Another article from todays Toronto Globe & Mail; sounds as if 2 to 3 more quarters before the analysts are going to be happy if they ever are.
Corel writedown prompts loss Corel writedown prompts loss 21:03 Monday, June 23, 1997
THE GLOBE AND MAIL News Wire
BY PATRICK BRETHOUR
Technology Reporter
Corel Corp. made a slim operating profit of $4.1-million (U.S.) in its second quarter, but a $113.7-million writedown of capitalized software assets pushed it into the red, the Ottawa-based software maker said Monday.
In a statement issued after the close of trading, Corel reported a profit of 6 cents a share before the writedown on revenue of $100.4-million.
But after the charge, about $100-million of which is related to Corel's acquisition of the WordPerfect software line, the company lost $105.7-million, or $1.76 a basic share, in the quarter ended May 31. Unlike diluted shares, basic shares do not take into account options or other convertible securities.
A year ago, Corel made $506,000, or 1 cent a share, on revenue of $87.5-million.
Corel management did not make itself available for interviews, saying it plans to hold a conference call Tuesday morning to discuss its results.
In a statement, Michael Cowpland, Corel's chairman, president and chief executive officer, said he was pleased with the second-quarter results. He noted that cash reserves had risen to $20.6-million, the third consecutive quarter that it has increased.
But David Wright, director of research at Marleau Lemire Securities Inc. in Toronto, said Corel's cash level, although headed in the right direction, is still low for a company its size.
Even with the improvement in its cash position, Corel's financial resources still pale beside those of its giant rival, Microsoft Corp., which counts its cash on hand by the billions.
Mr. Wright said Corel's relatively high level of accounts receivable -- $132.8-million, up marginally from $131.6-million last quarter -- could also prove to be problematic. He said the company often ships large amounts of software at the end of a quarter, raising the possibility that resellers could return software, rather than forward the expected cash, if sales don't pan out as expected.
c THE GLOBE AND MAIL News Wire - 1997 |
