Inprise/Borland Announces Fourth Quarter and Year-End 1999 Results
PR Newswire - January 27, 2000 16:20
SCOTTS VALLEY, Calif., Jan. 27 /PRNewswire/ -- Inprise/Borland Corporation (Nasdaq: INPR) today announced financial results for the fourth quarter and for the fiscal year that ended December 31, 1999. For the fourth quarter, revenues were $45.5 million, down from $48.1 million in the same period a year ago. Excluding a non-recurring restructuring charge of $34.8 million, for the fourth quarter, the Company recorded a net loss of ($3.0) million or ($0.05) loss per share, which compares with a net loss of ($2.6) million or ($0.05) per share in the same period last year, when excluding non-recurring items.
During the fourth quarter, the Company recorded a restructuring charge of $34.8 million. The restructuring charge consists primarily of a write-down for the Company's Scotts Valley facility of $29.7 million; a $3.1 million charge for discontinuation of the Oracle ERP implementation in Europe; and a $3.0 million charge for severance costs associated with organizational changes implemented in the fourth quarter. These charges were offset, in part, by the reversal of restructuring charges totaling $4.1 million, that were taken in both the first quarters of 1999 and 1998, which will not be utilized. Including the non-recurring restructuring charge, the Company recorded a net loss of ($37.8) million or ($0.64) loss per share.
For the fiscal year that ended December 31, 1999, the Company reported revenues of $174.8 million for 1999, compared to $189.1 million in 1998. For the 12-month period that ended December 31, 1999, the Company recorded net income of $22.7 million, or diluted earnings per share of $0.35, compared to net income of $8.3 million or diluted earnings per share of $0.14 for the same period last year. Net income for fiscal year 1999 included a $100 million one-time licensing fee received from Microsoft and one-time charges of $50.0 million for restructuring, severance, compensation expenses related to InterBase, and the write-down of the Company's Scotts Valley facility.
Cash, cash equivalents and short-term investments as of December 31, 1999 were $197.7 million, up from $179.5 million as of September 30, 1999.
"Today's results indicate that we are making progress toward executing our plan to remain the number one independent provider of world class application development tools for all major platforms, including Linux, Solaris, and Windows," said Dale Fuller, interim president and CEO of Inprise/Borland. "Over the last quarter, we have moved our Linux, Internet Access Infrastructure and integration frameworks for Application Service Providers strategies forward and continued moving the Company towards operational profitability."
During the last quarter, in its push to become the leading provider of tools and applications for the Linux platform, Inprise/Borland delivered a free download of its Linux just-in-time (JIT) compiler to the Linux community on its Web site; released JBuilder Foundation, a version of JBuilder for the Linux, Solaris, and Windows platforms; announced its intention to open-source InterBase 6.0, which is currently in beta, the first commercial grade embedded database for multiple platforms in the first half of the year 2000; and announced VisiBroker for Linux, one of the first commercial grade Linux CORBA Object Request Brokers (ORB). The Company also shipped Inprise Application Server 4, the only application server currently in the marketplace to fully integrate both CORBA and Enterprise Java Beans technologies (EJB).
About Inprise/Borland Corporation
Inprise/Borland Corporation is a leading provider of Internet access infrastructure tools and services for all major platforms, including Linux, Solaris and Windows. Founded in 1983, Inprise is headquartered in Silicon Valley, California, with operations worldwide. To learn more, visit Inprise/Borland at borland.com, the community site at community.borland.com or call the company at 800-632-2864.
NOTE: Inprise product names are trademarks or registered trademarks of Inprise Corporation. Other names mentioned herein might be trademarks of the party using such names.
Forward-looking statements in this release, including but not limited to, those concerning Inprise's future financial performance, product development plans, and the potential features of or benefits to be derived from the Company's products, involve a number of uncertainties and risks, and actual events or results may differ materially. Factors that could cause actual events or results to differ materially include, among others, the following: possible disruptive effects of organizational or personnel changes by the Company, shifts in customer demand, market acceptance of the Company's new or enhanced products, delays in scheduled product availability dates, actions or announcements by competitors, software errors, general business conditions and market growth rates in the client/server and Internet software markets, and other factors described in the Company's S.E.C. reports on Forms 10-K and 10-Q.
INPRISE/BORLAND CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
Revenues
Licenses and other $38,485 $41,518 $150,550 $166,214
Services 6,989 6,622 24,256 22,898
Total revenues 45,474 48,140 174,806 189,112
Cost of revenues
Licenses and other 4,006 4,613 19,267 15,683
Services 5,985 4,318 22,676 15,402
Cost of revenues 9,991 8,931 41,943 31,085
Gross profit 35,483 39,209 132,863 158,027
Operating expenses
Research and development 11,468 12,737 42,257 47,324
Selling, general and
administrative 29,797 31,055 123,530 112,781
Total continuing expenses 41,265 43,792 165,787 160,105
Provision for restructuring
and acquisition charges 5,131 (3,434) 12,090 15,848
Write-down of real estate 29,677 -- 29,677 --
Other non-recurring charges -- -- 8,193 --
Total restructuring,
acquisition and
non-recurring charges 34,808 (3,434) 49,960 15,848
Total operating expenses 76,073 40,358 215,747 175,953
Operating loss (40,590) (1,149) (82,884) (17,926)
Interest income, net
and other (B) 2,295 3,580 114,234 21,892
Income (loss) before taxes (38,295) 2,431 31,350 3,966
Provision (benefit) for
income taxes (467) (1,068) 8,666 (4,380)
Net income (loss) $(37,828) $3,499 $22,684 $8,346
Income (loss) per
share - Basic (A) $(0.64) $0.07 $0.40 $0.16
Income (loss) per
share - Diluted (A) $(0.64) $0.06 $0.35 $0.14
Shares used in the
calculation of basic
income (loss) per share 59,268 47,987 54,810 50,118
Shares used in the
calculation of diluted
income (loss) per share 59,268 55,233 63,408 57,384
(A) The calculation of net loss per share for the three months ended
December 31, 1999 and the net income per share for the year ended
December 31, 1999 includes an accretion to the Preferred Stock Series
C andMandatorily Redeemable Convertible Preferred Stock of
approximately $219,000 and $506,000, respectively.The calculation of
net income per share for the three months and year ended
December 31, 1998 includes an accretion to the Convertible Preferred
Stock of approximately $100,000 and $406,000, respectively.
(B) The interest income, net and other for the year ended
December 31, 1999 includes $100 million one-time license fee received
from Microsoft.The interest income, net and other for the quarter
and year-ended December 31, 1998 includes a one-time gain of
approximately $1.5 million and $17 million, respectively, from the
sale of the Company's equity interest in Starfish Software, Inc.
INPRISE/BORLAND CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, unaudited)
Dec. 31, Dec. 31,
1999 1998
ASSETS
Cash, cash equivalents and
short-term investments $197,693 $84,362
Receivables, net 27,303 43,515
Property and equipment, net 75,002 111,149
Other assets 13,018 14,762
Total assets 313,016 253,788
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 77,897 76,768
Long-term debt and other 19,462 19,138
Mandatorily redeemable convertible
preferred stock -- 36,873
Stockholders' equity 215,657 121,009
Total liabilities and stockholders' equity $313,016 $253,788
SOURCE Inprise/Borland Corporation
/CONTACT: Marilee Adams of Inprise/Borland Corporation, 831-431-1958, or
madams@inprise.com; or Jacki Decoster of TSI Communications, 650-635-0200, or
jdecoster@tsicomm.com, for Inprise/Borland Corporation/
/Web site: inprise.com |
