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.