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Technology Stocks : Corel Corp.

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To: Robert Lewis who wrote (1021)	7/23/1997 9:48:00 AM
From: BrownBag	of 9798

Bob, I believe we should see direction changes in the next quarter based on the changes in management. You are correct that the next quarter is very important. Often in the forum we see the NC stuff and Java stuff lumped together under Corel's name. Corel Computer Corporation obviously has a big impact on Corel since they are currently wholly owned by Corel, but they still need to be looked at separately. Eid Eid was the VP of software development at Corel, and he had a particular vision. He is now at CCC working on that vision. Paul Skillen is now WP of Software Development. He may be an old time Corel employee, but he is located in Orem these days and his background at the company has been in business productivity applications. Corel has said through the press that much of the Corel Office for Java is being transferred to Orem. Also that some of the current Orem programmers will be moving to Java. Since Paul has been VP, Corel has divested itself of a number of products that were drags on the company. He may not have been the instigator of that, but it has happened on his watch. Corel is not about to announce anything or do anything unusual for the next little while because of the release of Perfect Office Pro. That is and will continue to be the bread winner for the immediate future. That is also the area that is Paul's speciality rather than Eid's. The jist of this long message is that Corel is not going to shake things up while the big money provider is releasing. After the product is released we need to remember that much of the Software direction is coming from Paul and not Eid. At some point we should see direction changes based on a different vision. I think that will happen after the release. Eid has big expectations for Corel to supply Java software for his companies NC, but Corel does not supply software just to CCC. They also have to worry about the larger market. Perhaps that is one of the best things about CCC coming in to existence and Eid going there. He can worry about NC's to the exclusion of everything else and Paul can worry about company software direction that is not tied to the CCC direction. Paul is a software man, not a hardware man. That makes me happy. Good investing.

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