Feeds

Corel Q2 loss widens, sales slump

In line with predictions

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

Providing a secure and efficient Helpdesk

More from The Register

next story
Microsoft on the Threshold of a new name for Windows next week
Rebranded OS reportedly set to be flung open by Redmond
Business is back, baby! Hasta la VISTA, Win 8... Oh, yeah, Windows 9
Forget touchscreen millennials, Microsoft goes for mouse crowd
SMASH the Bash bug! Apple and Red Hat scramble for patch batches
'Applying multiple security updates is extremely difficult'
Apple: SO sorry for the iOS 8.0.1 UPDATE BUNGLE HORROR
Apple kills 'upgrade'. Hey, Microsoft. You sure you want to be like these guys?
ARM gives Internet of Things a piece of its mind – the Cortex-M7
32-bit core packs some DSP for VIP IoT CPU LOL
Lotus Notes inventor Ozzie invents app to talk to people on your phone
Imagine that. Startup floats with voice collab app for Win iPhone
'Google is NOT the gatekeeper to the web, as some claim'
Plus: 'Pretty sure iOS 8.0.2 will just turn the iPhone into a fax machine'
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.