Borland reported a net loss of $9.8 million for the quarter, or 31 cents per share--slightly better than the $11 million loss it had predicted, and beating the First Call consensus of a 37 cents per share loss. The loss compares to net income of $2.6 million or 8 cents a share one year ago. Second quarter revenues dropped 29 percent, to $36.4 million, compared to $51.3 in the prior year.
News analysis: Can Borland survive?|
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Borland isn't the only vendor feeling information systems' pain. "I think that Borland is not alone as a software company not having a good year. Many companies are having difficulties and have lost money. The problem is the rapid pace of change and the fact that customers are confused or do not know what to implement," said Jean Orr, a senior analyst with A.G. Edwards.
The company said it will forge ahead with plans to acquire middleware maker Open Environment next month. The acquisition is slated to close on November 18, following an OEC shareholders' meeting. Borland plans to use the technology to build multitier development capabilities into its Delphi, IntraBuilder, and other development tools.