Inprise Corp., formerly known as Borland, yesterday said it will divide the company into two business units. The announcement followed the company's fiscal earnings report, which showed flat revenue growth.
The company will be divided into an enterprise division that will retain the name Inprise and a developer unit called Borland.com. Inprise will consist of the application server business and services, while the development of technologies such as C++, J Builder, Interbase, and Midas will become part of Borland.com. The reorganization will result in a 20% reduction of the company's 950-employee workforce. The remaining employees will be divided almost equally between the two divisions.
The separation will help the company focus on branding its products separately, says Del Yocam, chairman and CEO of Inprise. "We haven't put forth the marketing and development of our developer products," Yocam said. "This is a way to help us focus on the customer within both businesses, and a way to get the marketing message simplified for those divisions."
For the fourth quarter of 1998, Inprise saw a 3% revenue loss to $48.1 million, compared with $49.7 million in the same period of 1997. The company posted gains in net income of 379% to $3.5 million, or 6 cents per share. For the year, revenue was reported at $189.1 million, showing no growth over last year's revenue. Net income for the year was $8.3 million, or 14 cents per share, vs. a net loss of $48.4 million, or $1.01 per share, for 1997.
Yocam said the slipping of the release of C++ Builder from the fourth quarter of 1998 to the first quarter of 1999 led to the flat revenue for 1998.