Borland Announces Fourth Quarter and Fiscal Year 2000 Earnings Results
Outlines 2001 Strategy to Grow Revenue, Increase Profitability and Extend Global Leadership in High-Performance Platforms for e-Business Application Implementation
SCOTTS VALLEY, Calif., Jan. 25 /PRNewswire/ -- Borland Software Corporation (Nasdaq: BORL - news), formerly known as Inprise Corporation, today announced operating results for the Company's fourth quarter and its fiscal year ended December 31, 2000 and outlined its business strategy for 2001.
For the fourth quarter, revenues were $50.3 million, up from $45.5 million in the same period one year ago, and excluding one time gains and losses, net income was $7.3 million or $0.11 per fully diluted share, compared to a net loss of ($3.0) million or ($0.05) per diluted share in the fourth quarter of 1999.
For the fiscal year ended December 31, 2000, Borland reported revenues of $191.1 million, a 9% increase from revenues of $174.8 million in 1999. Excluding non-recurring gains and losses, Borland recorded net income of $20.2 million, or fully diluted earnings per share of $0.29, compared to a net loss of ($30.7) million, or diluted loss per share of ($0.56), for the same period last year. Net income for fiscal 1999 included a $100 million one-time licensing fee received from Microsoft Corporation and one-time charges of $50.0 million for restructuring, severance and compensation expenses related to Borland's InterBase® product line, and the write-down of Borland's Scotts Valley facility which was sold in March 2000 for $47 million.
``Our outstanding performance in the fourth quarter caps off a momentous year of transition at Borland,'' said Dale L. Fuller, president and chief executive officer of Borland. ``I think it is particularly fitting that we are announcing our third consecutive quarter of operating profitability at the same time we reclaim our well-recognized Borland name, symbolizing our return to Borland's historic commitment to superior technology and industry leadership. Our renewed focus on product development, business execution and operational efficiency has created a solid foundation for even greater success in the year ahead as we help companies develop, deploy and manage applications for a new digital world.''
2000 Highlights
In 2000, Borland undertook a number of critical steps to enhance operating efficiency and strengthen its business, the most important of which was the reorganization of the Company's core product groups into four distinct business units: Rapid Application Development (RAD), Java, Enterprise Deployment and Borland® Developer Services. In addition, Borland's sales and marketing groups were reorganized into three regional sales and marketing units to better support the Company's customers and partners in the Americas, Asia-Pacific and Europe/Middle-East/Africa (EMEA). Dale Fuller agreed to serve as Borland's president and chief executive officer on a permanent basis, and the Company also put in place a seasoned senior management team with a proven ability to execute. Several new product initiatives were undertaken to ensure that Borland will continue to be a technology innovator in the months and years ahead.
Borland returned to operating profitability during the second quarter, and increased its revenues in each quarter of 2000. The Company also bolstered its balance sheet, increasing cash, cash equivalents and short-term investments to $263 million at year-end. New versions of the award-winning JBuilder(TM) development environment for Java(TM), a first generation wireless development product called JBuilder Handheld Express(TM) and Borland® AppServer(TM) were introduced during the third and fourth quarters. Also during the fourth quarter, Borland acquired an e-services firm, Bedouin, Inc., which will form the core of Borland's newest business unit, Borland Developer Services. Borland Developer Services will leverage Bedouin's expertise in building and deploying e-services, such as team coordination, time tracking and customer relationship management, to deliver a new platform that will allow customers to build, deploy and manage applications via the Internet.
2001 Outlook
Borland's objectives for 2001 are:
-- to achieve 20% revenue growth;
-- to be the leader in cross-platform development, deployment and
management; and
-- to expand its global presence into high growth potential markets
including China, Korea, India and Latin America.
``We have an ambitious schedule of new product launches planned for 2001 in all of our product groups. We are also implementing an aggressive global growth plan to further expand our overseas sales, which already account for more than half of our total revenues. Additionally, we intend to capitalize on our strong OEM relationships and our excellent brand name recognition among Fortune 1000 companies to expand the ranks of Borland customers around the globe,'' Mr. Fuller said.
Borland's line of enterprise development, deployment and management products has positioned the Company as a leader in a market that a leading research organization projects to grow from $1.7 billion to $5.5 billion by 2003. A significant number of the Fortune Global 500 Telecommunications Companies and the Fortune Global 500 Financial Securities and Diversified Financial Companies already rely on Borland's existing enterprise products, including AppServer, AppCenter(TM) and Visibroker®, for their industry-leading security, legacy integration and scalability features. Further growth in this rapidly expanding market is expected to be achieved by leveraging Borland's existing OEM partnerships with leading e-business software brands and its position as the leader in the OEM space with its Visibroker J/C++ product.
Later this quarter, Borland plans to launch Kylix(TM), the first visual development environment for the Linux® operating system. Kylix is based upon a new technology, the Component Library for Cross-Platform development (CLX(TM)), which allows Delphi(TM), C++ and Visual Basic® developers to build applications for both Linux and Windows® servers and desktops using a common component architecture. With the introduction of Kylix, Borland will be the first company on the market to offer an industrial-strength RAD tool for the rapidly growing Linux market, enabling developers to quickly and effectively write large-scale applications for this emerging global standard. Borland believes that between one million and two million users of its highly successful Delphi and C++Builder(TM) development environments will make the move to this new tool for Linux application development.
Borland will also continue to be the leader in Java development, providing a powerful cross-platform environment for application development supporting all three of Sun Microsystems' Java platforms (J2EE(TM), J2SE(TM), and J2ME(TM)). Borland's award-winning JBuilder development suite, with a current annual growth rate of over 100%, is one of the leading cross-platform environments for creating pure Java end-to-end solutions. New releases of JBuilder will support an increasingly broad array of client and server computing platforms.
Borland also intends to focus on products that will support mobile application development and deployment. In addition to providing support for applications running on mobile devices, Wireless Application Protocol (WAP) server support will extend Borland's development and deployment product offerings. Partnerships with key mobile device manufacturers will also play a role in establishing Borland as a leader in this new and rapidly expanding market.
As the demand for cross platform applications grows, Borland is also developing environments capable of supporting connections from any number of different user interfaces or automatic processes. These ``network application services'' will be built using a variety of standards, including XML/SOAP, CORBA® and Java. Borland's technology initiatives will seek to add new products in all of the Company's business units to provide customers with flexibility and choice as they develop this new generation of applications within Microsoft Corporation's .Net(TM) initiative, Sun Microsystem's J2EE platform and open industry standards.
``We are excited about the many opportunities 2001 holds for us, and we are delighted to be operating under the Borland name once again as we pursue our ambitious growth agenda. By leveraging our unparalleled expertise in cross-platform development, deployment, and management solutions, we will enable our customers to move into the future without abandoning the past. We look forward to carrying on Borland's 18-year tradition of providing our customers with high performance implementation platforms for professional e-business solution providers,'' Mr. Fuller concluded.
Borland's fiscal year 2000 fourth quarter teleconference will be held at 7:30 a.m. (PT) / 10:30 a.m. (ET) today. To access the live Webcast, please visit www.streetevents.com or Borland's website at www.borland.com. |
