Feeds

Baltimore unveils lifeboat plan as 220 crew drowned

Aims to save £72m a year

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.