Feeds

Corel Q2 loss widens, sales slump

In line with predictions

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Corel's recent prediction of a widening Q2 loss and falling revenues proved pretty close to the mark yesterday when the Canadian software company announced its second quarter results.

For the three months period, the company lost $23.6 million - right in the middle of the $22-24 million range it had warned its loss would fall into - on sales of $36.6 million. The company also reported a $1.1 million loss from equity investments, balanced by a $1.2 million gain from the sale of 560,000 GraphOn shares.

For the same period last year, Corel reported revenues of $70.5 million - yesterday's figures mark a 48 per cent fall year on year - and $9.7 million in profit.

That said, Corel CFO John Blaine was bullish about the company's prospects. "What we're saying now is that if we are successful in the implementation of our cost-savings plan, that the results for our Q3 are expected to be better than both Q1 and Q2.''

Possibly. Ridding itself of 320 workers will save Corel some $11 million in salary payments, but that still leaves severence pay. It also leaves some $29 million to be found to make up the $40 million Corel needs to save through cut-backs. The C$30 million ($20.5 million) funding the company found after the Inprise/Borland merger collapsed will help.

Still, it's hard to see the company's revenues rebounding. Corel is happy to shout about how Linux is going to bring in major rewards, but the open source OS contrinbuted only $2.6 million to the Q2 sales, so it's a long way from being the company's mainstay. Though if sales of its application software continues to fall off so rapidly, Linux could quickly become one.

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

Related Story

Corel warns of doubling loss in Q2

Beginner's guide to SSL certificates

More from The Register

next story
ONE MILLION people already running Windows 10
A third of them are doing it in VMs, but early feedback focuses on frippery
Sign off my IT project or I’ll PHONE your MUM
Honestly, it’s a piece of piss
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Torvalds CONFESSES: 'I'm pretty good at alienating devs'
Admits to 'a metric ****load' of mistakes during work with Linux collaborators
Sway: Microsoft's new Office app doesn't have an Undo function
Content aggregation, meet the workplace ... oh
Do Moan! MONSTER 6-day EMAIL OUTAGE hits Domain Monster
Customers freaked out by frightful service
Ploppr: The #VultureTRENDING App of the Now
This organic crowd sourced viro- social fertiliser just got REAL
Return of the Jedi – Apache reclaims web server crown
.london, .hamburg and .公司 - that's .com in Chinese - storm the web server charts
NetWare sales revive in China thanks to that man Snowden
If it ain't Microsoft, it's in fashion behind the Great Firewall
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.