Applications & OS News
Borland Reports CodeGear Sales As 'CodeRage' Rally Rolls
The first look at CodeGear's financials came as the semi-independent entity staged a virtual user's conference, called CodeRage, to rally its faithful. The conference runs online through Friday.
Borland didn't break out its operating results by segment, but the Scotts Valley, Calif.-based company as a whole lost $52 million last year on sales of $304.6 million. Though Borland's total revenue grew 10 percent year over year, its CodeGear business suffered a 14 percent revenue drop.
Borland is currently revamping its business, moving into the application life-cycle management market and away from the IDE products that once formed its core. After trying and failing to find a buyer last year for the business, Borland decided to keep the group in-house but isolate it as an independent subsidiary.
CodeGear formally commenced independent operations on Jan. 1. This quarter will be the first for which CodeGear reports sales and operating results.
After a year filled with financial reporting delays and a close brush with Nasdaq delisting, Borland is struggling to get its accounting back on track.
A board review last year found "material weaknesses" in Borland's handling of contractor invoices and overrides of its financial controls. Some of the problems still aren't patched. Borland's new annual report said that as of Dec. 31, the company didn't have its controls locked down. A "senior official" was able to amend a sales contract to promise delivery of an additional software feature not approved by Borland's financial and legal team and to offer a refund on a customer payment without approvals.
Borland named new CFO, Eric Prusch, late last year. The company said he's working to strengthen financial controls.
Meanwhile, CodeGear's beleaguered team is working to rekindle a business that partners and insiders said was left for dead on Borland's watch. One part of their plan got under way this week, when CodeGear kicked off CodeRage, an online extravaganza of training sessions and keynote addresses.
Day One drew such heavy attendance that it overwhelmed CodeGear's servers, Chief Evangelist David Intersimone reported in his blog. Still, CodeGear managed to update attendees on its road maps and smooth out the technical kinks.
Attendees are giving enthusiastic reports on CodeGear's efforts. "There's an energy to this company like I haven't felt in years from them," Cass McNutt, CEO of software development firm Vantage Technology Group, wrote in his blog. "You can feel the oxygen filling up the room."