Inprise issued a first quarter profit warning on Tuesday and announced it may split itself into two separate companies as part of a comprehensive strategic review.
The software development tools company, formerly known as Borland, is retaining investment bank, Hambrecht & Quist, to advise it on strategic alternatives.
Although it expects the review to be completed this quarter, Inprise also said it believed it would need to increase investment to achieve sustainable long term growth and so was likely to report a loss for its full fiscal year too.
For its first fiscal quarter, it expects to turn in a loss of between $0.54 and $0.56 per share, including one time charges of between $0.33 and $0.35 related to restructuring and severance costs and compensation expenses racked up on behalf of its Interbase subsidiary.
Analysts surveyed by First Call had estimated that Inprise would break even for the quarter, and its shares fell $0.1563 on the news to close at $3.375.
Dale Fuller, who was named interim president and chief executive of the company on Tuesday, following the resignation of incumbant Delbert Yocam last week, said: "My focus will be on developing a strategy for achieving substantial long term growth through focused investment in the company in order to better meet the evolving needs of our customers."
"I have already begun working with the board and management to evaluate all aspects of the company's great potential. Going forward, we are determined to restore market share," he continued. Fuller was formerly president and chief executive of Whowhere?, an Internet site that was acquired by Lycos last year.
But Inprise also added that its board had requested Yocam's resignation because of philosophical differences about the firm's growth strategy, although it reaffirmed its confidence in the accuracy of its reported financial statements. The firm is also looking for a new chief financial officer, following the resignation of Kathleen Fuller, which was also requested by the board.
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