BORL's JBuilder sales falling off a cliff

Borland Announces Preliminary Financial Results for First Quarter 2005
Thursday April 7, 4:15 pm ET

"Additionally, the Company noted a greater than anticipated
decline in revenue from JBuilder, its Java IDE offering."


I listened to BORL conference call, and it sounds like BORL
mgmt have thrown in the towel on JBuilder -- I guess that's
old news after BORL broke down and joined Eclipse

I really don't agree with BORL mgmt saying Java IDE's are
commoditized. I don't think IntelliJ and Eclipse are
interchangeable, esp. for existing uesrs. Maybe Eclipse
and IntelliJ are just beating the stuffing out of JBuilder.

The upside for IntelliJ/Ecslipse is that BORL has probalby
slashed and burned R&D for JBuilder, which will hasten
it's decline.

Here's some snippets from Q&A:

Q: Is JBuilder something we shouldn't assume will snapback
this year?

A: We have been discussing the commodization of JBuilder
and what we saw today surpsised us. It declined much more
than we expected, and in a commodiditized market, that's a
one way street.

Q: How far are we from the bottom on JBuilder revenues? You
said you expected it to more gradually decline in 2005,
after what happened in 2004. Are we close to a bottom,
where further disappointments in JBuilder sales won't
affect your overall financial goals or do we still have a
ways to go?

A: We are looking very closely at the license and the
maintenance line for JBuilder renewals in next Q. We are
taking specific steps to maximize the value. Having said
that, my level of confidence is that it will continue to
decline despite our best efforts. So, there is some
additional downside in the quarters ahead.

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