Paul Krill
Editor at Large

Borland CEO Fuller steps down

news
Jul 8, 20052 mins

Company says revenues are falling short

Borland Software CEO Dale Fuller has stepped down, to be replaced on an interim basis by Executive Vice President and COO Scott Arnold.

The  Fuller resignation, announced late on Thursday afternoon, comes on a day when the company announced preliminary financial results that would have the company registering a net loss per share of 24 cents for the second quarter that ended June 30. Quarterly revenues are expected to be in the range of $65 to $67 million, with license revenue of $37 million to $39 million. Previous guidance had the company with total revenues of $70 million to $73 million.

The company cited a weaker-than-expected environment, particularly in Europe.  Additionally, deployment products fell short of expected license revenues.

Fuller, who has served for six years, will continue to serve as a member of the Borland Board of Directors. An executive committee has been formed to begin the process of a naming a new CEO.

Borland Chairman William K. Hooper released this prepared statement: “I would like to thank Dale for his six years of service and his leadership during the initial stages of Borland’s transition. While we are disappointed with the second quarter results, we continue to see positive developments in demand for the company’s ALM (application lifecycle management) products and customer success in Borland’s largest ALM implementations. The Board of Directors has confidence in Scott Arnold and the executive team’s ability to manage the near-term challenges in the business and better position Borland to realize the potential of the application lifecycle management market.”

Borland has been seeking to reinvent itself of late with its ALM platform, dubbed its “Software Delivery Optimization” portfolio. While providing development tools for both the .Net and Java development camps, the company nonetheless has witnessed the commoditization of the Java IDE precipitated by the free Eclipse open source IDE, meaning Borland’s commercial JBuilder product would have to compete with Eclipse. Borland also has hopped on the Eclipse platform.

Revenues for the fiscal year that ended on December 31, 2004, were $309.5 million, with net income of $11.4 million. In the previous year, revenues were $295.2 million. For the quarter ending on March 31, revenues were $71.3 million, with a net income of $3.7 million.

Paul Krill

Paul Krill is editor at large at InfoWorld. Paul has been covering computer technology as a news and feature reporter for more than 35 years, including 30 years at InfoWorld. He has specialized in coverage of software development tools and technologies since the 1990s, and he continues to lead InfoWorld’s news coverage of software development platforms including Java and .NET and programming languages including JavaScript, TypeScript, PHP, Python, Ruby, Rust, and Go. Long trusted as a reporter who prioritizes accuracy, integrity, and the best interests of readers, Paul is sought out by technology companies and industry organizations who want to reach InfoWorld’s audience of software developers and other information technology professionals. Paul has won a “Best Technology News Coverage” award from IDG.

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