STOCKREPORTS		 Borland International, Inc. Nasdaq Symbol BORL
19-JUL-97 Industry:
Computer (Software & Services)		 Summary: Borland is primarily engaged in the sale of software tools and database software for personal computers.

Recent Price 6.81
52 Wk Range 8.75 - 4.94		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
1-
Fair Value
3.06
Risk
HIGH
Earn/Div Rank
C
Technical Evaluation:
BEARISH since 07/97
Rel. Strength Rank (1 Lowest - 99 Highest)
26
Insider Activity
Neutral

Overview 02-MAY-97

Revenues in FY 97 (Mar.) declined sharply, owing to an absence of new products, organizational uncertainties and slowing sales of existing, mature products as customers await new offerings. Revenues are expected to rise modestly in upcoming quarters from the recent weak results, on the shipment of new software development tools. Profitability should be penalized by the lower volume, despite benefits from restructuring programs and ongoing cost controls; however, narrowing losses are expected, and the company could turn profitable in the second half of FY 98. Results in FY 97 include $0.09 a share in nonrecurring gains recorded in the first quarter, as well as $0.33 a share in acquisition and restructuring charges recorded in the third quarter.

Valuation 02-MAY-97

The shares collapsed in mid-1996 on disappointing financial results. Revenues from Delphi desktop products, which, combined with several significant restructuring and expense reduction programs, had returned the company to profitability in FY 96, have been weak in recent periods. The company is expected to benefit from the shipment of several major new products including software development tools: C++Builder, Delphi 3, JBuilder and a new development tool for the Java programming language. Successful sales of these new products are key to the company's return to profitability. However, the market is very competitive and the company's recent string of losses and weakened financial condition could make prospective customers hesitant to purchase Borland products. While expense levels have been lowered by the latest restructuring program, it will take time to realize all expected savings. The shares are expected to underperform the market in the coming months.

Key Stock Statistics

S&P EPS Est. 1998 0.20
P/E on S&P Est. 1998 34.1
Dividend Rate/Share Nil
Shs. outstg. (M) 37.0
Avg. daily vol. (M) 0.411
Tang. Bk. Value/Share 2.42
Beta 2.85
Shareholders 2,800
Market cap. (B) $0.252
Inst. holdings 32%
Value of $10,000 invested 5 years ago:$ 744

Fiscal Year Ending Mar. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 34.54 53.77 69.14 123.4 115.0 137.0
Q2 36.41 51.32 81.29 107.4 128.0 114.0
Q3 36.76 47.26 48.14 111.7 104.0 115.0
Q4 37.17 62.86 55.50 51.05 117.0 117.0
Year 151.4 215.2 254.1 393.5 464.0 483.0

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 -0.45 0.10 1.88 0.22 0.06 0.47
Q2 -0.31 0.08 0.01 0.11 0.20 -4.21
Q3 -0.81 0.03 -0.80 -0.11 -2.34 0.28
Q4 -1.15 0.24 -1.86 -2.84 0.19 -1.05
Year -2.96 0.45 -0.43 -2.62 -1.87 -4.29

Dividend Data: No cash dividends have been paid.

Business Summary 02-MAY-97

Borland International is engaged in the design, production and marketing to businesses and software developers of computer software products and services, mainly programming language and database management tools. The company's primary products operate on personal computers that run under the Windows and Windows 95/NT operating systems.

The Desktop and LAN Development Tools Group provides products and services that assist users -- small developers and single users on stand-alone computers, as well as multiple users on personal computers connected by local area networks -- in developing new software programs. Language development products include Delphi, a high performance, rapid application software development tool; Borland C++ and Turbo C++ programming language development environments; as well as Paradox and Visual dBASE database management products.

The Client/Server Development Tools Group serves the software developer working in a "client/server" environment where data is stored on both the desktop PC and remote database servers. Products include the Delphi Client/Server Suite, an advanced developer tool; ReportSmith, a set of database design and analysis tools; as well as Interbase, an SQL-based relational database management system.

Internet and Intranet Development Tools include AppAccelerator, a compiler for Java applications.

Products are sold worldwide, primarily through independent distributors, dealers and original equipment manufacturers (OEMs) and also directly to corporate, governmental and educational customers and to individual end-users.

Important Developments

Feb. '97 Borland announced a restructuring plan to reduce operating costs, including an approximate 30% reduction in worldwide headcount (from which the company expects annual savings of about $30 million) as well as a change in marketing and support programs (annual savings of an additional $30 million).
Jan. '97 In the third quarter of FY 97 (Mar.), Borland recorded $11.9 million ($0.33 a share) in restructuring charges and other one-time costs related to the company's acquisition of Open Environment Corp. Results in the first quarter of FY 97 included a federal income tax benefit and related interest income of $2.9 million ($0.09 a share) stemming from a settlement reached with the IRS. In the fourth quarter of FY 95, the company recorded a $50 million ($1.49 a share after tax) restructuring charge.

Capitalization

Long Term Debt: $22,508,000 (3/97).

Per Share Data ($)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Tangible Bk. Val. 2.42 5.49 4.45 4.41 7.01 8.68 5.88 4.03 2.47 2.75
Cash Flow -2.63 0.96 0.37 -1.72 -1.01 -3.09 2.16 1.19 0.07 0.37
Earnings -2.96 0.45 -0.43 -2.62 -1.87 -4.29 1.81 0.90 -0.25 0.15
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Cal. Yrs. 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Prices - High 21 1/4 20 5/8 16 27 1/4 86 3/4 83 1/2 32 10 1/2 NA NA
- Low 4 3/4 6 1/8 6 12 3/4 19 3/4 27 7/8 9 7/8 9 5/8 NA NA
P/E Ratio - High NM 46 NM NM NM NM 18 12 NM NM
- Low NM 14 NM NM NM NM 5 10 NM NM

Income Statement Analysis (Million $)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Revs. 151 215 254 394 464 483 227 113 91.0 82.0
Oper. Inc. -64.5 30.0 -37.3 -18.8 3.3 46.5 44.3 18.2 1.1 5.8
Depr. 12.1 16.4 22.5 24.0 22.8 31.0 5.2 3.9 3.6 2.8
Int. Exp. 1.2 Nil 2.0 1.6 1.1 1.3 1.2 1.1 1.3 0.1
Pretax Inc. -106 17.4 -9.0 -63.0 -41.0 -124 42.0 15.0 -4.0 4.0
Eff. Tax Rate NM 18% NM NM NM NM 36% 20% NM 54%
Net Inc. -107 14.3 -12.0 -70.0 -49.0 -109 27.0 12.0 -3.0 2.0

Balance Sheet & Other Fin. Data (Million $)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Cash 54.4 74.7 70.0 68.0 75.0 110 42.0 43.0 10.0 9.0
Curr. Assets 79.0 133 104 116 175 240 83.0 66.0 29.0 36.0
Total Assets 193 256 245 298 342 365 136 87.0 53.0 54.0
Curr. Liab. 80.3 69.5 101 158 130 107 40.0 22.0 12.0 17.0
LT Debt 9.5 9.5 10.1 11.3 9.8 9.8 10.0 10.2 11.5 3.9
Common Eqty. 89.9 172 123 120 188 228 85.0 54.0 29.0 32.0
Total Cap. 109 181 133 132 198 238 95.0 64.0 41.0 36.0
Cap. Exp. 4.9 3.1 7.0 52.2 73.7 59.4 29.0 2.9 9.5 11.9
Cash Flow -95.9 30.7 10.3 -45.9 -26.5 -79.5 32.0 15.7 0.8 4.6

Curr. Ratio 1.0 1.9 1.0 0.7 1.3 2.3 2.1 2.9 2.3 2.1
% LT Debt of Cap. 8.7 5.2 7.6 8.6 4.9 4.1 10.5 15.8 28.3 10.7
% Net Inc.of Revs. NM 6.6 NM NM NM NM 11.8 10.4 NM 2.1
% Ret. on Assets NM 5.7 NM NM NM NM 23.7 16.0 NM 4.1
% Ret. on Equity NM 9.7 NM NM NM NM 38.0 27.1 NM 6.1

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--100 Borland Way, Scotts Valley, CA 95066. Tel--(408) 431-1000. Website--http://www.borland.com Chrmn & CEO--D. W. Yocam. VP & CFO--P. Emery. VP & Secy--R. H. Kohn. Dirs--G. Hara, D. Heller, S. Lewis, W. F. Miller, H. J. Saal, D. W. Yocam. Transfer Agents & Registrars--Chemical Trust Co. of California, SF; Ravensbourne Registration Services Ltd., Beckenham, Kent, England. Incorporated--in Delaware in 1989. Empl-- 938. S&P Analyst: Peter C. Wood, CFA


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