Baltimore CEO quits after financial warning

Dublin-based security software company Baltimore Technologies PLC announced Tuesday it has accepted the resignation of Chief Executive Officer (CEO) and Deputy Chairman Fran Rooney, effective immediately.

Chief Financial Officer (CFO) Paul Sanders will serve as acting CEO until the company can find Rooney's permanent replacement, the company said in a statement.

The company also announced two non-executive appointments to its board. David Guyatt, the founder and former CEO of Content Technologies -- which was bought by Baltimore last year -- and Bijan Khezri, a director at Baltimore will both begin their duties on the board of directors on July 12, the company said.

Rooney's resignation comes five days after Baltimore announced plans to restructure its operations and cut staff in order to operate within its current cash resources. In a conference call in connection with the announcement last week, Rooney said that details of the restructuring would not be announced until August when Baltimore releases its interim financial report. He did, however, indicate that the reduction in staff would be "significant."

Those job cuts will come on top of the 250 layoffs that occurred in May, when Baltimore cut 18 percent of its staff in a bid to save US$19.9 million annually. Baltimore, which claims to have more than 10,000 customers in more than 50 countries, currently employs about 1,150 people.

In last week's financial warning, Rooney said that Baltimore was expecting revenue of $22 million for the second quarter, representing a 10.6 percent decline compared with the same period one year ago, when the company reported revenue of $24.6 million. The company estimated that it has $76.7 million in cash remaining in its coffers.

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