BORLAND HIGHLIGHTS January 2002 v.6 IN THIS ISSUE: JANUARY BORLAND ANNOUNCEMENTS Q4 EARNINGS AND ACQUISITION COVERAGE BORLAND “IN THE NEWS” HIGHLIGHTS INDUSTRY ANALYST HIGHLIGHTS CORPORATE/CEO PROFILE JANUARY BORLAND ANNOUNCEMENTS January 30, 2002 Borland Signs Software Distribution Agreement with Merisel Deal Expands Distribution of Borland® JBuilder™, Delphi™, Kylix™, C++Builder™, and Borland® Enterprise Server, Web Edition Borland announced an agreement with Merisel, Inc. (Nasdaq: MSEL) to distribute Borland® development and deployment products. Merisel is a leading distributor of software licensing products to resellers in the U.S., and will extend Borland's presence by distributing Borland® JBuilder™, the market leading Java™ development environment, Borland Delphi™, Kylix™, and C++Builder™ rapid application development (RAD) software technology solutions, as well as Borland® Enterprise Server, Web Edition, a robust deployment platform for Web applications. http://www.borland.com/about/press/2002/merisel.html January 29, 2002 Borland® Enterprise Server Certified as J2EE 1.3 Compatible Comprehensive Standards Compatibility Further Strengthens Leadership Role in High End Application Server Market Borland announced that the Borland® Enterprise Server is certified as Java™ 2 Platform, Enterprise Edition (J2EE™) 1.3-compatible. This certification illustrates Borland's continued adherence to industry standards, enabling customers to increase productivity and deliver highperformance projects faster, while lowering their total cost of ownership. http://www.borland.com/about/press/2002/bes_compatible_j2ee13.html January 29, 2002 Borland Unveils JBuilder™ MobileSet 2 for J2ME™ Wireless Application Development Free Download Features Multiple Vendor Device Support and "Over the Air" Provisioning Support Borland announced the immediate availability of Borland® JBuilder™ MobileSet 2.0 for rapid development of mobile and wireless applications for the Java™ 2 Platform, Mobile Edition (J2ME™). http://www.borland.com/about/press/2002/mobileset2.html January 28, 2002 Borland Unveils C++ Application Development Strategy for 2002 Aims to Simplify and Speed C++ Application Development Across Multiple Platforms and Devices Borland unveiled its strategy to extend rapid application development (RAD) to the C++ language in 2002. Analyst firm IDC estimates there are more than 2.6 million C++ developers, making C++ the world's most widely used development language. Borland launches its 2002 C++ strategy by announcing plans to deliver a RAD solution with C++ development for the Linux® operating system in the first half of 2002. This announcement extends the company's ongoing commitment to the C++ community by offering best-in-class, flexible development environments. http://www.borland.com/about/press/2002/cpp_appstrategy.html January 24, 2002 Borland 2001 Revenues Rise 16% Operating Income Increases 44% http://www.borland.com/about/press/2002/4q01.html January 22, 2002 Borland Acquires VMGEAR in All-Cash Transaction Acquisition of Java™ Performance Solutions Provider Expected to Boost Java Developer Productivity Borland announced it has acquired privately held Redline Software, Inc., known as VMGEAR, the developer of OptimizeIt™ Suite. http://www.borland.com/about/press/2002/vmgear.html January 17, 2002 Borland Delivers JBuilder™ 6 Personal Free Download Drives Adoption of Java™ Platform Borland announced the availability of Borland® JBuilder™ 6 Personal, the leading environment for learning Java™ programming and visually developing Java applications for personal, noncommercial use on Windows®, Linux®, Solaris™, and Mac® OS platforms. http://www.borland.com/about/press/2002/jbuilder6_delivered.html January 14, 2002 Borland Acquires IT Training Services Provider in Brazil Advanced Training Center Ltd. (ATC) to Bolster Borland's Market Penetration throughout Latin America Borland announced that, through its wholly owned subsidiary, Borland Latin America Ltd., it has acquired all the assets of Advanced Training Center Ltd. (ATC), a Brazilian IT training company. http://www.borland.com/about/press/2002/it_services_brazil.html January 8, 2002 Borland Unifies Design, Development and Deployment with Borland® Enterprise Studio for Windows® Comprehensive Suite Includes Borland® Delphi™ 6 and Rational Rose®, Integrated to Speed Time to Market, Reduce Costs and Maintain Design Integrity Borland announced Borland® Enterprise Studio for Windows® (the Studio), a new, tightly integrated suite of powerful, industry leading products. Designed for enterprises that require rich UML™ modeling capabilities for development and a secure and reliable deployment platform, the Studio provides a complete design-to-deployment solution for the Windows platform. http://www.borland.com/about/press/2002/estudio_for_windows.html Q4 EARNINGS AND ACQUISITION COVERAGE Associated Press CBS Market Watch from Reuters Computergram International Borland Deal to Improve Developers' Efficiency Computer Times Borland acquires testing provider http://computertimes.asia1.com.sg/v2/tody03.shtml Developer's Online (Brazil) http://www.developers.com.br/cionews.asp?noticia=1393 / Dow Jones News Service Borland 2001 Revenues Rise 16% Javaworld Borland buys VMGear San Jose Mercury News Earnings Report Silicon Valley San Jose Business Journal Borland acquires Redline http://sanjose.bcentral.com/sanjose/stories/2002/01/21/daily13.html The451.com Borland acquires Java tools firm Wall Street Journal Business Brief -- Borland Software Corp. Borland buys Java software company http://www.santacruzsentinel.com/archive/2002/January/23/biz/stories/02biz.htm Borland eyes robust future http://www.santacruzsentinel.com/archive/2002/January/25/biz/stories/01biz.htm Borland Buys Java Performance Solutions Provider Darryl K. Taft http://www.eweek.com/article/0,3658,s%253D701%2526a%253D21567,00.asp Business Brief -- Borland Software Corp.: Brazilian IT-Training Firm Is Acquired for Cash, Stock January 15, 2002 Borland Software Corp. acquired, through its Borland Latin America Ltd. unit, all the assets of Advanced Training Center Ltd., a Brazilian information-technology training company. Business Brief -- Borland Software Corp.: Brazilian IT-Training Firm Is Acquired for Cash, Stock…Borland said it believes the Latin American market "holds great potential," and it expects the transaction to help the company achieve greater market penetration in the area. Borland is a Scotts Valley, Calif., provider of technology used to develop, deploy and integrate software applications. Borland buys firm in Brazil By Mike De Give January 15, 2002 http://www.santacruzsentinel.com/archive/2002/January/15/biz/stories/01biz.htm "'We believe that the Latin American market holds great potential for Borland,' said Dale L. Fuller, president and chief executive officer for Borland. 'This enhancement to our ability to train end-users in Latin America will help Borland achieve greater market penetration in Latin America.'" Borland Buys IT Training Services Provider in Brazil January 14, 2002 "Borland Software Corp. (BORL) acquired, through its wholly owned Borland Latin America Ltd. unit, all the assets of Advanced Training Center Ltd., a Brazilian information technology training company." BORLAND “IN THE NEWS” HIGHLIGHTS Investor's Edge Radio Interview with Dale L. Fuller January 29, 2002 http://events.yahoo.com/radio/archives/btr/investorsedge/ On the Move: Borland CEO: We will continue to execute and expand Dale Fuller, CEO, Borland interviewed January 24, 2002 http://search.on24.com/search/search?caller=on24&srch_txt=borland Taking Stock: Changing Of The Guard In The InformationWeek 100 Index By William Schaff January 14, 2002 "Borland Software (BORL—Nasdaq), an old-line name that's well known to most software developers, is back from the brink. Borland provides tools for software application development, deployment, and integration." The Electronic Times In the Year of the Horse, KB Choi, President of Borland Korea, says that the company’s task is the greatest customer satisfaction this year By Ms Cho In-Hye January 22, 2002 "Borland has a strong reputation as a development tool company…I will try to raise Borland’s corporate awareness with aggressive promotions this year," said Mr Key Bong Choi…"We did quite well last year. This year, we will allocate more resources on taking care of our customers," he continued. Borland's three-pronged strategy for India By Mini K Joseph January 11, 2002 "We see huge growth potential in Asia Pacific market. During 2001, we entered in four new countries. These countries are going to spearhead our growth," said Sam Ghebranious Local Executives Express Cautious Optimism for 2002 By Jennifer Pittman January 5, 2002 http://www.santacruzsentinel.com/archive/2002/January/05/local/stories/02local.htm "Another rare voice of near-optimism is Fred Ball, chief financial officer at Borland Software, a company that managed double-digit growth last year." "I think the economy is showing some signs of life," Ball said. "Last year company executives predicted 20 percent growth. They made about 15-16 percent and are predicting 12-15 percent growth for 2002. Just last quarter, Borland added 40 people to its 600person work force (25 of them were at the Scotts Valley office). Ball said he expects to add between 40 and 75 people in 2002." "We’ve been able to attract more and better people. Now you’re able to be a little bit more selective." By Michelle Young January 2002 http://www.intelligententerprise.com/020101/501feat2_3.shtml "While other companies are suffering from the tough economic environment, applicationdevelopment stalwart Borland reported its sixth consecutive quarter of profitability, its seventh consecutive quarter of positive cash flow, and continued improvement in its balance sheet. CEO Dale Fuller attributes this success to JBuilder's growing market penetration." Borland: Tracking down corporate pirates By Nicole Bellamy January 16, 2002 http://www.zdnet.com.au/newstech/enterprise/story/0,2000025001,20262976,00.htm "'The goal of Borland is not to be draconian,' Fuller told ZDNet Australia….'Borland does not intend to enter into developers homes and access their computers,' rather it intends to 'ensure companies have the correct [audit] mechanisms in place' and to maximize the customer's 'ability to use products while remaining compliant' with Borland's licensing terms, according to Fuller." Java gains mainstream status in ’02 By Frances Chan January 28, 2002 http://www.cmpnetasia.com/ViewArt.cfm?Artid=13707&catid=8&subcat=86 "Java adoption is high in Singapore, where Web services is an emerging technology. Compared with Java, electronic data interchange is expensive to implement. In India, Java is still gaining its acceptance. In China, although our Delphi product (a rapid application development environment for Windows applications) is still very successful, the demand for Java tools are growing," said Julian Quinn, VP, Borland Asia Pacific. "The significance of Java is that developers can retain the old programming environment, and at the same time, harness that and integrate it seamlessly with the emerging e-business and e-commerce environment," Quinn said. Web services next big thing: Borland By Julie Clow January 25, 2002 http://www.itworldcanada.com/portals/portalDisplay.cfm?oid=230BE2D6-9ABF-4A0C-AA139B903244BDE6 "The most exciting thing about technology today isn’t its ability to allow people to talk to people, or even for people to talk to computers. It’s technology’s ability to allow computers to talk to each other, according to the chief strategist at Borland Software Corp…..That’s why Web services is going to be the next big buzz phrase in the world of technology, said Ted Shelton, vice-president and chief strategist at Scotts Valley, Calif.-based Borland at a recent meeting in Toronto. " Secure Web services a moving target By Ephraim Schwartz January 17, 2002 http://www.infoworld.com/articles/hn/xml/02/01/17/020117hntarget.xml "Web services are too simple to design without considering security," said Ted Shelton, chief strategy officer at Scotts Valley, Calif.-based Borland Software. "Web services need to have basic principles of security built in, and that will cost." "'This is the difference between a grand vision and the reality that security has to be built into every layer of the infrastructure before you get more distributed applications,' Shelton said. 'At the moment, security, at least on the public Internet, is the wild, wild West.'" Maturation, Outsourcing and Consolidation – Reflections on important Releases and Trends from 2001 January 14, 2002 http://www.intelligententerprise.com/020114/502products1_1.shtml "Such early products as Borland Software Corp.'s Delphi 6 and SilverStream Software Inc.'s eXtend Application Server 3.0 indicate that frameworks and integrated development environments for Web services may turn the alphabet soup of standards into something the average shop can use productively." Support for Web services reaffirmed By Tao Ai Lei January 14, 2002 http://www.cmpnetasia.com/ViewArt.cfm?Artid=13569&catid=8&subcat=86 "Most of these [Web Services] standards are still immature with different vendors offering their own implementations of the specifications," said Raymond Lee, country manager, Borland Singapore. XML to Web Services in Just Five Years January 12, 2002 "Second-generation development tools for web services are beginning to appear. Perhaps the most exciting are Borland 's twin products Delphi (for Windows) and Kylix (for Linux), which combine one of the very best object-oriented rapid application development tools with support for CORBA, Java and web services." Enterprises Seek Web Services Platform Unity By Tom Sullivan & Ed Scannell January 11, 2002 http://www.infoworld.com/articles/hn/xml/02/01/14/020114hnbridging.xml "According to Frank Slootman, vice president of products at Borland, the ultimate goal is to create a development environment where J2EE-based applications and .Net applications can not only interoperate but also be used together to assemble Web services." "We don't believe that people will be choosing between .Net and J2EE. Most people will end up with pieces of both. These are going to coexist in one way or another, and we think they'll coexist through Web services," Slootman said. New Year Interview By R.Yamashita January 10, 2002 http://www.zdnet.co.jp/enterprise/0201/10/02011001.html "In the future, we would like to keep offering the leading technology for Web application construction," said Yoshio Ando Early Web services will integrate enterprise apps January 4, 2002 "Borland wants to be the king of interoperability in the land of Web services." "Web services marks a shift to decentralized and distributed computing…Web services is going to be the key to interoperability, said Ted Shelton." The eBusiness Parts List - The Who's Who of e-Business January 2002 http://www.business2.com/articles/mag/0,1640,35691|3,FF.html Featuring Borland AppServer 4.5 as Who's Who in Application Server Software ZDNet.fr Borland updates Jbuilder and AppServer January 21, 2002 "The new version of Borland’s platform conforms to the J2EE 1.3 specification and utilizes unique partitioning technology. "JBuilder includes features enabling extreme programming." Thieves fail to escape the net By Kate Mackenzie January 25, 2002 http://australianit.news.com.au/common/search_form_handler?SEARCH_ACT=display&story_id=3653686&TotalPa ge=1&searchTermIMT=%28borland%29&pageNum=1&resNum=20&searchLog=2002021412541931492&searchBy=date&Intro=No "Mr O'Neill (managing director of Mercadier) said software vendor Borland took an interest in the development of [mi-Trek software], which was completed with JBuilder." Web plugin for JBuilder January 14, 2002 "The [Borland JBuilder] Web Services kit handles Simple Object Access Protocol (Soap), Universal Description, Discovery and Integration (UDDI) and Web Services Description Language (WSDL) and comprises a series of application programming interfaces (APIs) with additional architecture and standards developed by the Java community." JavaOne 2001 Japan Report January 25, 2002 "Borland provides development environment, deployment environment and service based on J2EE technology" "Recently, the cases that customers chose Borland's product for deployment environment has increased, because of the good request of developers who use JBuilder as their Java development environment." Said Tony de la Lama, Borland Software Corporation. Borland rises to .Net challenge with new development suite January 17, 2002 "Microsoft has been in a head-to-head battle with Borland to win over the development community to its tool set…the functionality concentrated in Visual Studio has been a challenge for Borland, but its highly praised Delphi software has helped to maintain its prominence. Now the company is fighting back with Enterprise Studio for Windows." Journal du Net Borland poses an alternative to Visual Studio January 7, 2002 "Overall this bundle is a simpler alternative to the more cumbersome suites such as Visual Studio .Net from Microsoft." Top Story: LinuxWorld: Borland to kick off C++ for Linux strategy By Tom Sullivan January 24, 2002 http://www.infoworld.com/articles/hn/xml/02/01/24/020124hnborland.xml "Borland will further its open-source strategy next Tuesday when it details plans for C++ on Linux at the LinuxWorld Conference in New York….'Adding C++ for Linux to [Borland's] repertoire of programming tools will make it easier for those Unix developers to work on Linux thereby increasing the usefulness of Linux as a low-cost alternative to Unix,'" said Dan Kusnetzky, an analyst at Framingham, Mass.-based IDC. Italy Studio and companies January 21, 2002 "It’s called Enterprise Studio for Windows and it’s a suite of products that covers the entire lifecycle of project development, on the Microsoft platform. The latest offering from Borland, the company that focuses on the development of platforms for e-businesses, aimed at increasing the productivity of developers." Java does the business By Stephen Withers January 7, 2002 http://www.zdnet.com.au/newstech/ebusiness/story/0,2000024981,20262736-1,00.htm "Even though Mercadier was already using Delphi, the company examined various Java development tools before choosing Borland’s due to its ease of use and potential for rapid development." PC Expert Delphi 6: the First IDE for Web Services January 2002 "Borland Delphi 6 is the first development environment to offer Web Services." "Borland is a credible partner for enterprise customers, both with Delphi and its J2EE platform (Jbuilder and Application Server)." Kylix 2, Enterprise Edition January 2002 "Since the release in early 2001, Borland’s Rapid Application Development suite for Linux - Kylix has been causing a stir amongst developers and the media alike - and it’s easy to see why." Kylix & Delphi By David Williams January 2002 "Kylix is so innovative for Linux…it is the most full-featured development environment at this time. The cross-platform capability is almost merely a bonus on top of this." Computer Reseller News (Norge) The Windows-free office, is that even a possibility? Frank J. Ohlenhorst January 9, 2002 "The introduction of Borland’s Kylix language marked a new chapter in the development of Linux. Kylix is based on the popular Delphi language, Borland’s version of the object focussed Pascal." Dator Magazin (Norge) Borland Kylix 2 Open Edition January 28, 2002 "With Kylix, developers can easily design a graphic user interface which they can then bring to life with different functions. To create a graphic user interface, which works well on every site can be very time consuming as you have to do everything manually. Kylix does it almost automatically." Linux Pilot (Hong Kong) Kylix 2 January 2002 "Compared to Kylix, we have enhanced many features in Kylix 2 especially for Web Services. As the cost of ownership for Linux is low, more and more enterprises will move their Windows Servers to the Linux platform," said Andrew Wong Programmez Borland Teamsource: Distributed Application Development January 2002 "Borland understood that distributed development can be a lot more productive than a centralized development model. Today Borland offers a good solution for this." INDUSTRY ANALYST HIGHLIGHTS Rikki Kirzner, Research Director, Application Development & Deployment, IDC "C++ is the leading language preferred by developers worldwide for application creation, and Linux is an operating system that has also become popular with developers in recent years. Any company that can provide Web services complete with tools that bring C++ to the Linux platform, will be poised to meet an enormous demand and dramatically advance C++ development. A strategy and tools solution providing both Linux and Web Services capabilities will fulfill the growing requirements of developers and enterprises alike." CORPORATE/CEO PROFILE Integrating the Enterprise January 2002 By Joanne Eglash http://www.californiaceo.com/archive/0102/08P&L.html Today's Borland is a different company than that of two years ago as the enterprise software company reinvents itself. If Borland Software Corp. were to choose a theme song, Happy Days Are Here Again would be fitting. That’s because the Scotts Valley tech firm ranks as one of the few Silicon Valley companies to report rising earnings in 2001. Initially named Borland International, when it was founded nearly 20 years ago, the company grew to become tops for its software developer tools. However, Borland’s popularity waned in the ‘90s, and then founder and CEO Philippe Kahn left the company. This was followed by a series of different CEOs, a name change to Inprise, and a rise in stockholder doubts. Enter president and CEO Dale Fuller, a former developer and marketing-management pro. Fuller faced a considerable challenge in accepting the CEO post. Borland’s history resembled the highs and lows of the world's tallest roller coaster. At times, the company was more known for Kahn, a flashy CEO with a mathematical prowess and a jazz music wizardry, it was for its software. But since joining the company in 1999, Fuller has orchestrated a symbolic name change from Inprise to Borland Software and has rejuvenated the company’s product line in the enterprise computing marketplace. The result of Fuller’s new direction has had a dramatic effect on earnings. In the third quarter of 2001, the company announced a 16% rise in revenue, not bad considering the current economy, or any economy for that matter. The 42-year-old CEO has even succeeded in regaining the attention of analysts who had, in recent years, ignored Borland. When asked how he did it, Fuller grins and answers, "Borland had a place in history. Borland had such a strong loyalty and following, we couldn't let it go down without a fight." Developer relations Fuller has been in software for years, having served as the former CEO of the Internet company WhoWhere? Inc. and later the VP and general manager of Apple Computer’s PowerBook business unit. Fuller’s experience led him to take a personal vow to satisfy the developer community’s constant quest for variety and adventure in making products. So at Borland he applied what he considers the fundamental building blocks for a strong relationship with the developer community honesty, making cool stuff, and showing users new tricks to make them more productive. In the future, Fuller predicts that the company will continue to grow as long as it produces quality products that keep the developer community loyal and partners with heavy hitters. Among those partnerships are with enterprise IT suppliers such as Sun, Oracle, and Microsoft. And the company is growing its professional services partnerships with Arthur Andersen, Ernst & Young, and Grant Thornton. Also, Fuller’s management style is reminiscent of the Hewlett-Packard way in which the CEO strolls along the corporate campus talking informally to employees. "I get together with them and surprise them by going with them to dinner," he says. Fuller’s "management by wandering around" approach stems from his belief that the CEO should have a gut feeling for what’s going on throughout the company. "That’s the key to anything I do. I have to be out there and leverage myself. Fuller gestures to a pile of birthday cards on his desk. Each month, he signs cards for every one of the 900 or so employees who celebrates a birthday in that month. Fuller says that a manager succeeds by being close and accessible to employees. In addition to hearing what employees want, Fuller says it’s critical to stay in touch with customers. This hadn’t always been the case under prior leadership, but today Fuller says Borland is doing a better job of hearing the customers wants and needs. Company Overview Borland Software Corp. 100 Enterprise Way Scotts Valley, CA 95066-3249 831-431-1000 www.borland.com Employees Borland employs some 900 led by Chairman William Miller and president and CEO Dale L. Fuller. Miller, was previously chairman and Fuller was CEO of WhoWhere Inc., an Internet company acquired by Lycos in 1998. Financials For the year ended December 2000, Borland reported profit of nearly $21 million on more than $191 million in revenue, compared to a profit of more than $22.7 million on revenue of about $175 million in 1999. History Borland was founded by Philippe Kahn in 1982 and boomed in the ‘80s when it became the world's third-largest personal computer software maker, behind Microsoft Corp. and Lotus Development Corp. Kahn built a $100 million campus in Scotts Valley, and vowed to take on Microsoft in the business software market. Borland and Kahn lost miserably. Directors forced Kahn out in 1995 after the company suffered three years of losses. What’s in a name? But now Borland is re-branded. The company, which changed its name to Inprise, has reclaimed its original moniker. Borland has refocused around its Web-based application software, also known as middleware, that allows clients to deploy online applications compatible with different hardware and software platforms. Microsoft Microsoft, once a bitter foe, now owns stock in Borland after having made an initial investment of $25 million in the late ‘90s. Borland was once considered a big enough threat to Microsoft that Bill Gates wrote a metaphorical memo to staff directing them to "kill Philippe," referring to Borland founder Philippe Kahn. ###