Gloom lifts over Baltimore

Security firm meets six-monthly expectations

Struggling security firm Baltimore has released interim results in line with expectations for the first time in two years.

However, turnover was down 43 per cent to £22.1m, compared with £38.9m the previous year for its interim six-month results ended 30 June. Loss before tax and various items was £9.8m, compared with a loss of £39.7m the year before.

Last year, Baltimore shed 18 per cent of its workforce to save £14m (CRN, 23 May 2001) and issued three profit warnings.

Continuing its restructuring, the firm has cut more jobs, bringing staff numbers to 382, compared with 562 in December 2001. It also reported a cash balance of £23.1m, compared with £53.9m last year.

Bijan Khezri, chief executive of Baltimore, said: "We have made real headway in rationalising the business during this half year, yielding significant cash and reducing the working capital requirements of the business.

"Together, these two factors have strengthened our financial position, enabling us to focus on our core business of authentication, digital signing and authorisation technologies."

Judith Jordan, an analyst at Ovum Holway, said the firm had been hit hard by the downturn in IT spending and the slow take-up of Public Key Infrastructure (PKI).

"Baltimore is attributing this to the fact that PKI is still 'early adopter' technology, but the trouble is that it has been that for a long time now. Baltimore faces competition from players such as RSA and Microsoft," Jordan said.

Rival security vendor SurfControl released its Q4 results ended 30 June. Turnover increased by 42 per cent to $15.6m, compared with $11m for the same period the previous year. Profit stood at $1.6m, compared with a loss of $13.8m last year.