Feeds

Baltimore unveils lifeboat plan as 220 crew drowned

Aims to save £72m a year

  • alert
  • submit to reddit

Intelligent flash storage arrays

Internet security firm Baltimore Technologies is to sack 220 staff and to sell off its content security business

The job cuts form part of a restructuring plan which is designed to save Baltimore £72 million a year, far more than the £14 million target set last month. Around 1,150 people work for Baltimore, Europe's biggest security firm, following an earlier job cull of 250 in March. By selling off parts of its business and implementing more job cuts, the firm hopes to more than halve its workforce to 470 by the second quarter of next year.

Dwindling cash reserves and disappointing sales have forced Baltimore to take a scythe to its business, with its latest figures continuing the run of disappointing financial results.

Baltimore's second quarter revenues, published today, were £16.5 ($23.2 million) million compared to £22.9 million (US$32.2 million) in its first quarter and barely up on the £16.3 million ($22.9 million) Baltimore recorded in its second quarter last year. Losses before exceptional items and interest rates were taken into account was £23.7 million ($33.3 million) compared to £4.4 million ($6.2 million) in Q2 2000.

For the three months to June 2001, Baltimore ended up with a cash balance of £53.9 million ($75.8 million) compared to £83.6 million ($117.6 million) at the end of Q1 2001, so unless something radical was done it was in danger of running out of money.

Baltimore plans to focus on authorisation and Public Key-based authentication technology. This will be combined into one business unit, with a reorganisation of its direct and indirect sales forces.

The firm's content security business, which Baltimore now says has little "synergy" with its core encryption technology offering, will be run as a separate business while it looks for a buyer.

Through the restructuring programme, Baltimore hopes to turn around its business after a recent run of poor results that saw the departure of long-term chief executive Fran Rooney and speculation that the firm had become a takeover target.

The success of this makeover will depend in large part on the recovery of the ebusiness market and whether public key infrastructure technology becomes fashionable again, something that needs to happen sooner rather than later so far as Baltimore's shareholders are concerned. ®

Related stories

More jobs to go at Baltimore
Baltimore denies it's in takeover talks with CA
Baltimore Technologies faces takeover action
Baltimore CEO quits
Baltimore issues profits warning
Baltimore slashes 250 jobs as losses grow

Related Link

Baltimore's restructuring plan

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.