INPR - Inprise to Borland (BORL) Message Board

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Technology Stocks : INPR - Inprise to Borland (BORL)

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To: TTOSBT who wrote (4156)	1/28/2000 12:50:00 PM
From: Dennis Nicks	Read Replies (2) of 5102

TTOSBT, I'm seeing a pattern here. Every quarter, you seem to think the revenues are going to blast off and after each earnings announcement you moan and groan about it. If you look at more than just the end of quarter revenue numbers, you see a more complete picture. I'm going to simplify things by assuming flat revenues Q/Q (which was the case). Here's the breakdown of revenues from the product mix (Thanks Dale for this info!): Product: Q4 / Q3 / %change Delphi/C++: 39% / 49% / -20% JBuilder: 14% / 13% / +8% Enterprise: 22% / 17% / +29% Services: 25% / 21% / +19% Even though these are Q/Q numbers (it would be nicer to have year/year), this gives you a pretty clear idea of what is going on with revenues. The "old Borland" products show a decreasing revenue stream of -20%. This is significant because the decreasing revenue stream accounts for almost 50% of the total revenues. The good news is that the other 50% of revenues are growing at better than 20%. The next thing to do is to look at the market potential of the new products compared to the old and get an idea of future revenue from the new business. I don't have the exact numbers, but I can say with some certainty that the enterprise computing market is huge. So, now add onto this future revenues from the Kylix project and you've just tapped a completely new market with practically no competition in that space (for RAD tools). The great part about the Linux tools is that it is a scalable business model for Inprise/Borland. They already have all the resources to put these tools together, support them, sell them etc. They have been doing exactly that for years. The margins on their tools business are fantastic, so this should be very good for the bottom line. So, sit back, take a deep breath and be patient. I know its frustrating that they can't grow revenues at 200% year over year, but that's what happens when you are starting with over $200 million yearly revenues and not $10 million. Dennis

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