from wsj:
Tools-Developer Borland Plans To Change Name, Sets Up Services Arm
Dow Jones Newswires
NEW YORK - Borland International Inc., a maker of software-development
tools in the midst of a turnaround effort, Wednesday said it will
change its name to Inprise Corp. and form a professional-services
division to provide better support for its products.
The name change is subject to shareholder approval at a meeting set
for June 5. Borlan's (BORL) new symbol will be "INPR" if the change
is approved. Borland said the new division will integrate consulting,
training, and technical support resources world-wide.
Borland plans to group its development tools and other software into
a product called Inprise Application Server, which will be aimed at
big corporate accounts.
The Scotts Valley, Calif.-based company is best known for its largely
unsuccessful stint going head-to-head with Microsoft Corp. in the
commoditized database and spreadsheet markets. The company ended
up selling its Quattro Pro spreadsheet business to Novell Inc. in 1994.
Its mercurial founder and chairman, Philippe Kahn, jumped ship.
Now it is trying to reposition itself as a developer of customized
application development tools, particularly for the corporate, or
enterprise, market. Borland has struggled to stay in the black, and
last year had to cut some 30% of its work force.
Now, it sees computer services as a potentially winning hand. Chief
executive officer Delbert Yocam, a former Apple Computer Inc.executive
who replaced Gary Wetsel as CEO in 1996, earlier this week said the
company would set up the services division.
Moreover, Borland is looking to acquire some regional services
companies to bolster its exposure to this area. Yocam thinks these
moves will double Borland's services business, which he expects to
comprise one-fifth of the company's total revenues within 18 months.
At its current price of around $11, Borland's stock is nearly 50%
lower than it was in early 1996. And that's a 90% drop from its
all-time high of about $85 back in Borland's glory days of early 1992
- although the stock has gained more than 40% over the last three
months. Borland's price-to-sales multiple of 4.3 and price-to-book
ratio of 5.1 are less than half those of the industry, and its gross
profit margins of about 86% are at a three-year high.
But analysts say Borland has to integrate new products from its 1997
acquisition of Visigenic Software, a developer of connectivity software
tools. If the Yocam can generate solid revenue and earnings growth from
beefed-up computer services businesses, his company just might regain its
lost credibility on Wall Street.
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First SmartMoney, next Barron's, now wsj - all positive comments.
We'll see more accumulation. Go BORL/INPR !
later,
InSook Prasad |
