PRESS RELEASE: OREM, Utah –Feb. 27, 2002–
Caldera International, Inc. (NASDAQ:CALD)
today reported revenue of $17.9 million for the three months ended
January 31, 2002, in line with the Company’s previous guidance.
“This is the third quarter the Company has operated
within the guidelines of our operating model. We are pleased to
have met our revenue projections in each of these past three
quarters,” said Ransom Love, President and CEO of Caldera. “The
past quarter included sales to many of our widely recognized
accounts including Daimler Chrysler, CVS Pharmacies, Walgreens,
Target, McDonald’s, Eckerd and Safeway, demonstrating corporate
confidence in Caldera’s products and future.”
The Company reported a net loss to common stockholders for the
three months ended January 31, 2002 of $11.0 million or $0.19 per
common share, including non-cash and restructuring charges of $6.4
million. “As a result of our ongoing expense reduction measures,
costs of continuing operations this quarter were $3.5 million less
than the previous quarter,” said Love. Exclusive of the
restructuring charge of $5.3 million, the net loss for the first
quarter would have been $5.7 million, or $0.10 per basic and
diluted share.
Results for the three-month period ended January 31, 2002, are
not comparable to the results for the three-month period of the
prior year because of the significant changes in the operations of
the Company as a result of a major acquisition completed in the
third quarter of 2001.
Caldera will hold its Annual Shareholder’s Meeting on March 4,
2002, at which the Company is anticipating shareholders will
approve a proposal for a one-for-four reverse stock split of its
common stock. Assuming this consolidation occurs, the 57.3 million
weighted average shares currently outstanding would be reduced to
approximately 14.3 million, which will affect the per share
calculations.
Financial outlook
The following statements are based on current expectations.
These statements are forward looking and actual results may differ
materially.
| — | For the second quarter of fiscal 2002 ending April 30, 2002, we expect net revenue to be $16 to $18 million. |
| — | For the second quarter of fiscal 2002, we expect the gross margin to remain fairly consistent at 68 percent and operating costs to decrease by 3 to 5 percent as a result of continuing expense improvements. |
| — | For our fiscal year ending October 31, 2002, we expect net revenue of $68 to $72 million. |
Conference Call
As previously announced, the Company will host a conference call
at 5:00 p.m. EST today, February 27, 2001, to discuss first quarter
results. To participate in the teleconference, please call (800)
289-0437, confirmation code 557672 approximately five minutes prior
to the time stated above. A listen only Webcast of the call will be
broadcast live with a replay available several hours following the
call. The Webcast and replay may be accessed from http://ir.caldera.com/conference.html.
Caldera International, Inc.
Caldera International (Nasdaq: CALD) provides “Powerful Choices”
for businesses through its UNIX, Linux and Volution product lines
and services. Based in Orem, 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.
CALDERA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
January 31, October 31,
2002 2001
(unaudited)
Cash and cash equivalents $ 26,105 $ 22,435
Available-for-sale securities -- 5,943
Accounts receivable, net 13,082 16,742
Other current assets 3,489 3,438
---------------- ----------------
---------------- ----------------
Total current assets 42,676 48,558
Property and equipment, net 3,989 6,116
Goodwill and intangibles 16,902 17,686
Other assets 2,434 2,499
---------------- ----------------
Total assets $ 66,001 $ 74,859
================ ================
Current liabilities 34,850 34,157
Long-term liabilities 6,869 5,925
Minority interest 173 173
Stockholders' equity 24,109 34,604
---------------- ---------------
Total liabilities and
stockholders' equity $ 66,001 $ 74,859
================ ===============
CALDERA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Jan. 31,
2002 2001
---- ----
(unaudited)
Revenue $ 17,913 $ 1,054
Cost of revenue 5,596 1,177
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Gross margin (deficit) 12,317 (123)
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Sales and marketing expense 8,371 5,520
Research and development expense 5,367 1,869
General and administrative
expense 2,724 1,748
Amortization of goodwill and
intangibles 840 --
Restructuring charge 5,261 --
Non-cash compensation 265 334
Non-recurring cost sharing
charge -- 602
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Total operating expenses 22,828 10,073
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Loss from operations (10,511) (10,196)
Equity loss in affiliate -- (648)
Other income (expense), net (333) 1,028
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Loss before income taxes (10,844) (9,816)
Provision for income taxes (162) (27)
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Net loss $ (11,006) $ (9,843)
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Basic and diluted net loss per
common share $ (0.19) $ (0.25)
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Weighted average common
shares outstanding 57,341 39,588
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