Corel income increases

Not much sign of improvement when it comes to sales, though

By Tony Smith • Get more from this author

Posted in Business, 28th June 2001 09:17 GMT

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Corel has found itself in the black once again, with a small profit of $2.3 million (two cents a share).

That's rather better than the $23.6 million loss is posted this time last year and up on the break-even figure of $534,000 it recorded for Q1 this year.

Sales were broadly static, with revenue dipping slightly from Q2 2000's $36.6 million to $36 million. The difference essentially shows the degree to which the company has cut costs over the last 12 months. The programme involved the loss of 320 jobs and ultimately saw the then CEO, Michael Cowpland, bail out of the company.

Q1 revenue came to $32.5 milion, and there's been very little fluctuation over the last five quarters, including the one reported on yesterday. Cost-cutting can only go so far, and Corel must address how it's going to build its business back up to the level enjoyed just a few years ago. The company is pinning its hopes on Microsoft's .NET initiative and the emerging market for Mac OS X applications. The company said at the beginning of the year that it wanted to sell of its Linux distribution, but it hasn't managed to find a buyer yet.

Corel's cash reserve now stands at $126.2 million, rather better than the $9.8 million it had in the bank this time last year. ®

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