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Technology Stocks : Corel Corp.

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To: Sans Souci who wrote (6053)1/20/1999 6:51:00 PM
From: 16bit  Read Replies (1) of 9798
 
I listened to most of the 1st conference call. The second conference on the sale of Corel Computer is still be going on. According to the conference call the Q4 1998 is a good model for 1999 except the R&D should increase 10% to 15% by Q4 1999. Based on that, break even is around 61 million per quarter. Q1/99 is expected to be the "most challenging" quarter in 1999. I expect Corel to reduce advertising in Q1/99 to try and ensure a profit, similar to what they did in Q3/98. Q2 & Q3 should have good revenue growth with the new product releases, but that will depend on what part of the quarter they are released. Advertising expense can be expected to increase significantly with the product release.

Bottom line Q1/99 revenues will be less than Q4/99, but overall, Corel expects 1999 revenue to be greater than 1998.

They don't expect any significant revenue from Linux in 1999.

Q1/99 .04
Q2/99 .07
Q3/99 .15
Q4/99 .11
1999 .37

Byron
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