Feeds

Jobs blow hits Linuxcare as IPO put on hold

Last year's dancehall darlings become this month's wallflowers

  • alert
  • submit to reddit

Build a business case: developing custom apps

A sudden downturn in fortunes at software and services outfit Linuxcare could mean as many as 25 per cent of its staff are to lose their jobs. The firm announced yesterday that redundancies were planned, but would not reveal the numbers involved and refused to be drawn on speculation that as up to one quarter of its employees were facing the chop. Other rumours suggest that Linuxcare is spending around $6 million per month and could be on the brink of running out of cash. This news is the latest in a series of blows to hit Linuxcare. On Monday it asked for its SEC filing to be withdrawn and its planned $56 million IPO is now well and truly on ice. Last month its chief executive, Fernand Sarrat, resigned - soon afterwards so did chief information officer Doug Nassuar. To lose one senior executive is unfortunate, but to lose two is careless. The company's venture capitalist backers, Kleiner Perkins Caufield & Byers, is said to be actively searching for someone to buy Linuxcare. The most likely candidates are thought to be Red Hat and VA Linux. Initial signs were very positive for Linuxcare. It received investment capital from - among others - Dell and Sun Microsystems, and Sarrat claimed he had received offers of as much as 300 million during the company's second round of financing. Last year Linux companies could do no wrong in the eyes of the market. Now Linuxcare is citing unfavourable market conditions - along with the departure of its CEO - as the reason for stalling its IPO. Now, who was it that said "don't believe the hype?"

Boost IT visibility and business value

More from The Register

next story
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?