Feeds

Corel sacks 66 in profitability drive

Q2 sales below expectations

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

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

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
Why has the web gone to hell? Market chaos and HUMAN NATURE
Tim Berners-Lee isn't happy, but we should be
Microsoft boots 1,500 dodgy apps from the Windows Store
DEVELOPERS! DEVELOPERS! DEVELOPERS! Naughty, misleading developers!
'Stop dissing Google or quit': OK, I quit, says Code Club co-founder
And now a message from our sponsors: 'STFU or else'
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Linux turns 23 and Linus Torvalds celebrates as only he can
No, not with swearing, but by controlling the release cycle
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
This is how I set about making a fortune with my own startup
Would you leave your well-paid job to chase your dream?
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
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.
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?