Feeds

Corel Q2 loss widens, sales slump

In line with predictions

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Choosing a cloud hosting partner with confidence

More from The Register

next story
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Microsoft: Your Linux Docker containers are now OURS to command
New tool lets admins wrangle Linux apps from Windows
Bada-Bing! Mozilla flips Firefox to YAHOO! for search
Microsoft system will be the default for browser in US until 2020
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

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.
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.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.