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More layoffs, losses at Caldera

How many, where job cuts coming are still up in the air

OREM — Software company Caldera Systems Inc., which in April laid off 32 employees, warned Thursday that more job cuts are coming.

Ransom Love, president and chief executive officer, presented the warning while announcing that the company posted a net loss of $18.8 million in the third quarter, which ended July 31.

The company has 618 workers, including 118 in Utah, but has not determined how many will be affected by the upcoming cuts, which will occur during the next month.

"The company expects to commence additional restructuring actions in the fourth quarter of fiscal 2001 to adjust its organizational structure and reduce its work force in accordance with revenue expectations and worldwide economic conditions," Love said.

The provider of Linux-based software's losses in the third quarter equated to 34 cents per share and included non-cash charges of $9.8 million. Revenue in the quarter totaled $18.9 million.

For the first nine months of the fiscal year, Caldera lost $40.3 million, or 89 cents per share, including charges of $16 million.

A year ago, Caldera lost $7.5 million, or 19 cents per share, on revenues of $1.9 million in the third quarter. In the first nine months of the previous fiscal year, Caldera lost $20 million, or $1.05 per share, on revenues of $3.1 million.

But Caldera said the year-over-year figures were not comparable because the May acquisition of two divisions of Tarantella Inc., formerly Santa Cruz Operation Inc., boosted both net revenue and operating expenses.

Love also announced that the company has consolidated operations into two business lines and eliminated a layer of senior management. Love will assume the roles of president and chief operating officer in addition to his present duties as CEO.

Caldera said it expects a fourth-quarter operating loss between $20 million and $24 million, a net loss of 35 cents to 42 cents per share and revenues of $15 million to $20 million.

Caldera stock closed Thursday at its lowest point in the past year, 44 cents, down 6 cents during the day. It has dropped from a high of $9 in the past year.

The company also announced that its board of directors has unanimously approved a proposal to have a stock split. The proposal would consolidate one share for each six shares previously outstanding. The company said it will schedule "in the near future" a stockholder meeting to consider the proposal.


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