all,
10/21 16:10 Borland Reports Second Quarter Fiscal 1998 Results
Delivers Second Consecutive Quarter of Profitability
SCOTTS VALLEY, Calif., Oct. 21 /PRNewswire/ -- Borland International, Inc. (Nasdaq:
BORL) today announced results for its fiscal year 1998 second quarter that ended
September 30, 1997. Second quarter revenues were $42,500,000 compared with
revenues of $39,306,000 for the second quarter of the previous fiscal year. Second
quarter revenues were up eight percent over the second quarter of fiscal year 1997.
Year-to-date fiscal year 1998 revenues were $84,470,000, a nine percent increase over
revenues of $77,452,000 for the first half of fiscal year 1997.
Revenues from Borland's client/server, enterprise and Internet products continued to grow
as a percentage of the total revenues, making up 55 percent of total revenues in the
second quarter of fiscal year 1998.
Net income for the second quarter of fiscal year 1998 was $1,518,000 or $.03 earnings
per share. This compares with a net loss of $14,310,000 or ($.40) per share for the
second quarter of fiscal year 1997.
Year-to-date fiscal year 1998 net income was $1,597,000 or $.03 per share compared
with a combined net loss of $36,119,000 or ($1.00) per share for the first half of fiscal year
1997.
Included in the calculation of earnings per share for the three and six months ended
September 30, 1997 is an accretion of $383,000 or $.01 earnings per share to the
Mandatorily Redeemable Convertible Preferred Stock.
The balance of cash, cash equivalents and short-term investments as of September 30,
1997 was $83,472,000 compared with an ending balance as of June 30, 1997 of
$76,598,000.
"The positive results for both the first and second quarters of our fiscal year 1998 indicate
that the actions we took in the fourth quarter of last fiscal year continue to improve the
bottom line," said Borland chairman and chief executive officer Delbert W. Yocam.
"Our continued profitability and revenue growth are due in large part to our success in
shipping new products and updates to our existing products each quarter. We are
particularly pleased with the response to our JBuilder(TM) products that we shipped in the
second quarter as well as the continued improvement in corporate client/server,
enterprise and Internet products," Yocam added.
New Product and Programs
Borland announced in mid-September that it was shipping JBuilder Standard and
JBuilder Professional, second-generation tools built on Sun Microsystems' updated Java
Development Kit (JDK) 1.1. The JBuilder product family provides fast and easy JavaBean
component creation, a scalable database architecture, robust visual development tools,
and the ability to create 100% Pure Java(TM) platform-independent applications and
applets. The next member of the product family, JBuilder Client/Server Suite, is expected
in the current quarter ending December 31, 1997.
Borland's DataGateway(TM) for Java, a product designed to work with Java-based tools,
was also announced in the second quarter and became available this month.
DataGateway provides any 100% Pure Java application access to corporate databases
through industry-standard JDBC (Java Database Connectivity) interfaces. DataGateway
is being sold currently as a stand-alone solution but will be available with JBuilder
Client/Server Suite.
Borland continued to form industry partnerships during the second quarter. The company
announced that applications created with JBuilder will run seamlessly in Netscape
Communications Corporation's (Nasdaq: NSCP) Communicator Internet client software
suite. It also announced an alliance with SAP through which Borland will develop
Delphi(TM)/Connect for SAP. Additionally, Borland joined with IBM (NYSE: IBM) to
announce a combined R&D effort to optimize enterprise-wide Java application
development using JBuilder with IBM's "San Francisco" project.
Borland also announced it would work closely with IBM's AS/400 Division for the purpose
of providing Borland tools to build client/server applications for the IBM AS/400 series of
business computers. This AS/400 "Application Development Initiative" was announced at
the Borland Conference in July.
To this end, in September Borland shipped C++Builder/400 Client/Server Suite, a
C++-based application development tool that provides the AS/400 developer with the
power and control of the C++ programming language in a highly productive, visual
development environment. In addition, Borland signed a letter of intent with IBM to jointly
develop and deliver Java development solutions for the AS/400 and expanded its Partner
400 Program, designed to provide high-quality sales, marketing and support for AS/400
customers who are using Borland tools.
During the second quarter, the company also announced an update to its Entera(TM)
intelligent middleware product. This update enhances Entera's support for Delphi, ODBC
data connectivity, and Gradient/DCE on Windows NT. Borland also announced that it will
extend Entera's platform support with a new port to IBM MVS/Open Edition.
Information Network Strategy
"We have only just begun," Yocam said. "We plan to continue to deliver powerful
application development tools and technologies to help our customers build applications
for corporate Information Networks. These Information Networks will give corporations'
customers, partners and employees cross-platform access to valuable, real-time
information."
To help customers design, develop and deploy the new generation of corporate
Information Networks, Borland in the second quarter announced plans for the Borland
Business Solutions Program, which will expand the company's support for a wider range
of developers, value-added resellers and system integrator partners.
Yocam unveiled the company's Information Network strategy in July at the eighth annual
Borland Conference, which was attended by over 2,500 IT executives, software
developers, technologists and ISVs.
Borland: Making Development Easier
Borland International, Inc. is a leading provider of high-quality software products for
software application developers worldwide.
Borland is distinguished for its award-winning family of rapid application development
tools and scalable middleware technology for desktop, client/server, Internet/intranet, and
enterprise systems. The Company's products are supported through comprehensive
corporate and independent developer programs, value-added resellers, and systems
integrators. Founded in 1983, Borland is headquartered in Scotts Valley, California. For
more information on Borland, customers can visit Borland Online at
borland.com.
NOTE: Forward-looking statements in this release, including, but not limited to, those
concerning Borland's future financial performance, product availability dates, 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, 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, 10-Q, 8-K, and the Borland prospectus relating to the acquisition
of Open Environment Corporation.
Borland product names are trademarks of Borland International, Inc. Netscape, Netscape
Navigator, and the Netscape N logo are registered trademarks of Netscape
Communications Corporation in the United States and other countries. Other Netscape
logos and Netscape product and server names are also trademarks of Netscape
Communications Corporation, which may be registered in other countries. Java and all
Java-based trademarks are trademarks or registered trademarks of Sun Microsystems,
Inc., in the United States and other countries.
BORLAND INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
1997 1996 1997 1996
Net revenues $42,500 $39,306 $84,470 $77,452
Cost of revenues 6,375 7,559 12,731 16,457
Gross profit 36,125 31,747 71,739 60,995
Selling, general
and administrative 25,095 32,575 50,024 71,810
Research and development 9,905 14,679 20,481 27,859
Restructuring related
charges -- -- -- 1,083
Total operating
expenses 35,000 47,254 70,505 100,752
Operating profit (loss) 1,125 (15,507) 1,234 (39,757)
Interest income, net
and other 593 1,660 764 3,547
Income (loss) before
income taxes 1,718 (13,847) 1,998 (36,210)
Income tax (benefit) 200 463 401 (91)
Net income (loss) $1,518 $(14,310) $1,597 $(36,119)
Net income (loss) per
common and common
equivalent share(A) $.03 $(0.40) $.03 $(1.00)
Weighted average
number of common
and common
equivalent shares
outstanding 39,101 36,319 39,064 36,293
(A) Calculation of EPS for the three months and six months ended September 30, 1997
includes an accretion to the Mandatorily Redeemable Convertible Preferred Stock of
$383,000 or $.01 per share.
BORLAND INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
September 30, March 31,
1997 1997
(Unaudited)
ASSETS
Current assets $112,982 $79,029
Property and equipment, net
of accumulated depreciation
and amortization 103,244 106,563
Other non-current assets 6,992 7,110
Total assets $223,218 $192,702
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities $76,112 $80,318
Long-term debt and other 22,141 22,508
Total liabilities 98,253 102,826
Mandatorily redeemable
convertible preferred stock 24,265 --
Stockholders' equity 100,700 89,876
Total liabilities and
stockholders' equity $223,218 $192,702
SOURCE Borland International, Inc.
-0- 10/21/97
/NOTE TO EDITORS: Copies of previous Borland press releases and additional
corporate and product information are also available on Borland's Website at
borland.com./
/CONTACT: Steve Grady, 408-431-1621, or sgrady@corp.borland.com, or Denise
Franklin, 408-431-1525, or dfranklin@corp.borland.com, both of Borland International,
Inc./
/Web site: borland.com
(BORL)
CO: Borland International, Inc. ST: California IN: CPR SU: ERN |
