Leading Linux operating system and tools vendor Wind River is reorganizing into four product divisions, and has hinted that layoffs and offshoring are on the way. The four divisions are VxWorks, Linux, Tools, and Device Management.

In its press release, Wind River stated: “As a result of the reorganization, certain non-critical, redundant or administrative positions will be eliminated, and staffing of development resources in low-cost geographies will be accelerated.”

The company says the regrouping will help it focus on investing in the following high growth markets: mobile handsets, automotive infotainment, network equipment, and certain aero/defense segments, like MILS. In Wind River's third-quarter earnings report in December, the company mentioned Linux-based mobile handsets and automotive infotainment as being particularly hot markets over the previous quarter.

Wind River's fiscal 3Q 2008 revenues were up 16 percent from 3Q fiscal 2007, rising from $70.5 million to $81.6 million and beating Wall Street projections. However, the company projected that its 4Q numbers ending January 31st would fall between $84-$86 million, slightly below projections. The company expected its full fiscal year 2008 revenues to fall between $328-$330 million.

Q3 FY08 bookings by end market — Source: Wind River

Although overtaken by Microsoft in 2004, Wind River was the top revenue gatherer for many years in the market for embedded OSes and tools. Hit hard by the downturn in telecom at the beginning of the decade, Wind River has worked to diversify its business model, as the chart above shows. Wind River's stock valuation was recently bouyed by rumors of an IBM acquisition, and later by news of its involvement in Google's Android project. Recently, though, Wind River has not been immune to the stock market slump.

Stated Ken Klein, CEO of Wind River, “The new organization allows us to focus on new technology and market opportunities, be nimble and agile with customers and partners, and drive and measure return on investment.”

The new divisions will be headed up by existing Wind River executives:

• VxWorks — Scot Morrison
• Linux — Vincent Rerolle
• Tools — Tomas Evensen
• Device Management (story) — Amit Ronen

Over the last year, Vincent Rerolle (pictured at right), the new senior VP and GM of the Linux product division, has moved from being director of Business Development to VP of Corporate Strategy. Previously, Rerolle was VP of corporate development at Mercury Interactive, responsible for mergers and acquisitions, business development and technology alliances. He also held management positions at Citadon, McKinsey, Vivendi, and Sagem. Rerolle has a B.S. degree in engineering from ENST Paris and an MBA from INSEAD.

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