Feeds

Corel sacks 66 in profitability drive

Q2 sales below expectations

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Corel has rid itself of just under ten per cent of its worldwide workforce in a bid to save $4.2 million worth of operating expenses and better "manage expenses relative to its expected revenue performance".

The software company today published its Q2 results: it lost $5.6 million (six cents a share) on sales of $32.2 million. Both figures represent a small improvement on Corel's performance in Q2 2002. Then, it lost $6.4 million (seven cents a share) and realised revenues of $30.8 million. Last quarter, its made sales worth $28.3 million, but only lost just over half a million US dollars.

The company's figures were below expectations, CEO Derek Burney said in a statement, hence the need to lower the headcount by 66 workers, or nine per cent of the workforce. Corel will take a $655,000 charge to cover the redundancies during its next quarter, he added. The company gained a $3.9 million tax refund during the quarter, so next month's charge is effectively covered. It added the refund to its cash pile, which totalled $75.5 million at the end of the quarter.

Against Corel was $2.5 million worth of one-off charges related to its proposed acquisition by US-based Vector Capital - to which some shareholders are opposed claiming its offer undervalues the company - other severance payments and the strength of the Canadian dollar against other currencies.

Burney's goal, he reiterated, is to bring Corel to profitability this year.

Corel's core graphics and office productivity divisions yielded the biggest contributions to the bottom line - $14 million from the Graphics Solutions unit and $11.2 million from the other. But despite launching a raft of updates to its product line, Graphics Solutions' revenue fell 15.6 per cent year-on-year and 8.6 per cent sequentially. Corel blamed its failure to get the Simplified and Traditional Chinese, and Korean versions of CorelDraw out the door. It didn't sell so well in Germany, either. WordPerfect Office sales were up, boosting that units sales 33 per cent year-on-year and 66.6 per cent sequentially.

But Corel sounded a warning: while sales of WordPerfect Office were up, the increase isn't in line with the boost seen when the suite has been updated in the past.

Corel's XML Solutions division saw sales increase 46.6 per cent year-on-year to a mere $456,000. Of greater concern is the 60 per cent sequential decline. The Process Management Solutions division posted sales of $2.2 million, fractionally down on last quarter and down 11.2 per cent from this time last year. ®

Related Story

Corel shareholders rebel

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Google+ goes TITSUP. But WHO knew? How long? Anyone ... Hello ...
Wobbly Gmail, Contacts, Calendar on the other hand ...
Preview redux: Microsoft ships new Windows 10 build with 7,000 changes
Latest bleeding-edge bits borrow Action Center from Windows Phone
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Microsoft promises Windows 10 will mean two-factor auth for all
Sneak peek at security features Redmond's baking into new OS
DEATH by PowerPoint: Microsoft warns of 0-day attack hidden in slides
Might put out patch in update, might chuck it out sooner
Google opens Inbox – email for people too stupid to use email
Print this article out and give it to someone techy if you get stuck
Redmond top man Satya Nadella: 'Microsoft LOVES Linux'
Open-source 'love' fairly runneth over at cloud event
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
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.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.