happy:
The online version of ROB is incomplete. I will manually transcribe the letter for all:
"The Globe and Mail, Monday, March 31, 1997. page B2
Letters to Report on Business
COREL
Having just recovered from your account of Michael Cowpland's never-say-die performance on the squash court, I feel the need to lob in a few questions of my own (Cowpland bets the company--March 8).
The article prompted me to visit Corel Corp's Internet home page for the company's year-end financial statement. As Mr. Cowpland reportedly has "a wariness of financial over-extension," it is surprising that while sales rose by a commendable 70%, receivables shot up by 129% and represent almost five months' sales. In just one year, cash declined by 93% to $7-million from $82-million and capital assets increased by over 300% to $202-million.
One is prompted to wonder how much of Mr. Cowpland's "propensity to tinker with the strategic direction of the company" providing "a way for Corel to learn a cheap lesson and move on" contributed to this huge increase in capital assets and decline in cash reserves. [Note to Mr. Clark: a guy name Warren Buffett has done pretty well out of buying up undervalued assets --Geek.]
The company continues to talk about the U.S. retail office software market. However, according to your article, this market in December totalled only $25.3-million for the three major players. Presumably the big market is corporate--not retail--but I have not seen any penetration figure for Corel in that market.
One wonders what the $93-million advertising budget (more than three months' sales revenue) is focused on.
Corel's shares are now worth less than half of their 12-month high and profit has declined steadily for the past three years. Shareholders must sincerely hope that Mr. Cowpland is keeping his eye on the ball.
William Clark,
West Vancouver, BC"
Blah blah blah. It's good to know he's from "West" Vancouver (and all letter writers in future please continue to specify if you are from the rich part of town...so if from Toronto, sign "North Toronto", Montreal, "Westmount", Ottawa, "Rockcliffe", and Halifax "On a Really Nice Street"). By comparison the Globe reporters seem to be quite up to date!
If you wish to respond, you can send e-mail to letters@GlobeAndMail.ca
to the attention of the Report on Business editor. |
