Certainly the favorite suitor BEA Software Inc must have been licking its lips as it analyzed the Scotts Valley, California-based company’s figures as a forecast of lower-than-expected first-quarter revenue as a result of acquisition costs has depressed the share price and left Borland with a stock market value of $854.8m. Despite a disappointing bottom-line performance, Borland is looking for revenue growth in the current year of at least 45% to $355m to $370m.
In the fourth quarter to December 31, net income fell 49.1% to $3.1m on revenue 13.6% higher at $67.1m. For the year, net income fell 24.9% on revenue that rose 10.3% to $244.6m.
While its Java business remains vital to the company, accounting for 38% of total revenue, it showed modest 4% growth in the fourth quarter. However, fat budgets in the defense and government sectors helped the enterprise business to grow 12% in the fourth quarter, and accounted for 19% of total revenue.
What has proved a disappointment is Borland’s rapid application development (RAD) business that, while accounting for 24% of total revenue, showed no growth. However, the company is optimistic about its services business, which accounted for 16% of total revenue and showed 19% growth in the fourth quarter.
With cash and equivalents of $296m, there are few limitations to Borland’s current acquisitive strategy, although this aggressive hunter may end the year as prey.
Source: Computerwire
