Feeds

Corel sacks 66 in profitability drive

Q2 sales below expectations

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
Windows 8.1, which you probably haven't upgraded to yet, ALREADY OBSOLETE
Pre-Update versions of new Windows version will no longer support patches
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Windows XP still has 27 per cent market share on its deathbed
Windows 7 making some gains on XP Death Day
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
US taxman blows Win XP deadline, must now spend millions on custom support
Gov't IT likened to 'a Model T with a lot of things on top of it'
Batten down the hatches, Ubuntu 14.04 LTS due in TWO DAYS
Admins dab straining server brows in advance of Trusty Tahr's long-term support landing
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.