Could be bad news:
Corel Corporation COS
Shares issued 10,650,127 Jan 15 close $7.45
Mon 18 Jan 99 In the News
The Globe and Mail reports in its Saturday, Jan. 16, 1999 edition that Corel is freezing new-product development for at least two years, reversing a key strategy that pinned its growth prospects on emerging software technologies. The Globe's Simon Tuck writes that Corel chief Michael Cowpland says the company doesn't need to go into any new areas. Instead, he says, Corel will focus on finding new ways to sell existing products, notably its CorelDraw graphics software and its WorldPerfect office suite.
Corel plans to sell more of its existing repertoire through upgrades and new sales channels, especially the Internet. The move comes after Corel cut its spending on research and development by 24 per cent or $5.4-million in the third quarter ended Aug. 31, 1998, compared with a year earlier. Corel reports its fourth-quarter results on Wednesday, and is expected to post its first bottom-line profit in eight quarters. Unnamed analysts say Corel's move doesn't offer much growth potential.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
