SOURCE: Inprise/Borland Corporation
Inprise/Borland Announces Second Quarter 2000 Results
Increased Revenues and Cost Controls Return Company to Profitability
SCOTTS VALLEY, Calif., July 25 /PRNewswire/ -- Inprise/Borland (Nasdaq: INPR - news) today announced financial results for the second quarter of fiscal year 2000. For the second quarter, revenues were $46.7 million, up from $40.2 million in the same period a year ago, an increase of 16 percent. Excluding merger costs, the Company recorded net income of $4.0 million, or $0.06 per share. This compares to a loss of $9.5 million or $0.18 per share in the prior year, excluding the impact of the nonrecurring gain from the Microsoft cross license of $105.1 million. For full details on Inprise/Borland's reported results, see the financial tables accompanying this release.
(Photo: NewsCom: newscom.com )
Cash, cash equivalents and short-term investments as of June 30, 2000 were $243.9 million, up from $197.7 million at December 31, 1999. The increase in cash was due to cost containment efforts and the sale of the Scotts Valley campus in March of this year. Cash, cash equivalents and short-term investments increased during the current quarter by $4.2 million as compared to March 31, 2000.
``We continue to make progress achieving our financial objectives, particularly in the operations area,'' said Fred Ball, Inprise/Borland's senior vice president and chief financial officer. ``Going forward we are planning to reinvest a portion of these cost savings in strategic areas of the company including research and development, professional services, marketing and the direct sales force.''
``Our financial performance is directly related to our efforts to strengthen the company and execute on our plan to deliver cross-vendor solutions that help our customers more fully leverage the power of the Internet,'' said Dale Fuller, Inprise/Borland's interim president and CEO. ``This past quarter we've made great strides toward achieving our objectives by bringing in additional senior-level management, creating three distinct business units and unveiling strategic initiatives.''
Among the highlights for Inprise/Borland during the second quarter of fiscal year 2000:
-- Strengthening the company's executive team with the hiring of
Doug Barre, senior vice president and chief operating officer,
Roger Barney, senior vice president and chief administrative officer,
Ted Shelton, senior vice president business development and
Keith Gottfried, senior vice president and general counsel
-- Creating the Enterprise, Java and Rapid-Application Development (RAD)
Tools business units to better support the needs of Inprise/Borland
customers
-- Announcing the Inprise/Borland e-Commerce Framework Solution, an
integrated software and consulting solution that allows small to
mid-sized businesses worldwide to quickly and efficiently deploy open,
scalable robust e-Commerce sites, using our proven technology
-- Announcing initiatives for the Java® market, such as the JBuilder
Java development environment for Apple® Mac OS X and JBuilder
Handheld Express(TM) for the Palm operating system, further supporting
the company's cross vendor approach; receiving the Java Pro Readers'
Choice Award for Best Java IDE, earning nearly twice the amount of
votes of other contenders in the category; being selected to the
Executive Committee (EC) of the Java Community Process (JCP) to support
the adoption of Java; and announcing general availability of
JDataStore(TM) 3.5, a Pure Java(TM) Relational Database Management
System
-- In the RAD Tools marketplace, introducing an initiative to provide a
"fast path" for Visual Basic® developers to the Linux® platform
with Borland Delphi(TM)
-- For Enterprise customers, announcing key deals with Deutsche Bank,
Bank of America and Hitachi, Ltd., among others; releasing the Inprise
Application Server(TM) 4.1, one of the industry's first application
servers to support the J2EE standard and combine the benefits of EJB
and CORBA®; launching AppCenter 4.0, a tool to manage distributed
applications; launching VisiBroker 4.1, the new version of Inprise's
award-winning CORBA object request broker; and the selecting of
VisiBroker by the Amsterdam Option Exchange (AOT) to better automate
the stock and option trading process by connecting handheld, wireless
devices on the trading floor directly to the AOT's back-end ordering
system
About Inprise/Borland
Inprise Corporation (referred to in this press release as Inprise/Borland) is a leading provider of Internet access infrastructure and application development tools and services for most major platforms, including Linux, Solaris(TM) and Windows®. Founded in 1983, Inprise/Borland is headquartered in Scotts Valley, California, with operations worldwide. To learn more, visit Inprise/Borland community site at community.borland.com or call the Company at 800-632-2864. To access Inprise/Borland press releases on the web, visit: www.inprise.com or www.borland.com.
NOTE: Inprise/Borland's product names are trademarks or registered trademarks of Inprise Corporation. Other product names mentioned herein may be trademarks of the party using such names. Forward-looking statements in this release, including but not limited to, those concerning Inprise/Borland's future financial performance, product development plans and the potential features of or benefits to be derived from the products developed, marketed or sold by Inprise/Borland, 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 Inprise/Borland, shifts in customer demand, market acceptance of new or enhanced products developed, marketed or sold by Inprise/Borland, 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 reports on Forms 10-K and 10-Q filed by Inprise/Borland with the SEC.
INPRISE CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
Revenues
Licenses and other $40,000 $34,217 $79,774 $72,137
Services 6,716 6,022 13,442 11,517
Total revenues 46,716 40,239 93,216 83,654
Costs of revenue 7,747 10,444 16,746 21,620
Gross profit 38,969 29,795 76,470 62,034
Operating expenses
Research and development 10,509 9,807 21,562 20,713
Selling, general and
administrative 25,447 30,503 52,668 63,480
Provision for restructuring and
acquisition charges -- -- -- 6,959
Other non-recurring charges -- -- -- 8,193
Merger related costs 2,014 -- 3,556 --
Total operating expenses 37,970 40,310 77,786 99,345
Operating income (loss) 999 (10,515) (1,316) (37,311)
Interest income, net and
other (B) 2,392 106,260 4,607 108,495
Income before taxes 3,391 95,745 3,291 71,184
Provision for income taxes 1,389 8,225 2,435 9,253
Net income $2,002 $87,520 $856 $61,931
Income per share - basic (A) $0.03 $1.61 $0.01 $1.21
Income per share - diluted $0.03 $1.47 $0.01 $1.10
Shares used in basic income
per share computation 61,464 54,343 61,209 51,048
Shares used in diluted income
per share computation 69,165 59,634 71,481 56,011
(A) Includes $219 and $41 of accretion charges to preferred stock in the quarters ended June 30, 2000 and June 30, 1999, respectively.
(B) Includes $105 million one-time license fee received from Microsoft Corporation and other related credits in the quarter ended June 30, 1999.
INPRISE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, unaudited)
June 30, 2000 Dec. 31, 1999
ASSETS
Cash, cash equivalents and
short term investments $243,950 $197,693
Other current assets 45,178 35,442
Property and equipment, net 21,934 75,002
Other non-current assets 6,401 4,879
Total assets $317,463 $313,016
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $77,033 $77,897
Long-term debt and other 19,056 19,462
Stockholders' equity 221,374 215,657
Total liabilities and stockholders' equity $317,463 $313,016
SOURCE: Inprise/Borland Corporation |
