NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: COREL CORPORATION
TSE SYMBOL: COS
NASDAQ SYMBOL: COSFF
SEPTEMBER 24, 1997
Corel Corporation Reports 1997 Third Quarter Results
OTTAWA, ONTARIO--Corel Corporation today announced financial
results for its third quarter ended August 31, 1997. Net sales
were $55.8 million with the company reporting a net loss of $31.4
million. This translates into a loss per share of $0.47 in the
third quarter of 1997. These results reflect decisions announced
by Corel on September 9, 1997 to recognize less revenue than the
amount actually ordered and shipped, in order to lower product
inventories in the distribution channel.
As of August 31, 1997, Corel had $146.1 million in current assets
which included $22.5 million in cash and short-term investments.
All figures are reported in US currency.
"We have been through a period of extensive growth and
restructuring," said Dr. Michael Cowpland, president and chief
executive officer of Corel Corporation. "Looking forward to next
quarter, I am extremely confident in our new focus on corporate
sales, the industry's approval of our Enterprise Java strategy and
traditionally higher fall sales."
"With the third quarter behind us, the stage is set for restoring
profitability in 1998. We are restructuring the sales team to
reflect our increased commitment to the corporate market and we
are continuing to focus our development efforts on our core
business of graphics and productivit applications as well as our
future enterprise technologies."
Corel product initiatives for the fourth quarter include
CorelDRAW(TM) 8, its award-winning graphics and photo-editing
suite. CorelDRAW 8 will offer unparalleled usability,
customization options, new interactive tools and powerful Internet
publishing features. Five language versions of CorelDRAW 8 are
also expected to ship in the fourth quarter along with several
language version of Corel WordPerfect Suite 8 Professional.
Corel will also continue its strong line of consumer-oriented
products including Corel Print House(TM) Magic and Corel
GALLERY(TM) Magic.
This press release contains statements that are forward looking as
that term is defined by the US Private Securities Litigation
Reform Act of 1995. These statements are based on current
expectations that are subject to risks and uncertainties. Actual
results will differ due to factors such as customer demand,
product ship schedules, PC shipment growth, product mix,
competitive products and pricing, technological shifts and other
issues discussed in the company's Report on Form 10-K.
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. |
