Caldera Trims Outlook; Cuts Jobs

By Peter Galli  |  Posted 2002-05-08 Print this article Print

Caldera International Inc. on Wednesday lowered revenue expectations for the second quarter and announced a layoff of 73 employees, or 15 percent of its global workforce.

Caldera International Inc. on Wednesday lowered revenue expectations for the second quarter and announced a layoff of 73 employees, or 15 percent of its global workforce. In addition, as part of an executive reorganization, Calderas chief technology officer, Drew Spencer, and chief legal counsel, Harrison Colter, have left the firm but "will continue consulting with the company on a part-time basis," the company said in a statement released following the close of the financial markets.
Reg Broughton, the companys senior vice president of services and operating systems, will assume responsibilities for the companys global operations, officials said.
Caldera, which provides Linux and Unix business solutions to small-to-medium businesses, said it now expects to report revenue in the range of $15.1 to $15.5 million for the second quarter ended April 30, 2002. This is down from projections made at the end of the first quarter for expected revenue to be between $16.0 and $18.0 million. Caldera, based in Lindon, Utah, said continued economic weakness and a slower than anticipated increase in IT spending contributed to the revenue shortfall. While customers are continuing to expand their operations, they were doing so at a far slower pace than in past years. The company will also be streamline operations by closing offices in Chelmsford, Mass. and Erlangen, Germany, but would retain its German operations in Munich and Frankfurt. "The restructuring is another step to help the company realize its goal of achieving profitability and is expected to save the company $7.0 million on an annual basis. After this reduction, the company will have a total staff of approximately 400 employees," Ransom Love, the chairman and CEO of Caldera International, said in a statement. Revenue outlook for the upcoming quarter will be updated when the second quarter results are announced on May 29, company officials said.
Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


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