Borland has announced a US$14.1 million net loss for its first quarter ending June 30. The software company reported revenues of US$34.5 million for the quarter, down nearly US$20 million from its first quarter profits of US$53.8 last year.
Borland's losses would have been greater if it hadn't been for a US$2 million federal income tax benefit and US$900,000 of related interest income resulting from a settlement with the Internal Revenue Service. Excluding these benefits, the company's net loss would have been US$17 million.
"Borland is in transition and this has been going on longer than they expected," says Rana Mainee, a consultant at Inteco, an international consulting firm, in Woking, UK. "They expected to be turned around by now, but the demand for middleware just hasn't come through yet," mostly because of uncertainty about a corporate preference for Windows NT or Windows 95.
By the end of the year, however, "it will be a lot clearer that Windows NT will be successful at the corporate level," Mainee says. "There has been a lack of direction within the development community about where to invest and where to focus development. We'll see that clarified over the next six months."
The company, based in Scotts Valley, California, attributes the first-quarter revenue decline primarily to lower-than-expected US sales. Borland makes products and services for software developers, including Delphi, Borland C++, Visual dBASE, Paradox and InterBase. Further information about Borland is available at http://www.borland.com.