Chainsaw Leo:
Re: "Turnaround Job"... "Sell off any technology that is currently not profitable"
exchange2000.com
Bingo, One up: "Analysts praised its decision to shed more of its marginal products and focus attention on its core word processing, graphics and business software. "
canoe.ca
Corel sheds more of its product lines
By JILL VARDY
Technology Reporter The Financial Post
OTTAWA - Corel Corp. has shed another batch of its products in exchange for US$1 million in cash and a stake in a California-based software company. Corel is selling its line of computer-aided design and some consumer software to International
Microcomputer Software Inc., a computer-aided design and graphics manufacturer. The transaction, which closes Sept. 30, brings Corel US$1 million, US$5 million worth of IMSI shares, and a 3% royalty on future sales of IMSI products that use Corel software. IMSI acquires the rights to Corel's CAD products, Corel-FLOW, and several home
products such as Corel Family Tree Suite and Corel Personal
Architect. The cash comes at an opportune time for Corel, which warned analysts Wednesday it will lose US$15 million to US$20 million in its fourth quarter ending Nov. 30, after reporting a net loss of
US$31.4 million (US47› a share) in its third quarter.
The company's shares (COS/TSE) closed yesterday down $1.35 at $5.45 as investors reacted to the poor earnings report.
Analysts praised its decision to shed more of its marginal products and focus attention on its core word processing, graphics and business software. In April, it sold its CD Home line of products to I. Hoffmann & Associates Inc. of Toronto for
US$1 million in cash, a 25% stake in Hoffman and a 5% royalty on Hoffmann's sales. The next month, Hoffman also bought the CD Medical product line from Corel for undisclosed terms. |
