| | Exhibit
99.1 | 
| | ------------ | 

| | 
| | 

| | Investor
Contact: | 
| | ----------------- | 

| | Jacquie
Ross | 
| | ------------ | 

| | (408)
863-2917 | 
| | -------------- | 

| | jross@borland.com | 
| | ----------------- | 

| | Media
Contact: | 
| | -------------- | 

| | Kathryn Quigley | 
| | --------------- | 

| | (408)
863-2911 | 
| | -------------- | 

| | kquigley@borland.com | 
| | -------------------- | 

BORLAND ANNOUNCES THIRD QUARTER 2003 FINANCIAL RESULTS

| | SCOTTS
VALLEY, Calif.  October 23, 2003  Borland Software Corporation (Nasdaq NM:
BORL) today announced financial results for its third quarter of 2003. | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Revenues
for the third quarter were $70.6 million, an increase of 16% over $60.7 million reported
in the third quarter of 2002, and a decrease of 7% from $76.3 million in the second
quarter of 2003. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| | Net
loss for the third quarter, including various non-operating charges, was $12.2 million, or
$(0.15) per diluted share, which compares to a net loss of $5.0 million, or $(0.06) per
diluted share, in the second quarter of 2003, and to net income of $5.0 million, or $0.07
per diluted share, reported in the third quarter of 2002. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| | Net
income, excluding various non-operating charges, was $148,000, or break-even on a per
share basis, which compares to net income of $3.5 million, or $0.04 per diluted share, for
the second quarter of 2003, and to $6.3 million, or $0.09 per diluted share, for the third
quarter of 2002. Non-operating charges included, as applicable, restructuring,
amortization of intangible assets, acquisition-related expenses, in-process research and
development and other charges of $12.8 million in the third quarter of 2003, $1.4 million
in the third quarter of 2002, and $8.5 million in the second quarter of 2003. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | The
company generated $5.3 million in cash flow from operations and closed the third quarter
of 2003 with $207.2 million in cash and short-term equivalents. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| | Our
independent and integrated application lifecycle management solutions continue to
resonate well in the marketplace, and we are more convinced than ever that our strategy
will drive long term growth, said Borlands president and chief executive
officer, Dale L. Fuller. The third quarter was challenging as we continued to work
through the transition of our sales force from a point-product sale to a solution sale.
To accelerate that transition, weve made some very positive organizational changes
and management additions that I believe will act as the foundation for Borlands
next phase of growth. | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | In
calculating net income, excluding various non-operating charges, Borland utilizes a
Non-GAAP financial measure of net income that excludes, as applicable, restructuring,
amortization of intangible assets, acquisition-related expenses, in-process research and
development and other charges (Non-GAAP net income). Investors are encouraged
to review the reconciliation of Non-GAAP financial measures to the most directly
comparable GAAP measures as provided below. | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Business
Outlook | 
| | ---------------- | 

| | Management
provided the following financial guidance: | 
| | ----------------------------------------------------- | 

| | For
the quarter ending December 31, 2003, on a GAAP basis: | 
| | ---------------------------------------------------------- | 

| |  | The
Company expects that revenues will be within the range $71  $75 million. | 
| | - | ----------------------------------------------------------------------------- | 

| |  | Forecast
earnings per share should be in the range of $(0.06) to $(0.04). | 
| | - | ------------------------------------------------------------------------- | 

| | For
the quarter ending December 31, 2003, on a Non-GAAP basis: | 
| | -------------------------------------------------------------- | 

| |  | Forecast
earnings per share should be in the range of $0.03 to $0.05. | 
| | - | --------------------------------------------------------------------- | 

| | The
following table shows our Non-GAAP anticipated results for the quarter ending December 31,
2003 reconciled to the GAAP anticipated results for the quarter ending December 31, 2003.
Our Non-GAAP anticipated results exclude, as applicable, amortization of intangible
assets, acquisition-related expenses, and other charges. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

|                                  | Estimated per Share
|--------------------------------- | -------------------
|
|
|
|GAAP net loss                     |                    
|Amortization of intangible assets |                    
|Acquisition-related expenses      |                    
|                                  |                    
|Non-GAAP net income               |                    
|                                  |                    

| | Earnings
Conference Call Information | 
| | ------------------------------------ | 

| | The
Borland Software Corporation third quarter teleconference and simultaneous webcast is
scheduled to begin at 2:30 p.m., Pacific Time, on Thursday, October 23, 2003. To access
the live webcast, please visit Borlands website at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=BORL&script=2100 at
least 30 minutes prior to the scheduled time to download any necessary audio or plug-in
software. A replay will be available approximately two hours after the conference call
ends, and will be available through midnight November 3, 2003. The replay number is (888)
286-8010, or (617) 801-6888 for international callers, and the passcode is 22452144.
Separately, the archived Webcast will be available on our website following the call. Any
financial or statistical information posted on the companys website in connection
with the teleconference will be available at:
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=BORL&script=2100. | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Non-GAAP
Financial Measures | 
| | --------------------------- | 

| | Borland
continues to provide all information required in accordance with generally accepted
accounting practices (GAAP), but it believes that evaluating its ongoing operating results
may be difficult if limited to reviewing only GAAP financial measures. Accordingly,
Borland uses Non-GAAP financial measures of its performance internally to evaluate its
ongoing operations and to allocate resources within the organization. Borlands
management does not itself, nor does it suggest that investors should, consider such
Non-GAAP financial measures in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. The Non-GAAP financial measures used by
Borland may not be consistent with the presentation of similar companies in Borlands
industry. However, Borland presents such Non-GAAP financial measures in reporting its
financial results to provide investors with an additional tool to evaluate Borlands
operating results in a manner that focuses on what it believes to be its ongoing business
operations. Borlands management believes it is useful for itself and investors to
review both GAAP information that includes the expenses, charges, gains, and losses
mentioned below and the Non-GAAP measure of net income that excludes such charges to have
a better understanding of the overall performance of Borlands business and its
ability to perform in subsequent periods. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Borland
computes its Non-GAAP financial measure of net income by adjusting GAAP net income to
exclude, as applicable, the impact of restructuring, amortization of intangible assets,
acquisition-related expenses, in-process research and development, and certain income and
one-time charges and benefits. Management believes that the inclusion of this Non-GAAP
financial measure provides consistency and comparability with past reports of financial
results and has historically provided comparability to similar companies in Borlands
industry, many of which present the same or similar Non-GAAP financial measures to
investors. Whenever Borland uses such a Non-GAAP financial measure, it provides a
reconciliation of Non-GAAP financial measures to the most closely applicable GAAP
financial measure. Investors are encouraged to review the related GAAP financial measures
and the reconciliation of these Non-GAAP financial measures to their most directly
comparable GAAP financial measure. | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | Borland
excludes restructuring charges, including (i) employee severance and other termination
benefits, (ii) lease termination costs and other expenses associated with exiting a
facility, and (iii) other costs associated with terminating contracts, from its Non-GAAP
financial measure of net income. Expenses related to restructuring have, in some cases,
had a significant cash impact and effect on net income as measured in accordance with
GAAP. However, Borlands management believes such restructuring charges are periodic
costs incurred to realign its operating expenses with its anticipated future revenues and
consequently, does not consider these restructuring costs as a normal component of its
expenses related to ongoing operations. As a result, Borlands management believes it
is useful for itself and investors to review both GAAP information that includes such
charges and Non-GAAP measures of net income that exclude these charges to have a better
understanding of the overall performance of Borlands ongoing business operations and
its performance in the periods presented. | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | In
accordance with GAAP, Borland regularly amortizes the remaining value of certain
intangible assets over various periods. However, these amortization expenses result in no
ongoing cash expenditures and otherwise have no material impact on Borlands ongoing
business operations. Similarly, from time to time, Borland undertakes strategic
acquisitions and investments. The expenses related to such acquisitions and investments
may or may not result in a significant cash impact or effect on net income as measured in
accordance with GAAP, but their impact is not directly related to Borlands ongoing
business activities in such periods. Consequently, Borland excludes the amortization of
intangible assets, acquisition-related expenses and in-process research and development
expenses, as well as certain one-time charges that do not relate to ongoing operations,
from its Non-GAAP financial measures. Borland believes that examination of both GAAP
information that includes such charges and Non-GAAP financial measures that exclude such
expenses provides management with a comparative measure between product lines when
allocating available resources. Borland believes that if it did not provide such Non-GAAP
financial information, investors would not have all the necessary data to analyze
Borlands ongoing operations. | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | About
Borland | 
| | ------------- | 

| | Borland
Software Corporation (Nasdaq NM: BORL) is a world leader in platform independent software
development and deployment solutions that are designed to accelerate the entire
application development lifecycle. By connecting managers, testers, designers, developers,
and implementers in real time, Borlands software is designed to enable enterprises
worldwide to define and sustain their competitive advantage. For more information, visit:
http://www.borland.com or the Borland Developer Network at http://bdn.borland.com. | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| | All
Borland brand and product names are trademarks or registered trademarks of Borland
Software Corporation in the United States and other countries. All other marks are the
property of their respective owners. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| | Safe
Harbor Statement | 
| | --------------------- | 

| | This
press release contains forward-looking statements including statements regarding
Borlands strategic focus and near-term and long-term outlook. Such forward-looking
statements are based on current expectations that involve a number of uncertainties and
risks that may cause actual events or results to differ materially. Factors that could
cause actual events or results to differ materially include, but are not limited to: our
ability to sell multi-product solutions for the application development lifecycle; our
ability to integrate new members of our executive management and sales management teams;
the changing nature of the markets in which we operate, namely the maturing of certain
target markets and the uncertainty regarding the growth in other target markets; the
effect of some of our competitors making products that compete with our products available
to their customers for no or a very low fee; the ability to successfully integrate
acquisitions and to absorb the costs associated with acquisitions; market acceptance of
new or enhanced products or services developed, marketed or sold by Borland; and general
industry trends, general economic factors and capital market conditions. These and other
risks may be detailed from time to time in Borlands periodic reports filed with the
Securities and Exchange Commission, including, but not limited to, its 2002 Annual Report
on Form 10-K, its quarterly reports on Form 10-Q, and other SEC filings, copies of which
may be obtained from http://www.sec.gov/. Borland is under no obligation to (and expressly
disclaims any such obligation to) update any of the information in this press release if
any forward-looking statement later turns out to be inaccurate whether as a result of new
information, future events or otherwise. | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

###

| | Financial
Tables Follow | 
| | ----------------------- | 

---

| | BORLAND
SOFTWARE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share data, unaudited) | 
| | ----------------------------------------------------------------------------------------------------------------------------- | 

|                                                                                | Three Months Ended |  | Nine Months Ended |        
|------------------------------------------------------------------------------- | ------------------ |  | ----------------- | -------
|
|Revenues                                                                        |                    |  |                   |        
|Licenses and other                                                              |                    |  | $                 | 51,531 
|Services                                                                        |                    |  |                   | 19,042 
|                                                                                |                    |  |                   |        
|Total revenues                                                                  |                    |  |                   | 70,573 
|                                                                               
|Cost of revenues                                                                |                    | 
|Licenses and other                                                              |                    |  |                   | 3,433  
|Services                                                                        |                    |  |                   | 6,967  
|                                                                                |                    |  |                   |        
|Cost of revenues                                                                |                    |  |                   | 10,400 
|                                                                               
|Gross profit                                                                    |                    |  |                   | 60,173 
|                                                                               
|Operating expenses                                                              |                    | 
|Research and development                                                        |                    |  |                   | 15,604 
|Selling, general and administrative                                             |                    |  |                   | 43,441 
|Restructuring, amortization of intangibles and     acquisition-related expenses |                    |  |                   | 12,840 
|                                                                                |                    |  |                   |        
|Total operating expenses                                                        |                    |  |                   | 71,885 
|                                                                               
|Operating income (loss)                                                         |                    |  |                   | (11,712
|Interest income, net and other                                                  |                    |  |                   | 777    
|                                                                                |                    |  |                   |        
|Income (loss) before taxes                                                      |                    |  |                   | (10,935
|Provision for income taxes                                                      |                    |  |                   | 1,257  
|                                                                                |                    |  |                   |        
|Net income (loss)                                                               |                    |  | $                 | (12,192
|                                                                                |                    |  |                   |        
|                                                                               
|Income (loss) per share - Basic                                                 |                    |  | $                 | (0.15  
|Income (loss) per share - Diluted                                               |                    |  | $                 | (0.15  
|                                                                               
|Shares used in calculation of basic income (loss) per share                     |                    |  |                   | 80,858 
|Shares used in calculation of diluted income (loss) per share                   |                    |  |                   | 80,858 

---

| | BORLAND
SOFTWARE CORPORATION NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except per share data, unaudited) | 
| | -------------------------------------------------------------------------------------------------------------------------------------- | 

|                                                                                     | Three Months Ended |  | Nine Months Ended |       
|------------------------------------------------------------------------------------ | ------------------ |  | ----------------- | ------
|
|Revenues                                                                             |                    |  |                   |       
|Licenses and other                                                                   |                    |  | $                 | 51,531
|Services                                                                             |                    |  |                   | 19,042
|                                                                                     |                    |  |                   |       
|Total revenues                                                                       |                    |  |                   | 70,573
|                                                                                    
|Cost of revenues                                                                     |                    | 
|Licenses and other                                                                   |                    |  |                   | 3,433 
|Services                                                                             |                    |  |                   | 6,967 
|                                                                                     |                    |  |                   |       
|Cost of revenues                                                                     |                    |  |                   | 10,400
|                                                                                    
|Gross profit                                                                         |                    |  |                   | 60,173
|                                                                                    
|Operating expenses                                                                   |                    | 
|Research and development                                                             |                    |  |                   | 15,604
|Selling, general and administrative                                                  |                    |  |                   | 43,441
|Restructuring, amortization of intangibles and      acquisition-related expenses (1) |                    |  |                   |      
|                                                                                     |                    |  |                   |       
|Total operating expenses                                                             |                    |  |                   | 59,045
|                                                                                    
|Operating income                                                                     |                    |  |                   | 1,128 
|Interest income, net and other                                                       |                    |  |                   | 277   
|                                                                                     |                    |  |                   |       
|Income before taxes                                                                  |                    |  |                   | 1,405 
|Provision for income taxes (2)                                                       |                    |  |                   | 1,257 
|                                                                                     |                    |  |                   |       
|Net income                                                                           |                    |  | $                 | 148   
|                                                                                     |                    |  |                   |       
|                                                                                    
|Income per share - Basic                                                             |                    |  | $                 | 0.00  
|Income per share - Diluted                                                           |                    |  | $                 | 0.00  
|                                                                                    
|Shares used in the calculation of basic income per share                             |                    |  |                   | 80,858
|Shares used in the calculation of diluted income per share                           |                    |  |                   | 82,778

|
|

|(1) | Non-GAAP net income for the second quarter and nine months ended
September 30, 2003 excludes approximately $12.3 million and $38.7 million,
respectively, in, as applicable, restructuring, amortization of intangible
assets, acquisition-related expenses, in-process research and development,
and other charges. Non-GAAP net income for the second
quarter and nine months ended September 30, 2002 excludes approximately
$1.4 million and $4.5 million, respectively, in, as applicable,
restructuring, amortization of intangible assets, acquisition-related
expenses, in-process research and development, and other charges.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | In
prior years, we presented Non-GAAP net income including the tax effect of Non-GAAP
adjustments. In the current year, we have not tax affected the Non-GAAP
adjustments as we have a negative effective tax rate on a GAAP basis.
Therefore, we have presented Non-GAAP net income for the
quarter and nine months ended September 30, 2003 including the provision
for income taxes on a GAAP basis. To provide comparability to the current
year presentation, no adjustment was made to the provision for income taxes
included in the Non-GAAP income statement
in the quarter and nine months ended September 30, 2002.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

| | In
calculating both net income, excluding various non-operating charges, and EPS, excluding
various non-operating charges, Borland utilizes a Non-GAAP financial measure
of net income and net income per share. Investors are encouraged to review
the reconciliation of Non-GAAP financial measures to the most directly comparable GAAP
measures as provided below. | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

|                                                      | Three Months EndedSeptember 30, |  | Nine Months EndedSeptember 30,
|----------------------------------------------------- | ------------------------------- |  | ------------------------------
|
|
|                                                     
|GAAP net income                                       |                                 |  | $                             
|Restructuring                                         |                                 |  |                               
|Amortization of intangible assets                     |                                 |  |                               
|Acquisition-related expenses                          |                                 |  |                               
|Gain on investment                                    |                                 |  |                               
|In-process research and development                   |                                 |  |                               
|                                                      |                                 |  |                               
|Non-GAAP net income                                   |                                 |  | $                             
|Basic Non-GAAP net income per share                   |                                 |  | $                             
|Shares used in computing basic net income per share   |                                 |  |                               
|Diluted Non-GAAP net income per share                 |                                 |  | $                             
|Shares used in computing diluted net income per share |                                 |  |                               

---

| | BORLAND
SOFTWARE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, unaudited) | 
| | -------------------------------------------------------------------------------------------- | 

|                                                  | Sept 30, 2003 |  | Dec 31, 2002 |        
|------------------------------------------------- | ------------- |  | ------------ | -------
|ASSETS                                            |               |  |              |        
|Cash, cash equivalents and short-term investments |               |  | $            | 207,208
|Accounts receivable, net                          |               |  |              | 49,672 
|Property held for sale                            |               |  |              | 9,935  
|Property and equipment, net                       |               |  |              | 10,708 
|Goodwill and acquired intangibles                 |               |  |              | 218,220
|Other assets                                      |               |  |              | 21,897 
|                                                  |               |  |              |        
|Total assets                                      |               |  | $            | 517,640
|                                                  |               |  |              |        
|                                                 
|LIABILITIES AND STOCKHOLDERS EQUITY              |               | 
|Deferred revenues                                 |               |  | $            | 43,964 
|Other current liabilities                         |               |  |              | 87,240 
|                                                  |               |  |              |        
|Total current liabilities                         |               |  |              | 131,204
|                                                 
|Other long-term liabilities                       |               |  |              | 11,911 
|Minority interest                                 |               |  |              |       
|Stockholders equity                              |               |  |              | 374,525
|                                                  |               |  |              |        
|Total liabilities and stockholders equity        |               |  | $            | 517,640
|                                                  |               |  |              |