Certicom Losses Widen, Cutting 30 Percent Of Jobs

Certicom, a security provider for mobile e-business, said Monday its quarterly losses widened as its customers delayed purchases amid uncertain economic conditions, and it is cutting 30 percent of its workforce and taking a $5 million charge.

The company also says Gregory Capitolo will become its new CFO, replacing Richard Brounstein who is retiring.

Hayward, Calif.-based Certicom reported a fiscal fourth-quarter pro forma net loss of $8 million, or 29 cents per share, excluding non-cash charges of $4.9 million. That compares with a loss of $4.3 million, or 19 cents per share, excluding special charges, a year earlier. Including charges, the company reported a loss of $12.9 million, or 46 cents per share in the quarter, compared with a loss of $6.8 million, or 30 cents a share, in the year-ago period, it says.

A group of eight Wall Street analysts had forecast Certicom would report a loss ranging between 33 cents to 26 cents per share, with a consensus estimate of 31 cents per share, according to research firm Thomson Financial/First Call.

Certicom, which saw its fourth-quarter revenues rise 93 percent, to $7.7 million, says it is cutting 30 percent of its workforce and eliminating temporary and contract employees along with "overall discretionary spending." The company will take a one-time $5 million charge for the cuts in the first quarter of fiscal 2002, it says.

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