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Technology Stocks : Corel Corp.

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To: A. Hayer who wrote (799)6/25/1997 2:04:00 PM
From: A. Hayer   of 9798
 
Cowpland says sales are running 30% ahead of what they were when WordPerfect 7 was launched. He also plans to launch an upgrade for 16-bit system users, something Microsoft isn't doing because it wants users to move from the Windows 3.X operating system to Windows 95 or NT, both 32-bit architectures.

"Over 50% of our installed base still have 16-bit systems," says Cowpland. It's an interesting gamble for Cowpland and one he hopes will substantially boost corporate sales, an area where Corel lags behind Microsoft.

Many corporations still use Windows 3.X. If Cowpland can give them a valid updated suite, he's hoping they won't upgrade their whole systems. Because the next battle is where all the rewards exist. It's the battle of the network -- Microsoft and Intel vs. Java, Corel, Sun Microsystems and more.

Yesterday, NCExpo opened in New York, pushing what many are promoting as the key to breaking Microsoft's domination, by using the power of the Internet instead of NT, Java instead of Windows and cheap NCs or Network Computers instead of pricier desktops.

Microsoft has moved quickly. It promotes Microsoft as a whole, not just a variety of parts. Applications, Internet, network, remote access, palmtops, even cable and Web TV all blur into a single word -- Microsoft. It and other players have announced the NetPC, a scaled-down computer, similar to an NC, but one that is centrally controlled, uses Windows as the operating system and functions on a Network.

Corel will roll out its NC and the commercial Office for Java in October, once the latest Java Virtual Machine, Version 1.13 is released. "Cowpland also sees the NC as the ticket to send CorelVIDEO sales soaring.

"I admit that the sales have been disappointing," Cowpland says of the video system, which is part of Corel Computer Corp. a wholly-owned subsidiary spun off and officially running this week. On $104 million US in sales for the quarter, video was about $600,000.

But Cowpland says people have been waiting to see if there is a single box -- computer and networked video that will fill their needs instead of buying multiple systems.

"That's what we intend to deliver," he said. And there is a lot of interest, says Cowpland, throwing out names like Time and America Online who are checking out the $700 US boxes.

With 60% of homes still without a computer, Cowpland sees that as a huge opportunity.

canoe.ca

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