Feeds

Corel makes money shock!

Fiscal conservatism

  • alert
  • submit to reddit

The essential guide to IT transformation

By abandoning its imperial pretensions, and concentrating on the desktop graphics stuff (and WordPerfect too) it does best, Corel has rediscovered the knack of making money.

In Q3, ended Aug 31, 2001, the Canadian software publisher declared a profit, not a big one - US$500K - but a profit nevertheless. And a profit for a third quarter in a row.

For the quarter, Corel produced sales of $34.2m (Q3: 2001 $36.4m), compared with revenues of $36m and net income of $2.3m for Q2, 2001. In Q3 last year, the company made a net loss of $10.7m.

And for the year to date, Corel turned net income of $3.4m on sales of $102.7m. Compare and contrast with the same period last year, when the company recorded a net loss of $46.8m on sales of $117.1m. All in all, a decent performance, especially considering the slowdown in consumer IT spend this year.

The company had cash and cash equivalents at the end of the quarter of $123m, so it looks grounded enough to withstand any further downturn in the market.

During Q3, Corel announced its intention to buy Micrografx, the veteran developer of consumer graphics software, for $32m in stock and Softquad, developer of HTML editor HotMetal pro, for $36m in stock.

The company also fulfilled its ambition of hiving off its Linux distro business. This is constructed as a licensing/small amount of equity/no cash (as far as we can see) deal. but the upshot is that, if things don't work out, Corel retains rights to the software. ®

Related Stories

Corel licenses off Linux distro
Corel buys SoftQuad, acquires XML brains trust
Corel buys Micrografx

Boost IT visibility and business value

More from The Register

next story
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Intel's Raspberry Pi rival Galileo can now run Windows
Behold the Internet of Things. Wintel Things
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
Eat up Martha! Microsoft slings handwriting recog into OneNote on Android
Freehand input on non-Windows kit for the first time
Linux kernel devs made to finger their dongles before contributing code
Two-factor auth enabled for Kernel.org repositories
Time to move away from Windows 7 ... whoa, whoa, who said anything about Windows 8?
Start migrating now to avoid another XPocalypse – Gartner
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.