Borland Warns as CEO Leaves

The software maker forecasts a loss of 1 cent to 3 cents a share for the second quarter.
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Borland Software

(BORL)

after the bell on Thursday announced second-quarter results below prior guidance and the resignation of its CEO.

The Cupertino, Calif.-based company now forecasts total quarterly revenue in the range of $65 million to $67 million, license revenue of $37 million to $39 million and a net loss of 24 cents to 26 cents a share.

Borland's previous guidance was for total revenue of $70 million to $73 million and a net loss of 19 cents to 21 cents a share. Excluding items, the company forecast a loss of 1 cent to 3 cents a share for the quarter ended June 30, compared with its previous EPS guidance for break-even to a profit of 2 cents a share.

Analysts on average were looking for Borland to post earnings of 1 cent a share on $71.3 million total revenue.

In after-hours trading, shares of the company recently sank 70 cents, or 10.4%, to $6 on the news.

According to the applications software maker, an especially weaker-than-expected spending environment in Europe resulted in disappointing top-line performance. License revenue also fell short of expectations.

Additionally, Borland announced that Dale Fuller has stepped down as president and CEO of the company, effective immediately. Fuller will continue to serve as a member of the company's board of directors, which named Scott Arnold, Borland's executive vice president and chief operating officer, as interim chief executive officer.

Borland is due to report financial results on Aug. 2. Shares closed the regular session down 7 cents to $6.70.