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Borland Earnings Improve As Silicon Graphics Struggles
(04/21/98; 5:03 p.m. ET)
By Larry Dignan, TechInvestor
Borland International beat Wall Street estimates by a
penny, but Silicon Graphics reported a hefty loss as
both companies reported earnings Tuesday.
The Scotts Valley, Calif., company reported first
quarter operating earnings of $1.6 million, or 3 cents a
share, compared with a loss in the same quarter a year
ago.
In the same quarter a year ago, Borland [BORL]
reported a loss of $21.8 million, or 92 cents a share.
Including acquisition and other charges, Borland
reported a loss of $13.4 million, or 27 cents a share.
The company took a restructuring and acquisiton
charge of $19.3 million and a tax gain $3.8 million.
Borland acquired Visigenic Software in the quarter.
Borland reported first quarter sales of $46.5 million,
compared with sales of $43.4 million a year ago, a gain
of 7 percent. The sales include revenue from Visigenic.
On a stand-alone basis, Borland reported sales of $37
million.
Borland had $93.8 million in cash at the end of the
quarter.
"While external factors relating to the economic crisis in
Japan resulted in a slowdown of our sales in that region,
we were able to closely manage our expenses and meet
our bottom-line objectives," said Del Yocam, Borland's
chairman and CEO.
Silicon Graphics [SGI] did not have as much luck with
its bottom line.
The Mountain View, Calif., company reported a third
quarter operating loss of $68 million, or 36 cents a
share, on revenue of $708 million, down 22 percent
from a year ago. Including restructuring charges, Silicon
Graphics reported a loss of $153 million, or 81 cents a
share. The results were in line with Wall Street
estimates.
Silicon Graphics took a third quarter charge of $114
million for restructuring. In the third quarter a year ago,
the company reported a profit of $11 million, or 6 cents
a share.
"We are aggressively focused on executing the strategic
plan we outlined," said Richard Belluzzo, CEO. "We're
taking the steps that will enable Silicon Graphics to
return to long-term growth and profitability." |
