CNET también está disponible en español.

Ir a español

Don't show this again


Marimba cuts 20 percent of work force

The Internet infrastructure software maker says it will cut its work force by 60 people and discontinue, its managed-services division.

Internet infrastructure software maker Marimba announced Thursday that it will cut its work force by 20 percent, or 60 people, and discontinue, its managed-services division.

The across-the-board cuts are aimed at turning a profit by the fourth quarter, the company said. Other cost-cutting moves included the suspension of executive cash bonuses and reduction of executive salaries.

As a result, the company expects to record a nonrecurring charge of between $700,000 and $800,000 in the second quarter. The company said it believes these actions will reduce its overall cost structure by approximately $2 million per quarter beginning in the third quarter, or approximately $8 million annually.

"These decisions are prudent given the current economic uncertainties and our goal to achieve profitability in the fourth quarter of 2001," Marimba CEO John Olsen said in a statement.

Marimba launched in October 2000 to offer managed services, allowing companies to hand off many of their Internet-based technology functions such as content distribution, updates to applications, device management and application-performance monitoring.

The Mountain View, Calif., company was once considered a high-flying business and a pioneer in the once-hot market for so-called push technology. In the mid-1990s, push was seen as one of the first "killer applications" on the Internet. Companies such as Marimba and PointCast Network delivered information automatically to a PC according to programmed preferences, eliminating the need to surf Web sites to gather specific news or information.

Last week, Marimba announced a loss, excluding amortization of deferred compensation, of $4.2 million, or a diluted loss of 18 cents per share, on revenue of $11 million for the quarter ended March 31. That compares with a loss of $323,000, or 1 cent per diluted share, on revenue of $10.6 million in the year-earlier period.