TO ALL: OFFICIAL NEWS RELEASE
OTTAWA--(BUSINESS WIRE)--Sept. 10, 1997--Corel Corporation (TSE:COS.,
NASDAQ:COSFF.) Corel Corporation announced today that notwithstanding having
received and shipped orders for $96 million US, it would recognize revenue for reporting
purposes of $54 million US for its third quarter of 1997.
The revenue recognition is consistent with industry practice, generally accepted accounting
principles and current draft guidelines issued by the American Institute of Certified Public
Accountants and is based on historical run rates. As a result, the company will recognize a
loss for reporting purposes of approximately $32 million US. Cash levels, however, remain at
approximately $20 million US, which is the same position as at the end of the second quarter
of 1997.
Corel expects increased sales-out activity in the fourth quarter, traditionally an active time
period in the year with fall and Christmas sales, as a result of new product releases, aggressive
market promotion and a concentrated focus on significant strategic alliances.
Over the past nine months, Corel has purposefully realigned its development and sales efforts
to concentrate on its core capabilities in Graphics and Business Productivity Applications.
Corporate sales have grown nearly 35 percent in the last 12 months and Corel is currently
engaged in a number of pilot programs involving companies with 100,000+ seats. Within the
last year, Corel has secured over 2 million new licenses for Corel Business Applications within
corporate environments.
Dr. Michael Cowpland, Corel president and CEO stated, "Over the last three quarters we
have been repositioning the company from its retail focus to an expanded concentration on the
corporate marketplace. Products such as Corel WordPerfect Suite 8 are an immediate loyalty
reward for WordPerfect users. In the near future, our Java technology leadership, combined
with our business application expertise, will position Corel to deliver on the promise of Java.
In fact, in preliminary discussions with customers, we are finding strong corporate interest in
our enterprise Java strategy. Our Java-based client server version of the Corel WordPerfect
office suite will soon provide organizations with a "breakthrough" opportunity to greatly reduce
their IT total cost of ownership."
To continue this corporate sales momentum, Corel has recently appointed Don Sylvester,
former Director of Commercial Sales at Dell Computer Corporation, Canada, as its Senior
Vice-President of Sales. Mr. Sylvester brings 20 years of corporate sales experience to
Corel. Plans for the immediate future are to enhance the corporate sales and marketing effort
to support the "Corel: Corporate Compatible" strategy. Activities will include expanding the
sales force worldwide while leveraging partnerships with industry leaders. Corel will continue
to strengthen its commitment to the vertical markets it dominates including legal, government
and academic. Corel's mission in the corporate marketplace is to be positioned as the strong
alternative vendor who offers compatible solutions which reduce the IT total cost of
ownership.
Forward looking statements in this release are made under the Safe Harbor Reform Act of
1996. These statements are based on current expectations and actual results may differ
materially due to risks, uncertainties, and other factors. Additional information covering factors
that could cause results to differ materially from projected statements can be found in Corel's
10-K and 10-Q filings, as well as the annual report.
Further information on Corel's Java Enterprise solutions is posted on Corel's web site at
www.corel.com . Corel Corporation
Incorporated in 1985, Corel Corporation is recognized internationally as an award-winning
developer and marketer of productivity applications, graphics and Internet software. Corel's
product line includes CorelDRAW(TM), Corel(R) WordPerfect(R) Suite, Corel(R) Office
Professional, Corel(R) WebMaster Suite and CorelCAD(TM). Corel's products run on most
operating systems, including: Windows(R), Macintosh(R), UNIX, MS-DOS, and OpenVMS
and are consistently rated among the strongest in the industry. The company ships its products
in over 17 languages through a network of more than 160 distributors in 70 countries
worldwide. Corel is traded on the Toronto Stock Exchange (symbol - COS) and the
NASDAQ -- National Market System (symbol - COSFF). For more information visit Corel's
home page on the Internet at corel.com .
Note to Editors: Corel, WordPerfect, Paradox, Presentations, CorelDRAW and CorelCAD
are registered trademarks or trademarks of Corel Corporation or Corel Corporation
Limited. Java is a trademark of Sun Microsystems Inc., in the United States and other
countries. Windows is a trademark or registered trademark of Microsoft Corporation. All
other product and company names are trademarks or registered trademarks of their
respective companies.
CONTACT: Corel Corporation
Cindy Scott, 613/728-0826 x1326
cindys@corel.com
or
Corel Corporation
Carrie Bendzsa, 613/728-0826 x1524
carriebe@corel.com
or
Corel Corporation
John Hladkowicz, 613/728-0826 x1194
johnh@corel.com
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