Content provided in partnership with

Business Services Industry

Borland Reports First Quarter 2008 Financial Results and Announces Agreement for Sale of CodeGear Unit

Business Wire, May 7, 2008

Company Hits Transformation Milestone, Reaffirms 2008 Revenue and Profitability Expectations for Enterprise Segment

AUSTIN, Texas -- Borland Software Corporation (NASDAQ:BORL), the global leader in Open Application Lifecycle Management (ALM), today announced preliminary financial results for the first quarter ended March 31, 2008. Borland also announced today a definitive agreement to sell the assets of its individual developer tools unit, CodeGear, to Embarcadero Technologies. The purchase price for CodeGear is expected to be approximately $23 million. Borland will also retain CodeGear's accounts receivables with an approximate value of an additional $7 million. The transaction is expected to close by June 30, 2008.

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

For the first quarter of 2008, Borland reported total revenue of $58.3 million, GAAP net loss of $22.3 million, or $0.31 per share, and non-GAAP net loss of $4.0 million, or $0.05 per share. GAAP net loss included an impairment charge of $13.3 million in CodeGear goodwill, $1.6 million in stock-based compensation, $2.2 million in amortization of intangible assets, and $1.3 million in restructuring expenses.

Revenue for ALM products and services for the first quarter of 2008 was $32.4 million. Deployment (DPG) products and services revenue was $13.7 million and CodeGear (IDE) products and services revenue was $12.2 million.

"Borland is in the midst of a multi-year transformation aimed at creating a growing, profitable, innovative leader in the ALM market," said Tod Nielsen, president and CEO of Borland. "Today we achieved a significant milestone by signing an agreement to sell CodeGear. Upon deal closing, Borland will be able to accelerate cost reduction initiatives which will improve our strategic and operational performance."

2008 Business Outlook

Management maintains previously set expectations for the Enterprise business unit (ALM and DPG) set in February. Enterprise revenue is expected to be in the range of $180 to $200 million while achieving sustainable non-GAAP profitability in the second half of 2008. Upon completion of the CodeGear divestiture, Borland is expecting to provide updated GAAP and non-GAAP profit/loss ranges.

Conference Call

Borland will host a conference call and live webcast at 7:00 a.m., Central Time, today. To access the conference call, dial 800-366-3964 for the US or Canada and 303-262-2075 for international callers. The webcast will be available live on the Investor Relations section of the Company's corporate website at www.borland.com. Listeners are reminded to access the webcast at least 30 minutes prior to the scheduled time to download any necessary audio or plug-in software. An audio replay of the call will also be available beginning at approximately 9:00 a.m. Central Time on May 7, 2008 until 11:59 p.m. Central Time on June 7, 2008, by dialing 800-405-2236, or 303-590-3000 for international callers, and entering passcode 11113646#.

About Borland

Founded in 1983, Borland (NASDAQ:BORL) is the leading vendor of Open Application Lifecycle Management (ALM) solutions - open to customers' processes, tools and platforms - providing the flexibility to manage, measure and improve the software delivery process. To learn more about maximizing the business value of software, visit http://www.borland.com.

Borland and all other Borland brand and product names are service marks, trademarks or registered trademarks of Borland Software Corporation or its subsidiaries in the United States and other countries. All other marks are the property of their respective owners.

Forward-Looking Statements

Statements made in this release that are not historical facts are "forward-looking statements" and accordingly involve risk and uncertainties that could cause actual results to differ materially from those described in this release. Forward-looking statements include, for example, all statements relating to projected financial performance (including statements involving projection of revenue, income including income (loss), earnings including earnings (loss) per share, capital expenditures, dividends, capital structure, or other financial items), the plans and objectives of management for future operations, products or services; and future performance in economic terms or other any other measures.

The potential risks and uncertainties that could cause results to differ materially include, among others, our ability to predict revenue and control expenses, and our ability to grow our ALM business or achieve profitability as planned. These and other risks are detailed in Borland's periodic reports filed with the Securities and Exchange Commission, including, its latest Annual Report on Form 10-K, and its latest quarterly report on Form 10-Q, copies of which may be obtained from www.sec.gov. Borland does not intend to update this information to reflect future events or circumstances unless required by law.

Non-GAAP Financial Measures

The attached press release and tables include non-GAAP financial measures. Borland's management uses non-GAAP financial measures in assessing the performance of Borland's ability to develop, sell and market products and services ("Ongoing Operations"). They are also used for planning and forecasting in future periods. Non-GAAP financial measures also facilitate internal comparisons to Borland's historical operating results. Borland has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative results provides consistency in its financial reporting that benefits investors. Non-GAAP financial measures are computed using consistent methods from quarter to quarter and year to year. These non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be viewed in conjunction with the consolidated financial statements prepared in accordance with GAAP.

Business Services Industry

Borland Reports First Quarter 2008 Financial Results and Announces Agreement for Sale of CodeGear Unit

Business Wire, May 7, 2008

Find Research Guides for:

Find Featured Titles for: Arts

Most Popular Articles in Business

Most Popular Publications in Business