Baltimore Technologies makes fresh cuts
22 August 2001 | 2339 views | 0
Internet security firm Baltimore Technologies has embarked on a fresh round of job cuts as it seeks to shrink its total workforce from 1100 people to 470 by the second quarter of 2002. The cuts are part of a wide-ranging restructuring plan which will coincide with a voluntary delisting from the Nasdaq and the sale of non-core activities.
The restructuring is aimed at making Baltimore cash flow positive by mid-2002 and will result in annual savings of £72 million. It comes as the firm reported widening losses for the second quarter, up to £23.7 million from £17.9 million in the first quarter. Revenues for the quarter were £16.5 million, compared with £16.3 million for the same period in 2000.
Paul Sanders, chief financial officer and acting CEO, says: "Clearly these results are not acceptable...the measures we have announced today will firmly address this situation."
The Dublin-based company says 220 jobs will be lost immediately as it bids to dampen a scorching cash burn of nearly £25 million per quarter. The latest round of cuts are in addition to the 250 layoffs announced by the company in May.
Baltimore says it will re-align its business model and sales channels to focus on the sale of its UniCert PKI authentication and SelectAccess authorisation systems as a unified business proposition. The Content Technologies business, acquired last October for £695 million primarily for its Mimesweeper e-mail security product, will be run as a separate division with a view to divestment.
The restructuring may be too late to save the company from predators. Baltimore's market capitalisation has fallen from a high of £5.5 billion to its current level of £115, leaving it wide open to takeover. The company has already rebuffed an approach from technology licensing company Chantilley Corporation.