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BORLAND FACES ANOTHER SHAKE-UP AS LOSSES CONTINUE TO MOUNT

Borland International Inc’s natural shrinkage continued yesterday but the troubled Scotts Valley, California developer tools company managed to bring in third quarter figures slightly ahead of its last month’s profit warning (CI No 3,064). Borland turned in third quarter net losses of $29.4m, or $0.81 per share, which comes after an $11.9m restructuring charge for the 125 job losses announced (CI No 3,023). Without the charge the per share figure would be $0.48. The company had expected anywhere between $0.52 and $0.62. Revenues in the quarter were down 34% at $36.8m. New chairman and chief executive Delbert Yocam, who came on board only on December 2 last year, reckons the next few quarters, featuring three new product launches, will be crucial for the company’s future. But the future looks ominous and the sound of axes falling will soon be heard in Scotts valley if Yocam’s closing remark is anything to go by: the company needs to dramatically adjust its cost structure, he said, before adding I am currently preparing programmes for reducing costs and growing revenues. Chief financial officer Paul Emery said plans are being finalized in this, the fourth quarter for a strategic turnaround which should begin during the first quarter of fiscal 1998. The new products are C++Builder, Delphi 97 and JBuilder for Java. The first of those will be out later this quarter. Net losses for the nine months to December 31 were $65.5m, after a $13.0m restructuring hit, against profits last time of $7.8m, including the above hit, on revenue that was down 35% at $114.2m.

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CBR Staff Writer

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