SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Corel Corp.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Big K who wrote (6640)5/18/1999 10:25:00 AM
From: Frank Ferrari  Read Replies (1) of 9798
 
The question will be how much revenue can they recognize this quarter and not be seen as stuffing the channel. 2000 and 9 will have been out approximately 1 month to the channel and 3 weeks to the public in this quarter.

They must have sent a significant amount of product out to the channel for the launch and it seems to be selling pretty well, but how much will have been purchased by the actual consumer?

How much did this revenue add to the quarter, ie. Did consumers hold off purchasing any Corel product for the first 2 months of the quarter (as was supposedly the case all of last quarter) in order to get the latest and greatest?

If we assume sales during the first 2 months of the quarter were a better than last quarter due to the OEM bundling agreements (and strong under 1000 dollar PC sales). Say at a quarterly rate of 45 million, we get 2/3 * 45 = 30 million for the first two months, tack on 35 million for the launch (25 million from 2000 and 10 million from 9) and we are only aroung 65 million for the quarter. Next quarter however, could be much higher.

65 million revenue, and 63.5 million expenses (28.5 percent cost of sales and a 2 million increase in marketing) gives us 1.5 million profit. I really do not know if they are continuing to lower expenses.

With 60162000 shares outstanding we are at .024cents per share earnings.

This is just a start, please let me know where my calculations and assumptions are in error, maybe we can put together an accurate model.

Cheers
Frank

PS. I like your estimates much better.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News