DUBLIN In the face of mounting losses and technology-spending cutbacks, the Internet security firm Baltimore Technologies PLC announced a restructuring plan Wednesday that includes cutting hundreds of jobs and delisting its shares from the Nasdaq.
The 1,100-employee company said its losses before interest, taxes, depreciation, amortization, and special charges rose to $33.3 million in the second quarter, compared with $6.2 million in the year-ago period and $25.2 million in the first quarter. It said it hopes the restructuring will help it become profitable by the second quarter of 2002.
Revenue in the three months that ended June 30 rose 2% from the year-ago period, to $23.2 million, but was down from $32.2 million in the first quarter, as worldwide technology spending slowed.
The company said it would eliminate 220 jobs immediately and that it plans to reduce its staff to around 470 by the second quarter of 2002. It said that would save about $104 million a year.
Most of the new job cuts, which follow 250 layoffs announced in May, will come from the sale of noncore operations as the company focuses on its encryption and authentication services. Baltimore said this plan includes selling its content security business.
Earnings results have not been acceptable, Paul Sanders, the companys chief financial officer and acting chief executive, said in a conference call after the announcement of the restructuring. The important point is the quarter doesnt reflect the true potential of this group.
Fran Rooney resigned as chief executive July 10. A search for his successor is ongoing.
Baltimore said it will voluntary delist from the Nasdaq and move to the OTC Bulletin Board beginning on Sept. 30, a move it said could save at least $2.8 million a year. It might have faced delisting anyway; its stock has been below $1 since July 16, a price that could trigger delisting action by the market.
Baltimore Technologies also trades on the London Stock Exchange.