Wednesday March 17, 12:53 pm Eastern Time
Company Press Release
Corel Corporation Announces
Preliminary First Quarter Fiscal 1999
Results
OTTAWA, ONTARIO--Corel Corporation today announced that based on a preliminary analysis of its results for its first quarter ended February 28, 1999, the company expects to report revenues of $40.3
million which would likely result in a net loss of approximately $0.24 per share. That compares with sales of $45.4 million and a loss of $0.36 per share in the first quarter of fiscal 1998. All figures are
reported in US currency.
''In January, we stated that this quarter would be a significant revenue challenge,'' said Corel executive vice president and chief financial officer Michael O'Reilly. ''We knew we would be managing the very end of the life cycles of the current versions of our two flagship brands through Q1. This was the fifth consecutive quarter without a major release of either of these products as Corel extended its development cycle to ensure delivery of quality products to its customers. The first quarter is traditionally our lowest seasonal demand quarter. However, sales slowed much faster than anticipated
by both management and analysts,'' said O'Reilly.
''While we are clearly disappointed with Q1 revenue levels, I believe that the shortfall is restricted to the first quarter,'' said ''O'Reilly. ''I continue to expect fiscal 1999 to be a year of overall success for Corel.''
Both Corel's WordPerfect(r) Office 2000 and CorelDRAW(r) 9 Graphics Suite are slated to commence shipment in the current quarter and preliminary reviews in the marketplace indicate strong acceptance for both products. In addition, new versions of Corel's consumer applications will be shipping throughout the balance of the year.
Corel is also announcing that as of today, executive vice president of sales, Don Sylvester, is leaving the company. In the interim, all sales operations will report to Jim Orban, executive vice president of
marketing. Corel's executive leadership team remains committed to the full implementation of its business plans which were started last year. Those plans include the streamlining of operations and
deployment of resources which best serve its extensive customer base.
The preliminary revenue and earnings results in this news release are estimates and may change upon completion of the closing cycle for the quarter. Final results for the quarter are scheduled to be released on March 24, 1999. Company officials will not be commenting further until that time, when additional financial details will be provided.
This press release may contain certain statements that are forward looking as that term is defined by the US Private Securities Litigation Reform Act of 1995. These statements are based on current
expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as customer demand, product ship schedules, PC shipment growth, product mix, competitive products and pricing, technological shifts and other issues discussed in the company's Report on Form 10-K.
Corel Corporation
Incorporated in 1985, Corel Corporation is recognized internationally as an award-winning developer and marketer of productivity applications, graphics and Internet software for the corporate and retail markets. Corel's products, which run on most operating platforms, are consistently rated among the strongest in the industry. The company's product line, including CorelDRAW, Corel(r) WordPerfect(r) Suite, Corel VENTURA(tm) and Corel(r) WebMaster Suite, ships in over 17 languages through a network of more than 160 distributors in 70 countries worldwide. Corel is traded on the Toronto Stock Exchange (symbol: COS) and the NASDAQ -- National Market System (symbol: COSFF). For more information visit Corel's Web site at www.corel.com.
Corel, WordPerfect, CorelDRAW, Corel VENTURA and Corel WebMaster Suite are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited. Windows is a registered trademark of Microsoft Corporation. Macintosh is a registered trademark of Apple Computer Corp. All other product and company names are trademarks or registered trademarks of their respective companies. |
