Feeds

Corel to spin off Linux desktop OS biz

Plans return to profit in Q3

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Corel said today it is pinning its hopes of a return to profitability in Q3 on its graphics software business.

Speaking from Ottawa, execs said the company would pump up its graphics product line over the next couple of years, possibly through acquisitions in areas such as the Web graphics market.

Corel did not, as expected, reveal the sale of its Linux arm - instead it said it was "currently pursuing opportunities" to spin off the desktop operating system business of the Linux division.

It still plans to keep an interest in the operation and will continue to have Linux versions of its software. It also plans to upgrade current users of its WordPerfect software - rather than spend resources trying to convert rival software customers.

This is all forecast to bring Corel back into the black by the third quarter of this year, with revenues increasing 20 per cent every year for the next three years.

Freshly appointed Corel CEO Derek Burney said it had taken "a lot of work to get our house in order", but that "we want to turn this company around and we plan to do just that".

Most of the sales growth is expected to come from its graphics software, while Corel also wants to plough deeper into the Macintosh market and looking at wireless imaging.

Burney denied the Canadian company was looking to sell off its WordPerfect division.

Last year Corel slashed 21 per cent of its workforce as part of a plan designed to save it around $40 million annually.

This morning its share price dropped almost 19 per cent to C$4.80 ($3.90). ®

Related Stories

Corel responds to Linux sales speculation
Where next for Corel?
Corel Linux sell-off nearly a done deal
Corel stems sales shrinkage
Corel sheds 320 jobs
Corel warns of cash-flow crisis if Inprise merger fails

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
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.
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.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.