May 10, 2007
CodeGear: two millions, one quarter
For the first time, Borland is filing its financial information (specifically, for the first quarter 2007) providing split revenues and earnings for "Enterprise" and CodeGear. These are the 6 key numbers:
| Revenues | Earnings | |
| Borland (overall) | 71.0 million | - 9.2 million |
| "Enterprise" | 56.9 million | - 10.6 million |
| CodeGear | 14.1 million | 1.9 million |
There are many other numbers worth looking it, but the summary is that CodeGear is making money, almost 2 millions in a quarter. Revenues might be lower than in the past, but with specific expenses accounted for, the numbers are interesting... even if this was a probably an good quarter because of the new products being launched. And it is quite a blow to all "dooms-sayers", including those of the "rushing-out-products-because-they-are-loosing-money" conspiracy.
Go CodeGear, go Delphi!
Update
Only after posting this entry I found out a more detailed report, already mentioned in non-tech, which asserts CodeGear revenues decreased by 45%. The same report claims no mayor shipments in the quarter, as even if they were taking orders for the new products in March, the can claim the revenue only at ship time (which is probably different from the past). Also, last year IDEs included more ALM tools, so comparing revenues that included StarTeam licenses, for example, is not totally fair.
Even after reading this more detailed report, I still stand by my initial statement. CodeGear is making a good amount of money for a "startup". And Delphi is probably accounts for a good chunk of it. Sta tuned.
7 Comments
CodeGear two millions, one quarter
Wow, but then again we knew that the tools section where making money... Any CodeGear shares lying around somewhere?Comment by Dave Versteeg [] on May 10, 15:53
CodeGear two millions, one quarter
I find it curious that their operating expenses increased so much. If they couldn't sell the dev tools division, perhaps they should have stuck with a revitalization effort that didn't involve spending so much money. Having watched Borland's stock & management decision making processes over the past 12 years, I have to conclude that these numbers reflect a 'business as usual' approach for Borland management. Every time they have innovated since about '96 they have spent more than they have earned or have seriously eroded their profit margins by making big purchases that usually didn't net the profit they had anticipated. This comment is not to take away from the efforts of the current CodeGear team. I know they are all working extremely hard to make the boat float, and I applaud them. Let's just hope that the CodeGear division can get profitable by the end of the second quarter. It would be great if that could happen and Borland would cut them loose from their moorings. Give them a chance to swim without the Borland executive overhead. Hmmm... wonder how much operating expenses will exceed profits when a 23 year old company moves from it's tradional home in CA to Austin Texas...Comment by David Keith on May 10, 16:38
Rush yes, loose money no...
I've said and stand by what I said that they *did* rush the products! :) Not, IMO, because they were loosing money or because they were desperately needing it, but rather because they wanted to do good in 1st Q: after all, Ben Smith did have to show something before handing over CodeGear to Jim Douglas... Of course, one will never know what those figures above would be if CG didn't rush out Delphi for Win32 and Delphi for PHP in the 1st Q... We will need to wait another month to see if they rush out BDS 2007 just to make some cash this Q or if they will stand by Jim's idea of improving the user's experience...Comment by Fernando Madruga [http://memyselfanddelphi.blogspot.com] on May 10, 17:00
CodeGear two millions, one quarter
It's just a quarter, let's wait... it could be just the savings on VPs... <g>Comment by Tired user on May 10, 17:47
CodeGear two millions, one quarter
Maybe we have it backwards. Maybe Codegear should sell Borland.. Borland seems to be the albatross around Codegears neck!Comment by Mark on May 10, 18:25
CodeGear two millions, one quarter
I think I'll wait for a full year of seperation before I start seeing numbers that are meaningful. Borland has gotten a lot of CodeGear's current subscription/support revenue, and I suspect that if one investigated in detail, that there would be a LOT of eyebrow raising events. After all, if you took this information and used it to estimate the sale cost of the CodeGear, it would be worth 20 million at BEST. Kinda makes you wonder what Borland's order fulfilment costs actually are... CodeGear needs to totally seperate themselves from Borland in that regard. Give it a year, we should have better numbers.Comment by Xepol on May 10, 20:09
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CodeGear two millions, one quarter
Comment by Delphi-Lover on May 10, 14:42