Corel Announces Second Quarter Results Company Continues to Post Profits
Friday, June 29, 2001
Ottawa, Canada – Jun 27, 2001 Corel Corporation (NASDAQ: CORL, TSE: COR) today announced results for its second quarter ended May 31, 2001. Revenues for the second quarter of fiscal year 2001 were $36.0 million, which compares favorably with revenues of $36.6 million for the same quarter last year, and represents an 11 per cent increase over revenues of $32.5 for the first quarter of fiscal 2001. Cash, cash equivalents and marketable securities at the end of the quarter stood at $126.2 million, compared with $9.8 million at the end of the second quarter in fiscal 2000. All figures are reported in US currency. Net income for the quarter was $2.3 million or $0.02 per share fully diluted, compared with a net loss of $23.6 million or ($0.36) per share for the same period last year, and $534,000 or 1 cent per share in the first quarter of fiscal 2001. Corel's year-to-date total revenues for fiscal 2001 are $68.5 million. By comparison, Corel reported revenues of $80.7 million for the first six months of fiscal 2000, producing a net loss of $36.0 million or $(0.55) per share fully diluted. The company's year-to-date net profit is $2.8 million or $0.03 per share fully diluted. "This is the second consecutive quarter that we have posted a profit – a significant achievement, especially given the current economic uncertainty," said John Blaine, chief financial officer at Corel Corporation. "We continue to improve Corel's financial position by managing our daily operations for long-term, sustainable growth, rather than short-term gains. Our ability to achieve these early profits is a testament to how much more efficiently we are running the business." "We are very pleased with our second-quarter results," said Derek Burney, president and CEO of Corel Corporation. "We've increased our total revenues and net profit over the previous quarter and we intend to continue that upward trend over the next several quarters. Today's results confirm that we are ahead of schedule in executing our new corporate growth strategy. Over the short-term, we are moving rapidly to increase revenues by becoming truly a ‘customer-centric' organization, in which our guiding philosophy is to anticipate our customers' needs. With that in mind, we have exciting plans in the works for the upcoming quarters, including the launch of a full complement of creative products optimized for Mac OS X."