Feeds

No Corel profit yet, but Cowpland optimistic

Sales are up, but a consolidation charge means profit escaped for another quarter

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Corel's sales for its Q3 increased by 46 per cent over the year earlier quarter and were sequentially up 13 per cent from the previous quarter. However, profit remained elusive. The loss reported yesterday was marginally down from the previous quarter and attributed to a one-time restructuring charge of $15.9 million for consolidation of Corel's Utah operations to its Ottawa HQ. Without this charge, the loss would have been changed to a $7.6 million gross profit. The cost of sales increased only 13 per cent, so the gross profit showed a 58 per cent increase over the year-earlier quarter. Expenses, apart from restructuring, were down significantly, mainly from a cut in advertising of $13 million over the year-earlier quarter. The cash and short-term investments are now $20 million, compared with $30 million at the end on November, when the financial year ended. Shares were unchanged at $2 1/16. The company said that despite the move, future product releases remain on schedule. Michael Cowpland, the CEO, said: "We anticipate a return to profitability by our fiscal year end. We believe that our results will continue to improve and are consequently targeting sustainable profitability beginning in the fourth quarter of fiscal 1998." Corel continues to experience a declining market share for its WordPerfect Suite and CorelDraw, although the growth in the market size provides some compensation. The worst may now be past. ® Click for more stories

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.