Feeds

Corel warns of doubling loss in Q2

Revenues falling too...

  • alert
  • submit to reddit

Boost IT visibility and business value

It just keeps getting worse for Corel. Having announced plans to sack 320 workers and deprive CEO Michael Cowpland of his salary - all in an attempt to save $40 million in operating expenses - the company now has to face narrowing revenues and a plummeting loss.

Corel said today its second fiscal quarter will see a loss of $22-24 million - roughly double that of Q1 2000 - on revenues of $37-38 million. For the same period last year, the company recorded revenues of $70.5 million and a profit of $9.7 million.

Revenues for Q1 2000 were $44.1 million, with a loss of $12.4 million.

The silver lining on Corel's cloud is that, according to CFO John Blaine, the company's operating expenses will be lower in Q2 than they were in Q1. Maybe, but that isn't going to help much in Q3, when the cost of all those job cuts will begin to be felt in Corel's bottom line.

Another ray of hope is that while Corel's revenues are down, they're only off by around 16 per cent - an appreciable increase but not one that implies (at least not yet) that Corel's users are deserting the company. If the company can complete its cost-cutting measures without significant falls in revenue, it will at least have a basis to build the business back up. But that's going to take some killer products - and Corel doesn't have many of those under its sleeve. ®

Build a business case: developing custom apps

More from The Register

next story
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
Mozilla keeps its Beard, hopes anti-gay marriage troubles are now over
Plenty on new CEO's todo list – starting with Firefox's slipping grasp
Apple: We'll unleash OS X Yosemite beta on the MASSES on 24 July
Starting today, regular fanbois will be guinea pigs, it tells Reg
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
Cloudy CoreOS Linux distro declares itself production-ready
Lightweight, container-happy Linux gets first Stable release
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.