LINDON, Utah, May 8 /PRNewswire-FirstCall/ --
Caldera International, Inc. (Nasdaq: CALD), a leading provider of business
solutions to small-to-medium businesses, today announced that it expects to
report revenue in the range of $15.1 to $15.5 million for the second quarter
ended April 30, 2002. These latest projections modify earlier projections
announced at the end of the prior quarter that Caldera expected revenue to be
between $16.0 and $18.0 million. Caldera cited the continued economic
weakness and a slower than anticipated increase in IT spending that
contributed to the revenue shortfall. Customers are continuing to expand
their operations, but at a much slower pace than in past years.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010109/LATU087LOGO-a )
Caldera will provide updated information with regard to the upcoming
quarter's revenue outlook in a press release and conference call announcing
results for the second quarter on Wednesday, May 29, 2002.
Due to Caldera's revenue shortfall and the company's increased
efficiencies, Caldera also announced a 15 percent reduction in the company's
worldwide staff, or approximately 73 employees. The reduction will broadly
cover all functional and geographic areas of the company. After this
reduction, the company will have a total staff of approximately 400 employees.
The company plans to streamline operations by closing offices in
Chelmsford, Massachusetts and Erlangen, Germany. Caldera will continue 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.
"Recognizing the difficult worldwide I.T. 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 International. "Since the acquisition of the SCO Server division,
Caldera has eliminated $9.3 million or 42 percent in quarterly operating
expenses as we continue to drive to our profitable operating model."
In addition to the reduction in force, Caldera is also announcing the
departure of the company's chief technology officer, Drew Spencer, and Chief
Legal Counsel, Harrison Colter. Both Spencer and Colter will continue
consulting with the company on a part-time basis. Spencer joined Caldera in
1999 and has held several positions overseeing software development, research
and engineering. Colter joined Caldera in 2001 as Caldera's chief legal
As part of the executive reorganization, Reg Broughton, the company's
senior vice president over services and operating systems, will assume
responsibilities for the company's global operations. Broughton brings more
than 25 years of experience in executing sales, marketing and operational
excellence of public and private companies.
Caldera International, Inc.
Caldera International (Nasdaq: CALD) provides "Powerful Choices" for
businesses through its UNIX, Linux and Volution product lines and services.
Based in Lindon, UT, Caldera has representation in 82 countries and
16,000+ resellers worldwide. Caldera Global Services provides reliable
localized support and services to partners and customers. For more
information on Caldera products and services, visit http://www.caldera.com .
Caldera, the Caldera logos, Caldera Volution, OpenLinux, SCO and the
associated SCO logo, and SCO OpenServer are trademarks or registered
trademarks of Caldera International, Inc. in the U.S. and other countries.
Caldera Global Services is a service mark of Caldera International, Inc. UNIX
is a registered trademark of The Open Group in the United States and other
countries. Linux is a registered trademark of Linus Torvalds. All other
brand or product names are or may be trademarks of, and are used to identify
products or services of, their respective owners.
Forward Looking Statements
The statements set forth above include forward-looking statements that
involve risks and uncertainties. The Company wishes to advise readers that a
number of important factors could cause actual results to differ materially
from those in the forward-looking statements. These factors include the
ability of the Company to successfully meet its revenue projections, which are
based in part, on the continued acceptance in the marketplace of the
historical products of the acquired operations; the ability of the Company to
develop and successfully introduce products integrating its products and
services with those historically offered by the recently acquired operations;
the ability of the Company to continue to manage its cost reductions without
adversely affecting customer service and employee productivity; the ability of
recently introduced and new products to operate as designed, including
compatibility with various platforms in the absence of other defects; the
Company's reliance on developers in the open source community; new and
changing technologies and customer acceptance of those technologies; the
Company's ability to compete effectively with other companies; failure of our
brand to achieve the broad recognition necessary to succeed; unenforceability
of the GNU general public license and other Open Source licenses; our reliance
on third party developers of components of our software offerings; claims of
infringement of third-party intellectual property rights; and disruption in
the Company's distribution sales channel. These and other factors, which
could cause actual results to differ materially, are discussed in more detail
in the Company's filings with the Securities and Exchange Commission.
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SOURCE Caldera International, Inc.