Caldera reports loss, reverse stock split
The Linux company reports a loss of $11 million on revenue of $17.9 million. It also says it expects shareholders to approve a 1-for-4 reverse stock split.
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Orem., Utah-based Caldera, which sells a version of Linux and two versions of Unix, also said it expects shareholders to approve a 1-for-4 reverse stock split. Such moves are typically undertaken to prevent delisting from regulated stock markets. Caldera warned in September that its low stock price threatened the company with delisting from the Nasdaq market.
Caldera competes with Linux sellers such as Red Hat, and with server companies such as Sun Microsystems with their own versions of Unix.
Caldera acquired its versions of Unix in 2001 from Tarentella, formerly called the Santa Cruz Operation. However, Caldera didn't get as much benefit as it hoped from the better-established Unix customers. The company had to write down $74 million of goodwill and intangible assets related to the acquisition as a result.
Though profitability hasn't arrived, the addition of the Unix business significantly lifted Caldera's revenue, which was $1 million in the year-ago quarter. The company also sells management software.
Caldera had a restructuring charge of $5.3 million in the quarter. Excluding the charge, the company's net loss for the quarter would have been $5.7 million, or 10 cents per share.
Estimates for Caldera earnings were unavailable from First Call because analysts surveyed by the tracking firm didn't cover the company. Caldera, however, said its results were in-line with its previous guidance.
For the full fiscal year, ending Oct. 31, the company expects revenue of $68 million to $72 million.