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Technology Stocks : Corel Corp.

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To: Leo Mitkievicz who wrote (1625)8/26/1997 3:07:00 PM
From: Scott Volmar   of 9798
 
Leo, I see only two substantive variables in the projections. First, as you pointed out, is expenditures. I feel somewhat safe on holding expenses close to Q2 & Q1. Dr. Cowpland took a lot of flack last year from shareholders for excessive spending. I think he listened to investors and has done a very good job in holding G & A expenses at an even pace the past two quarters. The "variable part" that will be unknown until the announcement, is the amount of money spent on Corel Computer Corporation. If these costs were taken out of R & D, then expenses should stay about the same. If not, we may see a rise in expenses as Alomex is predicting.

Second, the actual revenue from each product category may be off by a few million, here or there. The real variable is Suite 8 sales for the quarter. It is this number I am most anxious about. It is this number that will help us guage Q4.

A while back Stephen Woo sent an e-mail IR to try to get a "read" on June's Suite 8 sales. Its unlikely he heard back on that subject, or at least, I missed his post, if he did.

I think that when the Java smoke clears, things will look very bright for the next few quarters.

Up, Up, and Away!

Scott
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