borlandoverview
TRANSCRIPT
Inprise/Borland Corporation
Corporate Overview Presentation
Forward-looking statements in this presentation, including but not limited to, those concerning Inprise’s future financial performance, product development plans, and the potential features of or benefits to be derived from the Company’s products, involve a number of uncertainties and risks, and actual events or results may differ materially. Factors that could cause actual events or results to differ materially include, among others, the following: possible disruptive effects of organizational or personnel changes by the Company, shifts in customer demand, market acceptance of the Company’s new or enhanced products, delays in scheduled product availability dates, actions or announcements by competitors, software errors, general business conditions and market growth rates in the client/server and Internet software markets, and other factors described in the Company’s S.E.C. reports on Forms 10-K and 10-Q.
Positioned For Growth
• The leading developer of tools for tomorrow’s markets – Linux and ASPs.
• Providing developers with a world-class community and market.
• Using today’s revenue to fund tomorrow’s market growth.
Inprise/Borland
• Linux
• AppServer
• EmergingMarkets
Past Now
• Tools
• EnterpriseProducts
Tools• #1 Independent Vendor of Application
Development Tools & Solutions
• Funding Growth for Emerging Technologies
• Market Opportunities --- Linux, Java
Growth in 4GL Market = CAGR 18%
Source: IDC
Tools• Products:
- Delphi
- C++
- JBuilder
Tools65%
Enterprise35%
Tomorrow --Linux Platform
• #1 Developer of Tools for the Linux Platform
• First Enterprise-grade Linux SQL database
• #1 CORBA ORB on Linux
• JBuilder for Linux just released
• On target to launch the first RAD tool for Linux
• RTM in February 2000: VisiBroker 4 for Linux and
AppServer 4.0 for Linux
Enterprise Products• Products:
- Inprise Application Server- VisiBroker - ORB- AppCenter – Management System
- InterBase – Embedded Database• VisiBroker -- 70% market share
Tools65%
Enterprise35%
Enterprise Products
• AppServer Key Product Differentiators
-- AppCenter (Management Console)
-- First AppServer to support both EJB 1.1 & CORBA standards
0
5
10
15
20
25
1999 2000 2001 2001 2003
Source: IDC
Application Server Market Growth = CAGR 44%
Bi ll
ion
s
Tomorrow’s Products
• AppServer for Linux
• VisiBroker for Linux
• AppCenter
Emerging Technologies & MarketsEmerging Technologies & Markets
• Inprise AppServices InfoBus--ASPInprise AppServices InfoBus--ASP
• WAP AppServices--OEM & EnterpriseWAP AppServices--OEM & Enterprise
Tomorrow
EnterpriseEnterpriseCRMCRM
ASPASP
Universal Registration ServiceUniversal Registration Service
Transport ServiceTransport Service
AppServices Messaging LayerAppServices Messaging Layer
ERPERPCalendarCalendar
MailMail
AddressesAddresses
ChatChat
Etc.Etc.
The Internet / IntranetThe Internet / Intranet
ASPASP ASPASP
FinancialsFinancialsfor 1999for 1999
Revenue by Quarter
43.4
40.2
45.7
43.0
37
38
39
40
41
42
43
44
45
46
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Mil
lion
s of
Dol
lars
Q4 is Street Estimate
Gross Margin (%) by Quarter
74 74
77
76
73
74
75
76
77
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
(%
) P
erce
ntag
e
Q4 is Street Estimate
Total Net Income (Loss) by Quarter
*
-25.6
-87.5
-1.4 -5.1
-90.0
-80.0
-70.0
-60.0
-50.0
-40.0
-30.0
-20.0
-10.0
0.0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Mil
lion
s of
Dol
lars
Q4 is Street Estimate
Total Net Income (Loss) by Quarterexcluding non-recurring
*
-10.4 -10.7
-2.8
-5.1
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Mil
lion
s of
Dol
lars
Q4 is Street Estimate
CONSOLIDATED BALANCE SHEET(in millions)
12-31-97 12-31-98 09-30-99ASSETSCash & equivalents $102.6 $ 84.4 $179.5Receivables 34.7 43.
537.4
Other current assets 7.2 10.4 9.1Property and equipment, net 104.9 111.1 107.3Non-current assets 6.4 4.4 5.2 Total Assets $255.8 $253.8 $338.5
LIABILITIES & STOCKHOLDERS’ EQUITYCurrent liabilities 80.0 76.8 80.8Long-term debt and other 22.0 19.1 18.4Redeemable stock 27.3 36.9 2.5Stockholders’ equity 126.5 121.0 236.8 Total liabilities and
stockholders’ equity$255.8 $253.
8$338.5
Financial Model Target
Q3, 1999 Q3, 2000Revenues Licenses 87% 75-80% Services 13 20-25Total 100% 100%
Gross Margin 77% 73-75%Operating Expenses Research & Development 22 20-22 SG&A 66 45-50Operating Income/Loss (11) 3-8 Other Income 8 3-5 Earnings Before Tax ( 3) % 6-13%
Focus
• Profitability and Revenue Growth
• Leverage mature businesses for growth of investment
• Invest in emerging technologies
Strategic Fit• Linux for the Rest of Us:
Owning the Desktop and Server side of Linux Platform from tools to middlewareto development & deployment environments
•Corporate Developer Toolkit & Workstation: Client & Server Side OfferingAppServer, JBuilder, VCL, Corel Office,
Corel Graphics Products
• Linux Middleware PlayLinux ORB OfferingInterbase/Paradox, VisiBroker for Linux
• Enabling Linux/Intel 64 Bit E-Commerce High-end Data Processing for intensive graphics & computation environments