The Paris, France-based Linux vendor recorded revenue of just 870,000 euros ($1.2m) in its second quarter, ended March 31. Revenue for the year to date was just 2.1m euros ($2.9m), down from 3.0m euros ($4.1m) in the first half of 2006.
The six months to the end of March also saw Mandriva record a net loss of 1.4m euros ($1.9m), although that was a slight improvement on a 1.6m euro loss ($2.2m) recorded in the first half of last year.
In response the company has told investors that it believes that it has some structural issues, including the fact that its expense structure is too heavy and that it is trying to focus on too many things.
It is therefore putting a new plan in place that will cut expenses by 1m euros ($1.3m) per year and will see the company focusing on two key markets: consumers through OEM agreements in emerging markets, and desktop migration and administration in large organizations.
Mandriva said it is working on the fine details of the necessary reorganization and will announce them during June. The new plan is being put in place alongside the closure of a new investment round.
That investment round was approved at a shareholder meeting in late May and sees European expansion fund Occam Capital is investing 1.65m euros ($2.2m). The shareholders also agreed a capital increase of 1.6m euros ($2.2m) to all Mandriva shareholders, including OCCAM, and 55,000 euros ($74,212) to Mandriva employees.
Shareholders also approved Mandriva’s acquisition of backup software vendor LinboxFAS for 480,000 euros ($647,616) in shares and stock.
The company previously announced that it would use the OCCAM investment to close the acquisition and exit the plan de continuation bankruptcy protection plan it entered into in early 2004.
