Borland loses $42.5 million
The software development tool maker reports a 47 percent decline in revenues and a $42.5 million net loss for the quarter.
The software development toolmaker reported a net loss of $42.5 million, or $1.15 per share, for the quarter ending March 31, compared with net profits of $7 million, or 18 cents a share, a year earlier. However, the net loss includes a $23.1 million restructuring charge that includes cutting 30 percent of its workforce. Without the charge the company would have reported a loss of $19.4 million, or 62 cents.
Wall Street had been expecting the company to report a loss of 49 cents.
Revenues for the quarter fell to $37.2 million, down substantially from $70.5 million a year ago, as sales of existing products slowed and customers sat waiting for new product releases.
During the year, the company reported a loss of $108 million, or $2.96 a share, compared with profits of $14.7 million, or 40 cents a share, a year ago. Borland, which acquired Open Environment during the fiscal year, assumed $12.2 million in net losses during the first half of the year.
Revenues fell to $151.4 million for the year, down from $245.1 million a year ago.
Borland, continuing its search for fresh sources of revenue, has spun off its InterBase database group into a new division focused on selling the software to hardware makers for use as an embeddable database.
The InterBase subsidiary will be based near Borland's headquarters in Scotts Valley, California.
Borland will continue to market InterBase with its development tools, while the new subsidiary seeks licensing deals with OEMs and VARs, according to the company.
Embeddable databases are becoming a hot commodity. Other database companies, including Sybase and Oracle, have uncovered huge profits selling database software to makers of everything from gas pumps to portable digital assistants.
Sybase credits sales to hardware makers of an embeddable version of its SQL Anywhere database, with lifting the company's profits in its recent quarter.
Microsoft is also courting hardware manufacturers with a special embeddable version of its SQL Server database.
Borland is making the move in large part to mine new potential revenue streams to boost its bottom line. Last week, the company announced that it will spin off the consulting arm of its Open Environment division into a privately held company called NetNumina.