Baltimore to axe more staff as cash pile dwindles

Baltimore to axe more staff as cash pile dwindles

Troubled Internet security company Baltimore Technologies has announced a further round of job cuts and a restructuring of its global business operations in a desperate bid to preserve its dwindling cash pile.

The Irish technology company says the latest restructuring programme will involve "fundamental change across the business, including a significant reduction in headcount". The company plans to announce further details of the programme in August.

In May, Baltimore said it would axe 250 of its 1400 staff in a bid to make savings of up to £35 million.

In signalling a new round of cuts, the company says that estimated revenues for the three months to 30 June 2001 will be around the £15.5 million mark - below analysts forecasts. Baltimore's current cash balance is estimated at £54 million. The operational cash outflow for the quarter was approximately £21 million, including previously committed capital expenditure of £3.3million and a one-off spend of £8.6million including the acquisition of Chubb Information Security.

Fran Rooney, CEO, Baltimore Technologies says: "The restructuring should enable the company to manage within its existing cash resources and will require fundamental changes which will focus the company on delivering business in a different way, as well as achieving cost savings."

Baltimore's share price has plummeted in the past eighteen months from a high of £13 in March 2000, to its current level of £0.20. The company was recently rapped over the knuckles by the markets for issuing a press statement which implied that it had won six new banking contracts. It later admitted the contracts were signed over a period of time and did not indicate a material improvement in revenues.

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