Borland has spun off two of its core technologies into independent operations, as the vendor announced larger than expected Q4 losses.
Last week, Borland spun-off its relational database business, Interbase, as a separate unit. Since the company bought the technology from Ashton-Tate five years ago, Borland has remained undecided whether the technology should remain within its business model. It also spun-off the US arm of its Open Environment Consultancy (OEC) and provided it with the startup funds to create an independent, privately owned company. Borland bought OEC in 1996.
The spin-offs came as Borland reported sales had halved to $37.2 million from $70.5 million and a net loss of $42.5 million for the quarter ended 31 March, compared with a profit of $7 million for the same period last year. Year-end revenues fell to $151.4 million from $245.1 million, with a net loss of $107.4 million compared with $14.7 million profit one year ago.
Borland attributed the shortfall to slowing sales of existing products as customers delayed buying decisions to wait for forthcoming product releases.
As part of the spin-offs, Netnumina Solutions is now owned by three former OEC consultancy team managers: Anish Dhanda, Greg Sabatino and Imran Sayeed. It will provide consultancy services to Borland customers for OEC?s Entera middleware product. The unit generated sales of about $5 million last year and has 15 staff.
Interbase will be headed by Jim Weil. The unit will focus on selling the database to OEMs and Vars, and try to build relationships with third-party development tool vendors.
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