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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
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BORLAND INTERNATIONAL, INC.
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(Exact name of registrant as specified in charter)
Delaware 33-80946 94-2895440
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
100 Borland Way, Scotts Valley, California 95066-3249
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (408) 431-1000
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Not applicable
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(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)
<TABLE>
<CAPTION>
BORLAND OEC
SEPTEMBER 30, SEPTEMBER 30, PRO FORMA
1996 1996 ADJUSTMENTS COMBINED
-------- ------- -------------- ---------
<S> <C> <C> <C> <C>
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
======== ======= ============= ========
</TABLE>
See Accompanying Notes to Pro Forma Unaudited Combined Condensed Financial
Statements.
3
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BORLAND AND OEC
PRO FORMA UNAUDITED COMBINED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- ------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
======== ======= ======== ========
</TABLE>
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)
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
-------------------------------
1996 1995 1994
-------- --------- -------
<S> <C> <C> <C>
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
======== ========= ========
</TABLE>
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:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------- -----------------------
1996 1995 1996 1995
------ ------ ------ ------
(IN THOUSANDS) (IN THOUSANDS)
<S> <C> <C> <C> <C>
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)
======== ======== ========
</TABLE>
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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
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