Corel Announces 3Q Results, Third Consecutive Profitable Quarter
Thursday, September 27, 2001
OTTAWA- Sept. 26, 2001--Corel Corporation today announced results for its third quarter ended August 31, 2001. Revenues for the third quarter of fiscal year 2001 were $34.2 million, which compares with revenues of $36.4 million for the same quarter last year, and revenues of $36.0 million for the second quarter of fiscal 2001. Net income for the quarter was $500,000 or $0.01 per share fully diluted, compared with a net loss of $10.7 million or ($0.15) per share for the same period last year, and $2.3 million net income or $0.02 per share in the second quarter of fiscal 2001. Cash, cash equivalents and marketable securities at the end of the quarter stood at $123.8 million, compared with $11.6 million at the end of the third quarter in fiscal 2000. All figures are expressed in US currency. Corel's year-to-date revenues for fiscal 2001 are $102.7 million with year-to-date net income of $3.4 million or $0.03 per share diluted. By comparison, Corel reported revenues of $117.1 million for the first nine months of fiscal 2000, producing a net loss of $46.8 million or $(0.69) per share. "The results of the past quarter indicate that our financially disciplined approach is working,'' said John Blaine, chief financial officer at Corel Corporation. "Despite the continuing economic uncertainty and the slowdown typically experienced in our third quarter, we were able to generate a profit. The coming quarter may present some obstacles given the decline in consumer confidence and the political developments of the past several weeks. Nevertheless, with a strong balance sheet and a continued emphasis on rigorous financial management, we believe we will be well equipped to address the challenges ahead.'' "When we announced our new corporate strategy last January, I stated that we would be profitable again by the third quarter of this fiscal year,'' said Derek Burney, president and CEO of Corel Corporation. "Today, I am pleased to report that we have delivered on that promise. As we've demonstrated over the past three quarters, we are determined to fulfill our commitments to shareholders and customers. We are managing our costs responsibly and taking decisive steps to increase our revenues over the long term. This quarter, we released four new products, introduced a new line of professional creative applications for Mac OS X and announced our plans to acquire Micrografx and SoftQuad. These accomplishments represent significant steps forward in the execution of our growth strategy as we continue our work to build a stronger and even more successful Corel.''