Borland International on a roll

The software toolmaker beats Wall Street estimates for the second quarter in a row.

Mike Ricciuti Staff writer, CNET News
Mike Ricciuti joined CNET in 1996. He is now CNET News' Boston-based executive editor and east coast bureau chief, serving as department editor for business technology and software covered by CNET News, Reviews, and Download.com. E-mail Mike.
Mike Ricciuti
2 min read
Borland International (BORL) is on a roll.

The software-development tool maker beat Wall Street estimates for the second quarter in a row, posting third-quarter profits of $2.8 million, or 6 cents a share, for the quarter ended December 31, 1997. That compares with a loss of $29.4 million, or 81 cents per share, reported for the same period a year ago.

The company was expected to report earnings of 4 cents per share, according to First Call's consensus of analysts' estimates.

Borland reported revenues of $43 million for its fiscal third quarter, up 17 percent from revenues of $36.8 million reported a year ago.

Executives at the company said the revenue surge came primarily from strong sales of its client/server, Internet, and enterprise development tools, which made up 56 percent of net revenues. That compares with 37 percent a year ago.

Borland CEO Del Yocam credits the company's new-found ability to land big customers for much of the growth. "More and more revenue is coming from enterprise customers. The Visigenic acquisition will put meat behind that strategy," said Del Yocam, Borland's CEO.

The company is in the process of acquiring Visigenic Software, a developer of ORB (object request broker) software, the middleware needed to glue component applications and database software together into working business systems. Shareholders for both companies are expected to meet next month to approve the deal, announced last November. Approximately 12.5 million shares of Borland stock, currently worth roughly $150 million, will be issued at the close of the transaction.

The companies plan to build application server software that will combine Visigenic's VisiBroker ORB with Borland's JBuilder Java development tool. The new software is expected to be unveiled this quarter.

Borland's vice president of marketing Zack Urlocker said the introduction of the company's JBuilder Java-based development tool has helped Borland win big-name accounts looking for IS-centric Java tools, such as MCI Communications and U.S. West.

New products slated for introduction this quarter include an update to Borland's Entera middleware, version 3.0 of the company's C++ Builder development tool, and a new product called AppCenter for application management, said Urlocker.

Last week, Borland spun off its U.S. sales and marketing organization as an independent company. The new company, called Frontline Now, will have exclusive rights to represent and market Borland's software development tools--including Delphi, C++Builder, and Jbuilder--to distributors and resellers in Borland's two-tier sales channel in the United States.

Borland said the move was aimed at increasing focus on and marketing of its enterprise development market.

Frontline has approximately 40 employees who previously were part of Borland's channel sales and marketing organization.

Borland today appointed Kristen S. Brown to the newly created post of vice president of business development. Brown, a former Oracle executive, will be responsible for developing and maintaining Borland's strategic business relationships, the company said.