Borland International Inc confounded Wall Street, or at least those there that are still watching, with its first profitable quarter since March last year. Analysts had been expecting losses of about $7.4m; instead the Scotts Valley, California company managed to edge into the black with first quarter net profits of $79,000. The balance sheet was also boosted by the completion of a $25m of private equity financing, which together with the exercising of employee stock options helped boost the cash line to $76.6m at the end of the quarter, compared to $54.4m at the end of March. Borland is embroiled in a legal battle with Microsoft Corp alleging unfair competition against Redmond. Borland’s suit charges Microsoft with hiring Borland employees with the express intention of damaging its ability to compete with Microsoft. It’s lost 34 of its most prominent software architects to Microsoft in 30 months. Borland reduced its workforce without Microsoft’s help in February to the tune of 30% as part of chief executive Dwight Yocam’s plan to get the company back into the black, which he has achieved ahead of his plan, but only just. Provided the company uses its money wisely and doesn’t impetuously jump at the first potential acquisition it sees, as it appeared to with Open Environment Corp in May of last year. That acquisition cost it dearly as it tried to expand too quickly. It also lead to the departure of Yocam’s predecessor, Gary Wetsel.
