Borland stock gets boost on upgrade
Borland Software Corp.’s (Nasdaq: BORL) stock was upgraded by JP Morgan Tuesday after the company announced plans to relocate its corporate headquarters from Cupertino, Calif., to Austin, Tx.
Borland revealed its plans to relocate by the end of the year after the market closed on Monday.
The firm said it would expand its existing Austin R&D center with finance, human resources, facilities, IT and sales operations functions.
Tod Nielsen, the company's president and CEO, chief financial officer Erik Prusch, and head of human resources Jonathan Schoonmaker will also move to Austin.
"We are making this move to take advantage of an area that combines a strong talent pool with a cost-effective environment for Borland, so that we can continue to execute on our plan to profitability, while building our company for the future," Nielsen said in a written statement.
The company said it would continue to operate global marketing, legal, and the West Coast sales and services teams from its existing Cupertino facility.
Founded in 1983, Borland has posted net losses in three of the past five years, including a loss of $51.9 million on $304.7 million in revenue in 2006 and $29.8 million on $276.7 million in revenue in 2005.
Borland’s stock was up $0.27, or 4.9%, to $5.77 on Tuesday morning. Shares have traded between $4.81 (on May 17, 2006) and $6.17 (on Oct. 26, 2006) in the past year.
In November of 2006, JP Morgan downgraded the stock to “Underweight” from “Neutral.”
