OTTAWA--Dec. 5, 2001--Corel offered an update to the company's strategy for fiscal 2002, including new market opportunities, financial projections, and more details on the Micrografx and SoftQuad acquisitions.
Executives presented the next phase of Corel's growth strategy during a teleconference and Webcast. For fiscal 2002, Corel's strategy is centered around a three-point initiative which will see the company segment the market to address key customer profiles; make strategic investments to capture new markets; and develop solutions for emerging markets in order to address the evolving needs of its global customer base.
Corel says their financial house is in order and they have strong cash reserves. Said Derek Burney, president and CEO of Corel, “Our future business will capitalize on the company's technology assets, both organic and acquired, as we invest to capture high-growth emerging markets and establish ourselves as a leading provider of enterprise solutions in the areas of technical illustration, Enterprise Process Management and XML content solutions. While these investments will impact our bottom line in the short term, we are confident they will pave the way for significant growth over the long term.''
The company announced that it expects to realize total revenues for fiscal 2002 of between $170 million and $180 million, an increase over expected fiscal 2001 revenues. Despite this revenue growth, the company's increase in strategic investments is expected to result in a net loss of between $23 million and $31 million or a loss of between $0.20 and $0.27 per share. All figures are expressed in US currency. These figures do not include non-cash amortization costs for the acquisitions of Micrografx, Inc. and SoftQuad Software Ltd. With Corel's fourth quarter and fiscal 2001 year end having just concluded on November 30, 2001, company officials did not comment on those results during the presentation.
Corel also announced that it now expects its acquisition of SoftQuad to close prior to the end of the first quarter of Corel's fiscal 2002, ending February 28, 2002. Representatives from both Corel and SoftQuad are now awaiting regulatory approval of the required filings and continue to work on the details of a comprehensive integration plan for the two companies. Details of the integration plan will be announced following the closing of the deal.
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