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Technology Stocks : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: MENSO who wrote (6669)	10/21/1997 7:49:00 PM
From: Jatin Kadakia	Read Replies (1) \| Respond to of 10836

Wow! Hope CEOs of all companies that I hold stock in talk like this and I can retire! This guy has some guts and confidence. Regards, JK -------------------------------- Tuesday October 21 7:06 PM EDT Borland CEO says profits sustainable SAN FRANCISCO, Oct 21 (Reuters) - Borland International Inc chairman and chief executive Del Yocam said that its profitability is ''absolutely'' sustainable and that the company's goal is to achieve revenue growth of 20 percent. Earlier Tuesday, the Scotts Valley, Calif.-based software company reported its second consecutive quarter of profits and third consecutive quarter of revenue growth. Analysts were looking for Borland to report break-even earnings for the second quarter and Borland reported a profit of $0.03 a share. ''We hope over the long term to return Borland to 20 percent (revenue) growth year-over-year,'' Yocam told Reuters. Yocam said that Borland's new products and strategy aimed at selling software development tools to the corporate enterprise market will help fuel its growth going forward. ''We have a new strategy,'' Yocam said. ''We can provide the tools and technology for them (corporate users) to begin to access their legacy information.'' Yocam said the company has revamped its sales force, recruited a new management team, established more partnerships, and upgraded and delivered new products as part of its plan to return to growth. ''You can just watch it happening quarter by quarter,'' he said.

To: MENSO who wrote (6669)	10/21/1997 8:12:00 PM
From: i-node	Respond to of 10836

Are you sure it is really Cost-of-SALES that you are talking about ? Don't know quite what you mean, but it is the cost of software development. Of course, we don't know what portion in any given month is cost pertaining to [for example] documentation enhancement of existing product (toward the next release) or handling bugs discovered in recently released product, vs. prospective development efforts. But at any rate, over the course of a year, it is essentially "cost of sales".

To: MENSO who wrote (6669)	10/21/1997 8:13:00 PM
From: shane forbes	Read Replies (6) \| Respond to of 10836

Listened to conference call. Points: 1. Overall Dale was very pleased with this q. Turnarounds take 6-8 quarters and he felt BORL was executing well. 2. Major revenue is still from C++ and Delphi. He considers JBuilder to be very big and pointed out how in 2-3 years down the road people would look back and consider JBuilder a key reason why the company turned itself around (paraphrased). 3. JBuilder sales going very well - in first few days of product realease Dale said product was sold out and consequently reordered. If Delphi moved the company two and a half years ago and we believe the significance of JBuilder I think we can see a 30+% increase in reveneue next year (conservative). 4. There is still very little coverage from analysts - only 3 calls (I consider this a good thing - for now - I'm still in accumulating mode). One from UBS, one from Putnam and one other I did not catch. 2 congratulations - "good job" etc. 5. Did detect sense that the Putnam guy was fishing for sources of revenue growth going forward. Suggested 40-45 million was breakeven. CEO pointed out - JBuilder (though admitted this was linked to JAVA growth), enterprise/c-s emphasis (key), Midas/Entera(sp?)... 6. Expenses well under control suggested by one of the analysts. DSO at 45 days - "good". 7. 52% US and 48% international (I think these are the right numbers - close enough!) - Dale said this was good considering Europe vacations (this European part sounded a bit flaky to me!) 8. Expects JBuilder C/S to be a big hit. Expected release - NOv. timeframe. 9. Though Dale felt "cautiously optimistic" about oct-dec.'97 q, he did ask the analysts to be "conservative" in their estimates. Another very good thing IMO. Main reason was that turnarounds take time - 6-8 quarters. 10. Interesting hint of progress of company - Dale said he'd like to have a sales staff 2-3 times bigger than the current staff. But he was not rushing into this - because of the new emphasis on the corporates side (55% of this q sales) they want to make sure they do the right thing. 11. No questions or comments about increasing competition etc - a good thing! 12. Emphasized the partnerships with IBM, MSFT (said though people would regard them as competitors MSFT realizes the importance of BORL to developers - if true, and I think it is, because MSFT is involved in the "JAVA wars" and needs good windows development tools which BORL has, BORL is in good shape. Can't see why MSFT would focus on crushing BORL at this stage - MSFT has to worry about ORCL and JAVA. Quite different from 5 years ago!), ORCL, SAP, Netscape... ---- Overall the call went quite well I thought - perceived a quiet confidence though perhaps tempered with a dose of caution & consevatism. The key issue is revenue growth and how will that come about. If JAVA plays out (and if SD'97 was any indicator there is oodles of interest) BORL will do extremely well over the next year at least I think; if for some reason JAVA falls flat BORL might still do quite well though clearly not as well as case 1! RE: valuations who knows - because earnings are changing P/E is not the right indicator. Probably should look at some multiple of sales.. I think because of proper expense controls over the n/t profitability looks okay... Enjoy. The call was quite short - interested to hear other's observations on the tone and substance of the call.