Borland president and CEO Gary Wetsel was forced to resign from the software firm last week after the company revealed it expects to turn in a massive loss of between $0.53 and $0.56 per share on sales of about $35 million for the quarter ended June 30. In the same period last year, Borland earned $2.8 million on turnover of $53.7 million.
The firm said it had realised too late that the channel was stuffed with stock, following very low demand for its Delphi software.
Matthew Price, Borland UK sales and marketing director, claimed the UK had not suffered. 'The revenue drop was solely in the US. Internationally, we had our best period in the last five quarters.'
Borland is hoping a series of Internet products, including Latte, its visual development tool for Java due out this year, will boost future sales.
Rana Mainee, consultant for market research firm Inteco, said: 'An indirect cause was the fact that investment in applications was lower than expected because Windows 95 was not the huge success everyone had hoped.
'When a company such as Microsoft dominates, and things don't go as expected, suppliers in the food chain like Borland suffer. Besides, the market has reservations about a company that suddenly went from being a major player to a component player. They need to hype up their technologies better.'
Borland chairman William Miller will take over until a replacement for Wetsel is found.
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