OREM, Utah–Sept. 6, 2001– Caldera
International Inc., Thursday reported revenue of $18.9 million for
the quarter ended July 31, 2001.
This is the first quarter to include the results from the
acquisition of the assets and operations from Tarantella Inc. This
acquisition significantly increased the net revenue and operating
expenses of the company.
The company reported a net loss for the quarter ended July 31,
2001 of $18.8 million, or $0.34 per basic and diluted common share,
which includes non-cash charges of $9.8 million. Exclusive of the
effects of the non-cash charges, the pro forma net loss for the
quarter ended July 31, 2001 would have been $9.0 million or $0.16
per basic and diluted common share.
For the nine months ended July 31, 2001, the company’s net loss
was $40.3 million, or $0.89 per basic and diluted common share,
which included non-cash charges of approximately $16.0 million.
Exclusive of the effects of the non-cash charges, the pro forma net
loss for the nine months ended July 31, 2001 would have been $24.3
million or $0.54 per basic and diluted common share.
Results for the three- and nine-month periods ended July 31,
2001, are not comparable to the results for the three and
nine-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 May 2001.
Corporate Restructuring
“The company expects to commence additional restructuring
actions in the fourth quarter of fiscal 2001 to adjust its
organizational structure and reduce its workforce in accordance
with revenue expectations and worldwide economic conditions,” said
Ransom Love, president and chief executive officer of Caldera
International Inc.
Love continued, “The company has already taken action to
streamline its organizational structure through consolidating
operations into two business lines and eliminating one layer of
senior management. In so doing, I will assume the responsibilities
of president and chief operating officer in addition to my present
duties as CEO.”
The company expects that it will record restructuring charges
during the fourth quarter of fiscal 2001 in connection with these
planned actions.
Proposed Stock Consolidation
The board of directors of the company has unanimously approved
submitting to the stockholders a proposal to consolidate the issued
and outstanding common stock of the company on the basis of one
share for each six shares previously outstanding. The consolidation
will not be implemented until after the stockholders’ meeting,
which the company intends to schedule in the near future.
Financial Outlook
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially.
| — | For the fourth quarter of fiscal 2001, the company expects net revenue to be $15 to $20 million. |
| — | For the fourth quarter of fiscal 2001 the company expects the operating loss to be $20 to $24 million. This estimate includes restructuring costs and non-cash charges. The net loss is expected to be approximately $0.35 to $0.42 per basic and diluted common share based on the estimated weighted average number of common shares outstanding of approximately 57.1 million. |
Conference Call
As previously announced, Caldera International will host a
conference call at 5 p.m. EDT today, Sept. 6, 2001, to discuss
third quarter results. To participate in the teleconference, please
call 800/289-0436, confirmation code 468003, approximately five
minutes prior to the time stated above.
A Webcast replay will be available approximately four hours
following the end of the call at http://ir.caldera.com/conference.html.
Caldera International Inc.
Caldera International is the leader in “Unifying UNIX with Linux
for Business.” Based in Orem, 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 which 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; our 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
(unaudited)
July 31, Oct. 31,
2001 2000
(in thousands)
Cash $ 25,407 $ 36,560
Available-for-sale securities 11,936 54,179
Accounts receivable, net 16,161 1,545
Other current assets 4,820 1,700
Total current assets 58,324 93,984
Property and equipment, net 6,577 1,589
Other assets, net 100,300 11,945
Total assets $165,201 $107,518
Current liabilities 31,492 5,304
Long-term liabilities 8,515 --
Minority interest 173 --
Stockholders' equity 125,021 102,214
Total liabilities and
stockholders' equity $165,201 $107,518
Caldera International Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
2001 2000 2001 2000
(in thousands, except per share amounts)
Net Revenue $ 18,857 $ 1,188 $ 21,509 $ 3,102
Cost of Revenue 6,005 1,231 8,990 2,863
Gross margin
(deficit) 12,852 (43) 12,519 239
Operating Expenses:
Sales and marketing 13,029 4,625 23,407 10,504
Research and
development 6,662 1,111 10,757 3,391
General and
administrative 2,691 1,986 5,772 4,490
In-process research
and development 1,500 -- 1,500 --
Cost-sharing
arrangement with
SCO -- -- 602 --
Write-down of
investments 2,600 -- 6,910 --
Amortization of
goodwill and
intangibles 5,332 -- 5,332 --
Non-cash
compensation 391 1,043 982 4,001
Total operating
expenses 32,205 8,765 55,262 22,386
Loss From Operations (19,353) (8,808) (42,743) (22,147)
Equity in Loss of
Affiliate -- -- (648) --
Other Income, Net 769 1,288 3,358 2,149
Loss Before Income
Taxes (18,584) (7,520) (40,033) (19,998)
Provision for Income
Taxes (241) (11) (290) (38)
Net Loss $(18,825) $ (7,531) $(40,323) $(20,036)
Dividends Related to
Convertible
Preferred Stock -- -- -- (12,253)
Net Loss
Attributable to
Common Stockholders $(18,825) $ (7,531) $(40,323) $(32,289)
Basic and Diluted Net
Loss Per Common Share $ (0.34) $ (0.19) $ (0.89) $ (1.05)
Weighted Average
Common Shares
Outstanding 55,766 39,037 45,074 30,822