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.