deferred stock compensation and a restructuring charge of $789,000 related to its workforce reduction and other cost cutting initiatives announced in April, diluted net loss per share for the second quarter is expected to be in the range of 15 to 17 cents.

In April the company let 60 employees and independent contractors go and began a number of cost-cutting initiatives, including the cancellation of some marketing programs, suspension of executive cash bonuses, reduction of executive salaries, and the discontinuation of Marimba.net, the company's MSP (managed service provider) Division.

There was no immediate explanation beyond the boiler plate on Olsen's resignation.

"We are pleased with our preliminary revenue results, especially given the difficult global economic environment," said Wyckoff. "I believe strongly in the growth prospects of the company, and feel we are well positioned for the future."

Marimba's systems management solutions include its Castanet and Timbale products, part of its change management solution; its newest solution is the performance management product family, which is designed for customers who need to monitor the performance of their e-business applications and services.