Corel Releases Preliminary Financial Results For 1Q
Friday, March 23, 2001
Ottawa, Canada – Mar 22, 2001 Corel Corporation (NASDAQ: CORL, TSE: COR) today announced that it expects to report a net income of up to $0.5 million for the first quarter ended February 28, 2001, ahead of its previously stated target of profitability by the third quarter of fiscal 2001. Revenues for the first quarter are now expected to be approximately $32.5 million, which is lower than the company's internal expectations. These expected results compare with a net loss of $12.4 million or ($0.19) per share on revenues of $44.1 million for the same period last year. All figures are reported in US currency. "We are pleased with these early signs of success with our new strategic direction for the company," said Derek Burney, president and CEO of Corel Corporation. "By returning the company to profitability earlier than anticipated, we are executing ahead of schedule one of the major milestones of our new growth strategy. "While our revenues were lower than we expected, our positive operating cash flow and earnings make it clear our hard work is paying off. We are committed to executing on our strategy for growth and are squarely focused on capitalizing on both the near and longer term opportunities. The immediate horizon includes the first major upgrade to our office suite in two years and the introduction of a full line of new graphics applications for the PC and Macintosh platforms." Cost of sales and operating expenses for this quarter are expected to be between $33 and $34 million resulting in a loss from operations of up to $1.5 million as compared to $62.8 million in costs and $18.7 million in operating losses for the same quarter last year. Interest income is expected to offset the operating loss and yield a modest net income. Final results, net of non-cash items, are also expected to demonstrate positive operating cash flow before payment of Novell obligations and other non-operating items.