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Technology Stocks : Corel Corp.

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To: Scott Volmar who wrote (795)6/25/1997 11:36:00 AM
From: A. Hayer   of 9798
 
>Depending on the part of Q2 revenue made up of Suite 8 sales, this could be significant.

Scott,

It was revealed in the Conference Call that WP8 represented about 50% of the total productivity revenue. That would mean WP8 revenue in Q2 was about 36M.

This agrees with Dr. Cowpland's statements. He said that 300,000 units of WP8 were shipped and that Corel realizes $120 per unit in revenue. He also stated that WP8 costs about $5 per unit to manufacture.

This makes WP8 a very high margin product and if sales remain strong, Q3 is going to be a big quarter. Couple that with the release of the Legal Suite (already has large advance orders according to the Conference Call), the release of WP8-Professional, and WP7 for WIN 3.1.

It was also stated in the Call that the increase in R&D was due to translation costs. Each language costs 0.5M to translate.

CorelDraw 8 is on schedule to be released in the Oct-Nov time frame around about the same time Office for Java will be released.

In summary, Q3 and Q4 have enough major product releases to sustain significant revenue growth.

The next six months should be interesting.

ah

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PS - Did anyone listen to the Conference Call? Office for Java brought in revenue for the second straight quarter.
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