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Borland Reports 1996 Fiscal Year-End and Fourth Quarter Results; Borland Caps Fiscal Year with Fourth Quarter Revenue Growth and Profits.

SCOTTS VALLEY, Calif.--(BUSINESS WIRE)--April 25, 1996--Borland International Inc. today announced results for the fourth quarter and year-end of fiscal 1996, which ended March 31, 1996.

Revenues for the fourth quarter of fiscal were $62.9 million compared with revenues of $55.5 million in the fourth quarter of fiscal 1995. Net income for the fourth quarter of fiscal 1996 was $8.0 million or $.24 per share, compared with a net loss of $51.0 million or $1.86 per share in the fourth quarter of the previous year. These results reflect the fourth consecutive quarter of profitability since Borland restructured its operations in January 1995 and focused its strategy on software developers.

Revenues for fiscal 1996 were $215.2 million compared with revenues of $254.1 million for the prior fiscal year. Net income for fiscal 1996 was $14.3 million or $.45 per share compared with a net loss of $12.2 million or $.43 per share in fiscal 1995.

"Fiscal 1996 was an extremely successful year for Borland," said Borland's President and CEO, Gary Wetsel. "We focused our efforts on software developers, saw a 170 percent growth in our client/server business, and established a leadership position in the Internet development tools market."

Included in the results for the fiscal fourth quarter of 1996 is the recognition of $4.4 million of revenue previously deferred under the Paradox license agreement, which resulted from the sale of the Novell Office suite of products by Novell to Corel Corporation. Included in the results for the fourth quarter of fiscal 1995 is a restructuring charge of $50.0 million.

Included in the fiscal 1995 results is a $109.9 million non- operating gain on the sale of Quattro Pro, a restructuring charge of $50.0 million, revenue of $24.5 million from the sale of Paradox licenses to Novell, a one-time charge for purchased technology of $16.2 million related to the Company's acquisition of ReportSmith, and a benefit of $3.1 million related to the favorable resolution of certain obligations of Ashton-Tate Corporation. Excluding these transactions, Borland would have reported a pre-tax loss of $80.7 million in the prior fiscal year.

Borland: Making Development Easier

Borland International Inc. (NASDAQ:BORL) is a leading provider of products and services targeted to software developers. Borland is distinguished for its high quality software development tools, which include Delphi, Delphi Client/Server Suite, Borland C++, Visual dBASE, Paradox, ReportSmith and InterBase. Borland's award-winning products are supported through comprehensive programs for small- and large-sized software developers, corporate developers, value added resellers and system integrators. Founded in 1983, Borland is headquartered in Scotts Valley, California. -0- Note to Editors: Copies of previous Borland press releases and additional corporate and product information are available on Borland's Internet World Wide Web (WWW) site, at http://www.borland.com. -0-
 BORLAND INTERNATIONAL INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except per share data, unaudited)


 Three Months
 Ended March 31,
 1996 1995
 ------- -------
Net Revenues (A) $ 62,860 $ 55,502
Cost of revenues 8,015 11,099
 ------- -------


Gross profit 54,845 44,403
 ------- -------


Selling, general and administrative 33,569 43,854
Research and development 12,977 10,795
Restructuring and other (B) - 50,020
 ------- -------


 Total operating expenses 46,546 104,669
 ------- -------
Operating profit (loss) 8,299 (60,266)


Interest income, net and other 1,248 1,206
 ------- -------


Income (loss) before income taxes 9,547 (59,060)
Income tax provision (benefit) 1,560 (8,084)
 ------- -------
Net income (loss) $ 7,987 $(50,976)
 ======= =======




Net income (loss) per common and
common equivalent share $ .24 $ (1.86)
 ======= =======
Weighted average number of common and
 common equivalent shares outstanding 33,684 27,375
 ======= =======




(A) The sale of the Novell Office suite of products by Novell to
Corel Corporation resulted in the recognition of $4.4 million of
revenue previously deferred under the Paradox license agreement
during the quarter ended March 31, 1996.


(B) Restructuring and other for the quarter ended March 31, 1995
represents restructuring charges of $50.0 million.




 BORLAND INTERNATIONAL INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except per share data, unaudited)




 Years Ended
 March 31,
 1996 1995
 -------- --------
Net Revenues (A) $ 215,206 $ 254,064
Cost of revenues 31,228 53,418
 -------- --------
Gross profit 183,978 200,646
 -------- --------


Selling, general and administrative 125,258 198,720
Research and development 45,086 61,760
Restructuring and other (B) - 63,070
 -------- --------
 Total operating expenses 170,344 323,550
 -------- --------
Operating profit (loss) 13,634 (122,904)


Interest income, net and other 3,787 3,589
Gain on sale of Quattro Pro (C) - 109,927
 -------- --------


Income (loss) before income taxes 17,421 (9,388)
Income tax provision (benefit) 3,136 2,789
 -------- --------
Net income (loss) $ 14,285 $ (12,177)
 ======== ========


Net income (loss) per common and
common equivalent share $ .45 $ (.43)
 ======== ========
Weighted average number of common and
 common equivalent shares outstanding 31,861 27,994
 ======== ========




(A) Net revenues for the fiscal year ended March 31, 1996 and March
31, 1995 include $7.9 million and $27.1 million, respectively, related
to the one million Paradox licenses sold to Novell in June, 1994.
The sale of the Novell Office suite of products by Novell to Corel
Corporation resulted in the recognition of $4.4 million of revenue
previously deferred under the Paradox license agreement during the
quarter ended March 31, 1996.


(B) Restructuring and other for the fiscal year ended March 31, 1995
represents the restructuring charge in the fourth quarter of $50.0
million, a $16.2 million write-off of purchased technology related to
the acquisition of ReportSmith and a benefit of $3.1 million related
to the favorable resolution of certain obligations of Ashton-Tate
Corporation. Such obligations had been fully reserved at the time of
the Company's acquisition of Ashton-Tate.


(C) The net gain from the sale of Quattro Pro product line is
comprised of proceeds of $145 million from the sale, less Paradox
licenses of $35 million.




 BORLAND INTERNATIONAL INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (in thousands, unaudited)




 March 31,
 1996 1995
 ASSETS -------- --------


Current assets:
 Cash and short-term investments $ 90,146 $ 69,809
 Accounts receivable, net of allowances 34,151 18,646
 Inventories 1,599 5,393
 Other current assets 7,321 10,402
 -------- --------
 Total current assets 133,217 104,250
Property, equipment, net of accumulated
depreciation and amortization 114,612 129,832
Other non-current assets, net 7,758 10,914
 -------- --------
 Total Assets $255,587 $244,996
 ======== ========


 LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
 Accounts payable and accrued expenses $ 42,563 $ 72,914
 Income taxes and other 26,891 28,183
 -------- --------
 Total current liabilities 69,454 101,097
Long-term debt and other 14,555 20,895
 -------- --------
 Total liabilities 84,009 121,992
 -------- --------




Stockholders' equity:
 Common stock 312 273
 Additional paid-in-capital 279,083 243,311
 Retained deficit (112,015) (126,300)
 Cumulative translation adjustment 4,198 5,720
 -------- --------
 Total stockholders' equity 171,578 123,004
 -------- --------
 Total liabilities and stockholders'
 equity $255,587 $244,996
 ======== ========
-0-


CONTACT: Borland International Inc.

Steve Grady, 408/431-1621 (media)

sgrady@wpo.borland.com

Dawn Morse, 408/431-1525 (financial)

dmorse@wpo.borland.com
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