Borland Software Corp – ‘8-K/A’ for 11/18/96

As of:  Friday, 1/31/97   ·   For:  11/18/96   ·   Accession #:  1012870-97-150   ·   File #:  1-10824

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Amendment to Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K/A       Amendment to Current Report                            9     31K 

Document Table of Contents

8-K/A
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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

AMENDMENT NO. 1 TO
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)    November 18, 1996           
                                       -------------------

BORLAND INTERNATIONAL, INC.   
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)      

Delaware                     33-80946              94-2895440   
--------------------------------------------------------------------------------
(State or other jurisdiction        (Commission            (IRS Employer        
 of incorporation)             File Number)        Identification No.)

            100 Borland Way, Scotts Valley, California                95066-3249
--------------------------------------------------------------------------------
            (Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code   (408) 431-1000             
                                        --------------

Not applicable    
--------------------------------------------------------------------------------
(Former name or former address, if changed since last report)   

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     This Report amends the Registrant's Report on Form 8-K originally filed
on December 3, 1996 to provide Pro Forma Unaudited Combined Condensed Financial 
Information not previously available.                                           

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.                                     

(A)  The financial statements required pursuant to Rule 3-05 of   
Regulation S-X were previously reported in the Company and Open Environment     
Corporation Form 10-K's and Form 10-Q's, as filed with the Securities and       
Exchange Commission, and pursuant to General Instruction B.3. of Form 8-K are   
not additionally reported herein.                                               

(B)                                                               

PRO FORMA UNAUDITED COMBINED CONDENSED FINANCIAL   INFORMATION

The following pro forma unaudited combined condensed financial statements give  
effect to the merger of Borland International Inc. ("Borland") and Open         
Environment Corporation ("OEC") to be accounted for as a pooling of interests.  
The pro forma unaudited combined condensed balance sheet presents the combined  
financial position of Borland and OEC as of September 30, 1996 assuming that the
merger had occurred as of September 30, 1996. Upon the merger, OEC's December 31
year end was conformed to Borland's March 31 year end for fiscal 1997.          
Accordingly, the pro forma unaudited combined condensed retained earnings at    
September 30, 1996 has been adjusted as of the first day of fiscal 1997 to      
include the results of operations of OEC for the three months ended March 31,   
1996. Revenues and net loss of OEC for the three months ended March 31, 1996    
were $3,218,742 and $4,966,585, respectively. Such pro forma information is     
based upon the historical balance sheet data of Borland and OEC as of that date.
The pro forma unaudited combined condensed statements of operations give effect 
to the merger of Borland and OEC by combining the results of operations of      
Borland for the three years ended March 31, 1996, three months ended September  
30, 1996 and 1995, and six months ended September 30, 1996 and 1995, with the   
results of operations of OEC for the three years ended December 31, 1995, three 
months ended September 30, 1996 and June 30, 1995, and the six months ended     
September 30, 1996 and June 30, 1995, respectively, on a pooling of interests   
basis. These unaudited pro forma combined condensed financial statements should 
be read in conjunction with the historical consolidated financial statements and
notes thereto of Borland and OEC.                                               

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BORLAND AND OEC 

PRO FORMA UNAUDITED COMBINED CONDENSED BALANCE SHEET
(IN THOUSANDS)

                                                        [Enlarge/Download Table]


                                           BORLAND       OEC                                  
                                        SEPTEMBER 30, SEPTEMBER 30,                 PRO FORMA 
                                            1996         1996        ADJUSTMENTS     COMBINED 
                                          --------      -------     --------------   ---------
                                                                                              

ASSETS                                                                                        
Current assets:                                                                               
 Cash and cash equivalents.............   $ 82,501      $ 4,783   $          --     $ 87,284  
 Short-term investments................      1,725        3,076              --        4,801  
 Accounts receivable, net..............     16,842        3,238              --       20,080  
 Inventories...........................      1,221          --               --        1,221  
 Deferred income taxes and other                                                              
  current assets.......................      7,256        3,167            (500)(3)    9,923  
                                          --------      -------   -------------     --------  
 Total current assets..................    109,545       14,264            (500)     123,309  
Property, plant and equipment, net                                                            
of accumulated depreciation and                                                               
amortization...........................    110,088        2,535            (500)(3)  112,123  
Other non-current assets...............      7,575        1,850              --        9,425  
                                          --------      -------   -------------     --------  
 Total assets..........................   $227,208      $18,649    $     (1,000)    $244,857  
                                          ========      =======   =============     ========  

LIABILITIES AND STOCKHOLDERS' EQUITY                                                          
Current liabilities:                                                                          
 Accounts payable and accrued                                                                 
  expenses.............................   $ 33,061      $ 4,578      $    --        $ 37,639  
 Short term restructuring..............      1,770           --           11,500(3)   13,270  
 Income taxes payable..................     13,926           82              --       14,008  
 Other.................................     14,986        2,213              --       17,199  
                                          --------      -------   -------------     --------  
 Total current liabilities.............     63,743        6,873          11,500       82,116  
Long-term debt and other...............     13,969            3              --       13,972  
                                          --------      -------   -------------     --------  
 Total liabilities.....................     77,712        6,876          11,500       96,088  
                                          --------      -------   -------------     --------  
Stockholders' equity...................    149,496       11,773         (12,500)(3)  148,769  
                                          --------      -------   -------------     --------  
 Total liabilities and                                                                        
  stockholders' equity.................   $227,208      $18,649    $     (1,000)    $244,857  
                                          ========      =======   =============     ========  


See Accompanying Notes to Pro Forma Unaudited Combined Condensed Financial      
Statements.                                                                     

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BORLAND AND OEC 

PRO FORMA UNAUDITED COMBINED CONDENSED STATEMENTS OF OPERATIONS 
(IN THOUSANDS, EXCEPT PER SHARE DATA) 

                                                        [Enlarge/Download Table]


                                           THREE MONTHS ENDED    SIX MONTHS ENDED     
                                             SEPTEMBER 30,         SEPTEMBER 30,      
                                          -------------------   ------------------    
                                            1996        1995     1996          1995   
                                            ----        ----     ----          ----   
                                                                                      

Net revenues............................. $ 39,306    $59,126  $ 77,452      $111,909 
Cost of revenues.........................    7,560     10,008    16,458        20,827 
                                          --------    -------  --------      -------- 
Gross profit.............................   31,746     49,118    60,994        91,082 

Operating expenses:                                                                   
Selling, general and administrative......   32,575     33,392    71,810        72,633 
Research and development.................   14,679     12,424    27,858        24,479 
Restructuring and other non-                                                          
recurring charges........................       --         --     1,083         1,083 
                                          --------    -------   --------      --------
 Total operating expenses................   47,254     45,816    100,751       98,195 
                                          --------    -------   --------     -------- 
Operating income (loss)..................  (15,508)     3,302    (39,757)      (7,113)
Interest income, net and other...........    1,661      1,203      3,551        2,126 
                                          --------    -------   --------     -------- 
Income (loss) before income taxes........  (13,847)     4,505    (36,206)      (4,987)
Provision for income taxes...............      463      1,012        (89)       2,209 
                                          --------    -------   --------     -------- 
Net income (loss)........................ $(14,310)   $ 3,493   $(36,117)    $ (7,196)
                                          ========    =======   ========     ======== 
Net income (loss) per share..............   $(0.39)     $0.09     $(0.99)    $  (0.20)
                                          ========    =======   ========     ======== 
Weighted average shares and equivalent                                                
  shares.................................   36,319     37,162     36,357       35,750 
                                          ========    =======   ========     ======== 

See Accompanying Notes to Pro Forma Unaudited Combined Condensed Financial  
Statements.                                                                     

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BORLAND AND OEC 

PRO FORMA UNAUDITED COMBINED CONDENSED STATEMENTS OF OPERATIONS 
(IN THOUSANDS, EXCEPT PER SHARE DATA) 

                                                                [Download Table]


                                                   YEAR ENDED MARCH 31,       
                                             -------------------------------  
                                               1996        1995        1994   
                                             --------   ---------    -------  
                                                                              

Net revenues.............................    $245,087   $ 272,185    $406,682 
Cost of revenues.........................      38,157      59,739     113,269 
                                             --------   ---------    -------- 
Gross profit.............................     206,930     212,446     293,413 

Operating expenses:                                                           
Selling, general and administrative......     141,744     207,942     267,722 
Research and development.................      50,714      63,836      67,332 
Restructuring and other non-                                                  
recurring charges........................         679      63,070      22,276 
                                             --------   ---------    -------- 
 Total operating expenses................     193,137     334,848     357,330 
                                             --------   ---------    -------- 
Operating income (loss)..................      13,793    (122,402)    (63,917)
Interest income, net and other...........       4,221       3,562       1,910 
Gain on sale of Quattro Pro..............          --     109,927         --  
                                             --------   ---------    -------- 
Income (loss) before income taxes........      18,014      (8,913)    (62,007)
Provision for income taxes...............       3,295       2,914       7,061 
                                             --------   ---------    -------- 
Net income (loss)........................    $ 14,719   $ (11,827)   $(69,068)
                                             ========   =========    ======== 
Net income (loss) per share..............       $0.40      $(0.37)     $(2.23)
                                             ========   =========    ======== 
Weighted average shares and equivalent                                        
  shares.................................      37,167      32,228      30,998 
                                             ========   =========    ======== 

See Accompanying Notes to Pro Forma Unaudited Combined Condensed Financial  
Statements.                                                                     

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NOTES TO PRO FORMA UNAUDITED COMBINED CONDENSED FINANCIAL  STATEMENTS 

1. The pro forma unaudited combined condensed financial statements reflect the  
issuance of up to approximately 4.9 million Borland Shares for an aggregate of  
up to approximately 7.5 million OEC shares (based on shares of OEC Common Stock 
outstanding as of September 30, 1996) in connection with the Merger based on an 
Exchange Ratio of 0.66 shares of Borland Common Stock for each share of OEC     
Common Stock.                                                                   

The pro forma unaudited combined condensed balance sheet presents the combined  
financial position of Borland and OEC as of September 30, 1996 assuming that the
merger had occurred as of September 30, 1996. Such pro forma information is     
based upon the historical consolidated balance sheet data of Borland and OEC as 
of that date. The pro forma unaudited combined condensed statements of          
operations give effect to the merger of Borland and OEC by combining the results
of operations of Borland for the three years ended March 31, 1996, three months 
ended September 30, 1996 and 1995, and the six months ended September 30, 1996  
and 1995, with the results of operations of OEC for the three years ended       
December 31, 1995, three months ended September 30, 1996 and June 30, 1995, and 
the six months ended September 30, 1996 and June 30, 1995, respectively, on a   
pooling of interests basis.                                                     

2. There were no material transactions between Borland and OEC during any period
presented.                                                                      

3. The combined company expected to incur charges to operations in the range of 
$9 million to $12 million, primarily in the quarter in which the Merger was     
consummated, to reflect the combination of the two companies. This estimate     
includes charges related to the elimination of duplicate facilities, property   
and equipment write-offs, severance costs relating to the termination of certain
employees, cancellation of certain contract obligations, and the write-off of   
certain other assets. In addition, Borland and OEC incurred aggregate           
transaction costs of approximately $4 million associated with the Merger,       
bringing the total charge associated with the transaction to a range of $9      
million to $15 million.                                                         

The pro forma combined balance sheet as of September 30, 1996 has been adjusted 
by $12.5 million, the midpoint of the above range, to reflect the aforementioned
costs. The estimated charge is not reflected in the pro forma unaudited combined
condensed statements of operations data. The amount of this charge is an        
estimate preliminary estimate and therefore is subject to change.               

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4. There were no pro forma adjustments required to prepare the pro forma        
unaudited combined condensed statements of operations. The table below sets     
forth the composition of the unaudited pro forma combined net revenues and net  
income for each of the periods shown had the Merger taken place at the beginning
of the periods shown:                                                           

                                                        [Enlarge/Download Table]


                                     THREE MONTHS ENDED          SIX MONTHS ENDED     
                                        SEPTEMBER 30,              SEPTEMBER 30,      
                               ---------------------------     -----------------------
                                      1996         1995          1996         1995    
                                     ------       ------        ------       ------   
                                       (IN THOUSANDS)             (IN THOUSANDS)      
                                                                                      

NET REVENUES                                                                          
Borland.......................       $ 36,407     $ 51,315     $ 70,944    $105,081   
OEC...........................          2,899        7,811        6,508       6,828   
                                     --------     --------     --------    --------   
Combined......................       $ 39,306     $ 59,126     $ 77,452    $111,909   
                                     ========     ========     ========    ========   

NET INCOME (LOSS)                                                                     
Borland.......................       $ (9,819)    $  2,644     $(23,948)   $  5,449   
OEC...........................         (4,491)         849      (12,169)    (12,645)  
                                     --------     --------     --------    --------   
Combined......................       $(14,310)    $  3,493     $(36,117)   $ (7,196)  
                                     ========     ========     ========    ========   

                                            YEAR ENDED MARCH 31,                      
                                     --------------------------------                 
                                       1996         1995         1994                 
                                     -------      --------     -------                
                                             (IN THOUSANDS)                           

NET REVENUES                                                                          
Borland.......................       $215,206     $254,064     $393,519               
OEC...........................         29,881       18,121       13,163               
                                     --------     --------     --------               
Combined......................       $245,087     $272,185     $406,682               
                                     ========     ========     ========               

NET INCOME (LOSS)                                                                     
Borland.......................       $ 14,285     $(12,177)    $(69,891)              
OEC...........................            434          350          823               
                                     --------     --------     --------               
Combined......................       $ 14,719     $(11,827)    $(69,068)              
                                     ========     ========     ========               


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Certain reclassifications have been made to the OEC financial statements in the 
pro forma unaudited combined condensed financial statements to conform to       
Borland's classifications.                                                      

5. The pro forma unaudited combined net income (loss) per share is based on the 
weighted average number of shares of common stock and common equivalent shares  
outstanding of Borland and OEC for each period using an exchange ratio of 0.66  
shares of Borland for each share of OEC.                                        

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SIGNATURES  

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the        
undersigned hereunto duly authorized.                                           

                     BORLAND INTERNATIONAL, INC.

                       /s/ Paul W. Emery, II
                             By: _______________________________

                   Paul W. Emery, II

Date:  January 31, 1997                                                         

9 

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K/A’ Filing		Date		First		Last			Other Filings
Filed on:		1/31/97		9
		12/3/96		2					8-K
For Period End:		11/18/96		1					8-K,  S-8
		9/30/96		2		6			10-Q
		3/31/96		2		6			10-K405/A
		12/31/95		2		6
		9/30/95		2		6
		6/30/95		2		6
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