Salt Lake City, UT — (press release excerpt) — Lineo Inc. today announced a restructuring that includes a reduction in force and the expected spin out of peripheral technology projects. This restructuring allows Lineo to focus on its core competency of developing advanced embedded operating systems and development tools that help developers and OEMs integrate open standards with proprietary… technology. Lineo will continue to develop its Embedix and RTXC operating system platforms, providing developers with solutions for DSP, 8-, 16-, 32-bit and multi-core deployments.

“From its inception, Lineo's core business has been the development of embedded operating systems and tools,” said Bryan Sparks, chairman and CEO of Lineo, Inc. “In anticipation of a growth year for the technology market, Lineo spent the past 18 months adding peripheral services, stacks and solutions — even hardware solutions — to our offerings. While the technology market has softened, demand for embedded operating systems remains high and we are responding by focusing on our robust Embedix and RTXC operating system tools and solutions.”

The restructuring includes the reduction of 60 employees. Lineo expects to spin out an additional 100 employees in conjunction with technology projects outside of Lineo's core embedded operating system and development tools business, leaving Lineo with approximately 110 employees to advance its core business.

Lineo will continue to provide operating system extensions, board support packages and tools that address various vertical market segments, but will rely on partners and third-parties to complete the development stacks for those vertical solutions. Lineo's embedded system offerings are especially robust in the areas of smart handheld devices, residential gateways, routers, VPNs, and digital television.

“Lineo technologies, tools and professional services create a bridge between open standards and proprietary embedded system deployment,” added Sparks. “This restructuring will actually focus more Lineo resources on the core business of developing those bridging technologies and solutions.”

This restructuring follows Lineo's recent announcements of an additional $20 million in strategic investments in Lineo by Hitachi and Sun Microsystems, as well as separate design wins with Sharp, Motorola and MP3.com.

 
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