News

Troubled Caldera loses profits and staff

Linux and Unix software maker Caldera International has announced that it will miss second quarter revenue estimates, close two global offices, lay off staff and lose its chief technology officer.

A week after the close of its second quarter, Caldera has estimated that it will fall short by nearly $3m (£2m) to report revenue between $15.1m and $15.5m (£10.3m to £10.6m) for the quarter.

Analysts estimated Caldera to report roughly $17m (£11.6m) in revenue and lose 28 cents a share, according to a consensus reported by Thomson Financial/First Call. Caldera is scheduled to report full second quarter earnings on 29 May.

Caldera announced that it would also cut 15% of its worldwide workforce. Some 73 employees will lose their jobs from various regions and divisions of the company, leaving about 400 staff, the company said.

The company's CTO, Drew Spencer, and chief legal counsel Harrison Colter announced that they would leave the company, staying on as part-time consultants. Caldera does not intend to replace Spencer.

Caldera is closing offices in Massachusetts, and in Germany, where much of its Linux development took place. It will, however, continue its German operations in Munich and Frankfurt. Those closures are expected to save the company $7m (£4.8m) a year.

Ransom Love, chairman and chief executive officer of Caldera International, blamed the bad news on "difficult worldwide IT market conditions" in a statement released on Tuesday.

Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy