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Borland to miss Q1 targets
Slow closures blamed
Borland Software has warned that it will likely miss its targets for the first quarter of 2005, and is now predicting revenue of between $70-$72m for the period, and a net loss of between one and three cents per share.
The company had expected to report revenue between $77-$82m, and earnings of up to five cents per share.
The company excused its performance saying deals in the US and across Europe were slower to close than it anticipated. This trend was even more prevalent in larger scale transactions, the company said.
Dale Fuller, President and CEO of Borland said he was disappointed with the results.
"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," he commented. "There is clearly room for improved execution, particularly in the US where we have recently made regional management changes."
Borland says next quarter will be much the same, or slightly up, compared to Q1's performance. It says it is not currently planning any headcount reductions, but is planning to "undertake restructuring efforts around under utilised facilities and selected management positions" during Q2.
Shares fell around three per cent at the close of trading yesterday. The full results will be published on 21 April. ®