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

To: Sam Scrutchins who wrote (8620)	1/20/1998 8:22:00 PM
From: Paul Corbett	Respond to of 10836

another 50 cent rise and the shorts will scurry to buy back

To: Sam Scrutchins who wrote (8620)	1/20/1998 9:45:00 PM
From: David Miller	Read Replies (2) \| Respond to of 10836

Here is the full "Frontline Now" announcement borland.com A question that occurs to me is whether this new arrangement will tend to increase, or decrease, Borland's revenue and/or profitability from its US channel. On the face of it, the same people who ran Borland's channel yesterday, will run it tomorrow. So the likelihood of an increase in revenue due solely to the outsourcing is low. They will have to operate on some kind of margin, so on a comparable unit basis, the revenue to Borland will also be lower. It is also likely to impact profitability. Time-and-place distributors (wholesalers, really) get by on a 7-10% retention rate. According to Mr Floisand, 50% of current Borland sales are through this avenue, let's say that's $11m per quarter (50% of ww revenue) for the sake of argument, which would be about $20m at SRP (est. channel price SRP0.55). If we assume FN buy at SRP0.48, giving them their 7% retention, the same unit volume will generate $9.6m, a reduction of $1.4m. I doubt if this would be balanced by the savings generated by the departure of 40 staff. I may have missed it, but who exactly owns Frontline Now? Could be a significant factor in their ability to attract additional sources of supply. It will be interesting to hear the post-results discussion on this. Will anybody here be taking notes? david

To: Sam Scrutchins who wrote (8620)	1/21/1998 7:35:00 AM
From: david thor	Respond to of 10836

<It looks as if Borland is laying the groundwork with this string of announcements to lead up to its earnings release (which hopefully will occur on Thursday since it wasn't made today) and perhaps the earnings release of Visigenic and more word on the merger. > Sam, Borland did a good job of answering the questions I had about their sales and marketing changes. Over the weekend, I visited a local computer "superstore" just to catch up on what was new. Borland's right; competition at the retail level must be a real distraction. Their restructuring addresses the independent developer in a way that seems reasonable. Regards, Dave