Borland Software announced preliminary results for the first quarter ended March 31, 2005.

Based on preliminary data, Borland expects to report total revenue in the range of $70 to $72 million, license revenue of $42 to $44 million, a GAAP net loss per share of ($0.03) to ($0.01), and Non-GAAP earnings per share of $0.01 to $0.03. The Company’s previous guidance was for total revenue of $77 to $81 million, GAAP earnings per share of $0.03 to $0.05 and non-GAAP earnings per share of $0.07 to $0.09.

Borland experienced slower closure rates in both the U.S. and Europe, particularly for large-scale transactions, combined with a weaker than expected spending environment. Additionally, the Company noted a greater than anticipated decline in revenue from JBuilder, its Java IDE offering.

Based on a preliminary analysis, the Company expects second quarter revenues to be flat to slightly up as compared to first quarter revenue. In the second quarter, the Company plans to undertake restructuring efforts around underutilized facilities and selected management positions, but does not currently plan to effect a reduction in headcount or other significant cost reductions.

“While we are disappointed with our results for the first quarter, we continue to believe strongly in our market opportunity,” commented Dale Fuller, President and CEO of Borland. “Transforming our go-to-market efforts toward true enterprise solution selling is a long-term proposition, and while we have made progress, I am frustrated with this setback on our road to growth in revenue and earnings. There is clearly room for improved execution, particularly in the U.S. where we have recently made regional management changes; however, we believe fundamentally in our value proposition to customers and the ability of our products to achieve that value.”

Murdok | Breaking eBusiness News
Your source for investigative ebusiness reporting and breaking news.