Apologies if this has been posted already on any one of the four Corel threads. I'll stick with this one.
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Corel sees Q4 loss, flat 1998 revenues
OTTAWA, Sept 24 (Reuter) - Canada's Corel Corp said on Wednesday its fourth-quarter results would be ``materially less''
than analysts' estimates, with a net loss between US$15 million and US$20 million.
Ottawa-based Corel also said it expected flat revenues and ``break-even or slightly positive'' earnings in fiscal 1998, Chief
Financial Officer Charles Norris told a conference call with analysts.
The forecasts followed a dismal third-quarter report for the computer software company on Wednesday.
Corel reported a loss of US$0.47 a share in the third quarter ended August 31, versus a loss of US$0.05 a share in the year
earlier period.
The third-quarter results reflected Corel's decision earlier this month to recognize less revenue than the amount actually ordered
and shipped in order to lower product inventories in its distribution channel.
Looking ahead to the fourth quarter, Norris said the company anticipated revenues between US$70 million and US$75 million.
``Which given Corel's current cost structure, will result in a net loss...of US$15 million to US$20 million or US$0.22 to US$30
per share,'' Norris said.
Corel's revenues in 1998 are expected to be about the same as 1997, without including any revenue contribution from the new
Enterprise Java product scheduled to be introduced in fiscal 1998, Norris said.
``Corel expects that additional cost control measures to be implemented during (the fourth quarter of 1997) will result in
breakeven or slightly positive earnings for fiscal 1998,'' he said.
Corel has been focusing its efforts on the more lucrative corporate software market and moving away from a saturated
consumer market. That transition is expected to continue in the fourth quarter, said Corel Chief Executive Officer Michael
Cowpland.
``We have been refocusing the company on the core big opportunities in the corporate market and divesting ourselves
of...some of the Windows graphics products we had been developing,'' Cowpland told analysts.
Corel has already sold off its consumer line and expects to sell other graphics products this month, he said.
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And I just made up a joke.
Some time in the near future...?
Investor A: "When I invested in Corel, I lost 25%."
Investor B: "No one likes a braggart!" |
