Check out this article in Barrons on Mar 27. Day or two old, but at the end it talks re earnings of 8 cents for the year
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Corel Expects To Top Microsoft Again This Summer >COSFF
Dow Jones News Service ~ March 27, 1997 ~ 3:46 pm EST
OTTAWA (Dow Jones)--Corel Corp. (COSFF) expects to regain the top spot in
the retail office suite software market this summer with the latest version of the
company's signature Corel WordPerfect Suite product, said chief executive Michael
Cowpland.
Corel supplanted industry leader Microsoft Corp. (MSFT) of Redmond, Wash. last
summer with its Corel WordPerfect Suite 7, holding the top spot for four months.
And it hopes to do it again this year, Cowpland told industry analysts and reporters
late Wednesday after releasing the company's first quarter results.
Cowpland noted Corel lost market share into the autumn of 1996 however, as
Microsoft increased sales of its suite product. The rivalry has been one of the most
publicized battles in the computer industry.
''We expect to reverse that again to gain the dominant share of the retail market,'' he
said. The company is set to ship its Corel WordPerfect Suite 8 in May. It also plans
to have its Office for Java ready for beta testing April 7, with shipping in June.
Corel earned $1 million, or 1 cent a fully diluted share, in the first quarter ended
Feb. 28, on $93.7 million of revenue. That compares with a loss of $6.6 million, or
12 cents a diluted share, in the first quarter of fiscal 1996.
Revenue in the first quarter of 1997 rose 157% over the same period last year,
reflecting the fact that Corel purchased WordPerfect from Novell Inc. (NOVL) in
March 1996, after the end of the first quarter.
Corel said it earned 47% of the $54.1 millon in business applications revenue
through WordPerfect Suite 7, and 24%, or $13 million, through a licensing
arrangement for its Java technology. The company will have its Office suite for Java
available on the company's Web site April 2.
The results were better than the 5 cent-a-share loss analysts were expecting for the
quarter, due, in part, to a drop in advertising costs associated with the WordPerfect
applications.
(MORE) DOW JONES NEWS 03-27-97
3:46 PM
Corel Outlook -2: Analysts See 2Q Net At 3c/Shr >COSFF
Corel Corp. (COSFF) said it spent almost 60% less on advertising in the first
quarter of fiscal 1997 than the fourth quarter of last year. That amounts to $19.9
million, or 21% of revenue, compared to C$31.7 million, or 25% of revenue in the
fourth quarter, and C$15.4 million or 42% of revenue in the first quarter of fiscal
1996.
''Now that we've managed to get the market image of WordPerfect Suite so strong,
we're in the maintanance mode of the marketing and therefore we think the
expenditure (in the first quarter) is the right kind of magnitude going forward,'' said
chief executive Michael Cowpland.
In addition to Corel's success in the retail market, Cowpland said corporate sales
were up 25% in the fourth quarter of last year over the third quarter. The corporate
sector was seen as an important market for Corel to break into.
''We're beginning to generate good coporate momentum as well as the retail
momentum,'' Cowpland said.
Corel also announced it was spinning off its hardware business, calling it Corel
Computer Corp. Heading up the enterprise will be Corel's vice-president of
software development Eid Eid. Cowpland will be chairman of the new company.
Cowpland said some of the company's existing partners in this hardware, video
conferencing and network computer side of the business may eventually take
between 10% and 30% of Corel Computer. That will be followed by an intial public
offering in about 12 months.
Corel's chief financial officer, Charles Norris, said analysts' mean estimate for
second-quarter profit is 3 cents a share on revenue of $111 million. For the year,
Corel is expected to turn an 8 cent-a-share profit on revenues of $432 million.
Norris wouldn't comment on the forecasts.
Corel, Kanata, Ont., is a software developer.
(END) DOW JONES NEWS 03-27-97
3:57 PM
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