The company yesterday recorded a GAAP net loss of $5m for the third quarter to June 30 compared to a profit of $4.7m for the same quarter last year, on revenue that grew 27% to $76.3m.
Borland also reported a loss per diluted share of $0.06 compared to a profit of $0.07, meeting analyst expectations. Borland closed its loss on a sequential basis, from $17.7m or $0.22 a share on revenue that grew 3%.
The figures included charges related to restructuring, amortization of intangible assets, acquisitions and other expenses. Borland announced a trio of acquisitions last October, the company’s fourth quarter for 2002, which it has been digesting structurally and in terms of personnel.
For the year-to-date, Borland reported a net loss of $22.7m, down from a $9.3m profit, on revenue that grew 28.9% to $150.6m. Loss per share is $0.28 down from a $0.12 profit.
Company chief executive Dale Fuller yesterday declared himself pleased with Borland’s latest results, calling it a solid financial performance, but warned customers are continuing to resist a return to large software purchases.
He added Borland faces a challenge from free software tools, including the IBM-backed Eclipse open source framework for Java. He did not provide specifics of how free software is affecting Borland’s business, but noted competition with IBM adding that Eclipse can be brought into customers via IBM’s Global Services business delivering WebSphere Studio, which competes with Borland’s JBuilder.
Fuller said free software could also be picked-up by project managers inside of a company, who are looking to manage their projects’ budgets and cut costs.
Borland’s chief executive dubbed free tools Trojan software with a free up front cost but which restrict customers’ choices in the long-term and have hidden long-term costs in support and migration.
Source: Computerwire
