The financially-troubled Borland International, maker of development tools, has raised approximately $US25 million in equity financing. The funds will be used to acquire and develop new technologies.
In April Borland posted a net loss of $US2.5 million, for the fourth quarter, compared to net income of $US7 million for the same quarter a year earlier. The results included a $US23.1 million charge associated with a worldwide restructuring, which included a 30 per cent reduction in the company's workforce.
The recent funds were raised via financing arranged by the Promethean Investment Group, LLC of New York, through the sale of a newly created class of convertible preferred stock and warrants.
Borland may call for a second round of financing for up to an additional $US25 million. "This equity financing is integral to our turnaround plans and future growth," Delbert Yocam, chairman and chief executive officer, said in a statement.
"This additional capital enables Borland to invest in developing and acquiring new technologies and allows Borland to take advantage of market opportunities."
Company officials declined to discuss Borland's plans for acquiring new technologies, deferring this until the company's upcoming user conference in Nashville this month.
Borland, based in Scotts Valley, California, can be reached on the World Wide Web at: www.borland.com/