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By | Gavin Clarke 11th May 2006 02:16

Borland cuts hit overseas ops

Losses narrow

Borland Software has provided greater detail on where it expects the majority of its recently announced job cuts to fall, while announcing preliminary results for its first quarter.

The tools company, trying to re-position itself purely as a provider of application lifecycle management (ALM) software, said most of the 300 jobs cuts announced last week would be felt outside the US, in the 29 other countries in which it operates.

Chief executive Todd Nielsen told Wall Street analysts Borland is unable to afford the direct sales model required to push ALM under its current structure, and Borland would instead rely on a mix of channel and partners. He claimed Borland already has partnerships in place so the cuts, executed over the next few months, won't impact revenue.

Borland's chief executive said the cuts and a restructuring would result in a "focused, tight and efficient company targeting the enterprise." Executives will meet next month to assess opportunities in new markets and vertical sectors.

Also going, although it's not clear when, will be some 180 employees from Borland's 20-year-old tools business, which Borland said earlier this year it hoped to spin out. Borland claimed the spin out was "progressing quite well" having received a large amount of initial interest with a "number" of parties are engaged in due diligence.

Meanwhile, Nielsen announced revenue for the company's quarter to March 31 in excess of $69m and a reduced loss compared to the fourth quarter of fiscal 2005. He recommitted Borland to hit profitability during the fourth quarter of 2006.®

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