The news is not unexpected, given the number of companies that have reported that customers have stopped spending until the uncertainties caused by the Iraq war have passed. However, Borland’s shares dropped 10.1% on the news to $8.24.
While analysts had been expecting earnings of $0.02 a share, the Scotts Valley, California-based company has predicted a loss before exceptional items of $0.01 to $0.04 a share. On a GAAP basis, the loss will be $0.23 to $0.27.
The application development and modeling company now expects to report revenue of between $72m and $75m in the quarter to March 31, down from its original estimate of $77m to $83m. It pointed out that this still represents an increase of at least 26% on the same period last year.
CEO Dale Fuller said that while it is true that geopolitical instability disrupted the market, customer reluctance to close deals was more the result of underlying global economic weakness.
Last month Fuller said that Borland was on the lookout for acquisitions and the company expected to end the quarter with $210m cash and no long-term debt.
Source: Computerwire
