Press Release — OREM, Utah-Dec. 11, 2001-
Caldera International, Inc. (NASDAQ:CALD)
today reported revenue of $18.9 million for the three months ended
October 31, 2001. For the year ended October 31, 2001, revenue was
$40.4 million, in line with the Company’s previous guidance.
“This is the second quarter the Company has operated within the
guidelines of our operating model as we drive the Company toward
profitability. We are pleased to have met our financial projections
in each of these past two quarters despite challenging economic
conditions,” said Ransom Love, President and CEO of Caldera. “As a
result of our expense-reducing activities, approximately $2.0
million of annual compensation expenses have been eliminated.
Operating costs this quarter were $3.9 million less than the
previous quarter as a result of our restructuring activities.”
“A positive indicator not reflected in the current quarter is
that our sales in the pipeline are much stronger as we end this
quarter than we have seen for several quarters,” said Mr. Love.
The Company reported a net loss to common stockholders for the
three months ended October 31, 2001 of $91.0 million or $1.60 per
common share, which includes non-cash charges of $80.8 million and
restructuring charges of $3.1 million. Exclusive of the effects of
the non-cash and restructuring charges, the net loss for the fourth
quarter would have been $7.1 million, or $0.12 per basic and
diluted share.
“After evaluating current market and other conditions during the
fourth quarter, we determined that various assets related to the
operations acquired from Tarantella were impaired and that the book
value exceeded the current estimates of fair value. As a result we
recorded a $73.7 million write-down of goodwill and intangibles,”
said Love.
The net loss to common stockholders for the year ended October
31, 2001 was $131.4 million or $2.73 per common share, including
non-cash charges of $95.5 million and restructuring charges of $3.1
million. Exclusive of the effects of the non-cash and restructuring
charges, the net loss for the year would have been $32.7 million,
or $0.68 per basic and diluted common share. Results for the three
and twelve-month periods ended October 31, 2001, are not comparable
to the results for the three and twelve-month periods of the prior
year because of the significant changes in the operations of the
Company as a result of the major acquisition completed in the third
quarter of 2001.
“During this quarter we continued to provide trusted business
solutions and services to our worldwide customers including
McDonald’s, CVS Pharmacy, Rite Aid Pharmacy, Eckerd, Shopper’s Drug
Mart, NASDAQ, Goodyear, BMW, Michael’s, Tyson Chicken, Publix Super
Markets, Polish Ministry of Finance, The China Post, Ministry of
Administration in Korea, and the Savings Bank of Russia,” said
Love. “We are also seeing an increase in the number of software
platform providers who are certifying their products on Caldera
Open UNIX 8 including such companies as Informix, Oracle, Progress
and Sybase.”
Financial outlook
The following statements are based on current expectations. These
statements are forward looking and actual results may differ
materially. – For the first quarter of fiscal 2002, we expect net
revenue to be $16 to $18 million.
– For the first quarter of fiscal 2002, we expect the gross margin
to remain consistent at 68 to 70 percent and operating costs to
decrease by approximately 5 to 7 percent as a result of recent
cost-cutting actions.
– For fiscal 2002, we expect net revenue will increase during
quarters two through four by 3 to 5 percent per quarter.
– For our fiscal year ending October 31, 2002, we expect net
revenue of $68 million to $75 million.
Conference Call
As previously announced, the Company will host a conference call at
5:00 p.m. EST today, December 11, 2001, to discuss fourth quarter
and fiscal year 2001 results. To participate in the teleconference,
please call (800) 289-0436, confirmation code 528730 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) is the leader in “Unifying
UNIX with Linux for Business.” Based in Orem, Utah, Caldera has
representation in 82 countries and has 15,000+ resellers worldwide.
For more information on Caldera products and services, visit
http://www.caldera.com.
Caldera , OpenLinux, UnixWare, Open UNIX, Caldera Volution and
“Unifying UNIX with Linux for Business” are trademarks or
registered trademarks of Caldera International, Inc. LINUX is a
registered trademark of Linus Torvalds. UNIX is a registered
trademark of The Open Group in the United States and other
countries.
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. Those factors include the ability of the Company to
successfully integrate the operation of the recently acquired
assets and operations that are significantly larger than the
historical operations of the Company; 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
failure of recently introduced and new products to operate as
designed due to incompatibility with some platforms or 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.