Borland Reports Financial Results for the Second Quarter of 2007

Borland Reports Financial Results for the Second Quarter of 2007

Borland Software Corporation (NASDAQ: BORL), the global leader in Open Application Lifecycle Management (ALM), today announced financial results for the second quarter ended June 30, 2007. For the second quarter of 2007, Borland reported total revenue of $63.4 million, GAAP net loss of $11.2 million, or $(0.16) per share and a non-GAAP net loss of $6.1 million, or $(0.08) per share. GAAP net loss includes $1.6 million in stock-based compensation, $2.2 million in amortization of intangibles and $1.3 million in restructuring expenses.

Revenue for ALM products and services for the second quarter of 2007 was $39.0 million, or approximately 62% of total revenue. Deployment products (DPG) revenue was $10.8 million and CodeGear (IDE) products and services was $13.6 million.

The Enterprise segment, which consists of ALM and DPG products, reported GAAP operating loss of $12.2 million and non-GAAP operating loss of $7.7 million and the CodeGear segment reported GAAP operating income of $1.3 million and Non-GAAP operating income of $1.9 million for the second quarter of 2007. Borland reduced its cash used in operating activities during the quarter to $4.4 million. The Company closed the quarter with cash and cash equivalents of $204.6 million.

“We continued to make good progress this quarter reducing costs and moving toward a healthy business focused on long-term profitable growth,” commented Tod Nielsen, president and CEO of Borland. “ALM revenue was solid and demand is encouraging, but we continue to work through execution issues in EMEA and saw a few important deals slip into future quarters.”

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