Company Hits Transformation Milestone, Reaffirms 2008 Revenue and Profitability Expectations for Enterprise Segment
AUSTIN, Texas - May 07, 2008 : 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.
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."
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