Borders posted net income of $64.7 million, or $1.10 per diluted share, on $1.35 billion in revenue, for the fourth quarter ended Feb. 2. That compares with a $73.6 million loss, or $1.22 per share, on $1.37 billion in revenues in the same quarter last year.

But its fourth quarter performance wasn't enough to offset the preceding three quarters of red ink as the company posted a 12-month loss of $157.4 million, or $2.68 per share, on revenues of $2.84 billion. That compares with a loss of $151.3 million or $2.44 per diluted share, on revenues of $2.73 billion last year.

While Borders said it was profitable on an operating basis, with $9.2 million in net income, or 16 cents per diluted share in earnings, the company has retained J.P. Morgan Securities and Merrill Lynch to explore strategic alternatives including shopping the company in whole or pieces.

Borders also aligned a $42.5 million commitment from Pershing Square Capital Management to keep the chain liquid through the year. As part of the agreement, Pershing agreed to commit $125 million as the backstop purchaser of certain international assets. If those assets are not sold to a third party, the deal gives Pershing the right but not the obligation to acquire the assets.

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