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From: netnews@cdn-news.com
Date: 26 Mar 1998 08:20:01 -0000
To: netnews@cdn-news.com
Subject: Hot Off The Wire: COREL CORPORATION
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Canadian Corporate News --- Hot Off The Wire
News Release for "COREL CORPORATION"
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: COREL CORPORATION
TSE SYMBOL: COS
NASDAQ SYMBOL: COSFF
MARCH 26, 1998
Corel Corporation Reports 1998 First Quarter Results
OTTAWA, ONTARIO--Corel Corporation today announced financial
results for its first quarter of fiscal 1998 ended February 28,
1998. All amounts are reported in US currency.
The Company reported net sales of $45.5 million and a net loss of
$21.1 million or ($0.36) per share for the first quarter. At
February 28, 1998, the Company's current asset position stood at
$73.1 million, including $18.9 million in cash and short-term
investments. The Company's total liabilities were reduced by over
$9.0 million in the quarter.
"Although we are not pleased to report a loss for the quarter, we
believe we are on the right course. We continue to make
improvements in the efficiency of our business and to
competitively position ourselves in the market. I am satisfied we
are succeeding in building a stable foundation to support our
immediate and longer term business goals," said Michael O'Reilly,
Corel Corporation's vice president finance and chief financial
officer.
"We're coming out of a difficult transition year and clearly this
takes time. But in the first quarter of this year our management
team continued its sharp focus on core business, improved
distribution methods, strengthened North American and
international sales (forces) and saw innovative results from R&D
investments in graphics, business applications and Java," said Dr.
Michael Cowpland, president and chief executive officer of Corel
Corporation.
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 and other
reports filed with the Securities and Exchange Commission.
Corel Corporation
Incorporated in 1985, Corel Corporation is recognized
internationally as an award-winning developer and marketer of
productivity applications, graphics and Internet software for the
corporate and retail markets. Corel's products, which run on most
operating platforms, are consistently rated among the strongest in
the industry. The company's product line, including
CorelDRAW(TM), Corel(R) WordPerfect(R) Suite, Corel VENTURA(TM),
Corel Print House(TM) Magic and Corel(R) WebMaster Suite, ships in
over 17 languages through a network of more than 160 distributors
in 70 countries worldwide. Corel's common stock trades on The
Nasdaq Stock Market(SM) under the symbol COSFF and on the Toronto
Stock Exchange under the symbol COS. For more information visit
Corel's Web site at www.corel.com.
Corel, WordPerfect, CorelDRAW, Print House and Corel VENTURA are
trademarks or registered trademarks of Corel Corporation or Corel
Corporation Limited. All other product and company names are
trademarks or registered trademarks of their respective companies.
/T/
COREL CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER ENDED FEBRUARY 28, 1998
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars, 000s omitted except per share data, unaudited)
Quarter ended
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February 28, 1998 February 28, 1997
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Sales $ 45,460 $ 80,718
Cost of sales 10,442 24,023
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Gross profit 35,018 56,695
Expenses
Advertising 11,168 19,873
Selling, general and administrative 18,417 19,652
Research and development 21,165 18,823
Depreciation and amortization 4,391 6,894
Loss on foreign exchange 283 183
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55,424 65,425
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Loss from operations (20,406) (8,730)
Interest expense 133 501
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Loss before income taxes (20,539) (9,231)
Income taxes 550 2,023
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Net loss $ (21,089) $ (11,254)
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Earnings per share
Net loss per common share
Basic $ (0.36) $ (0.19)
Average number of common shares
outstanding (000s)
Basic 59,346 60,068
CONSOLIDATED BALANCE SHEETS
(US dollars, 000s omitted, unaudited)
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February 28, 1998 November 30, 1997
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ASSETS
Current assets
Cash and short-term investments $ 18,948 $ 30,629
Accounts receivable - Trade 33,955 50,951
- Other 2,961 2,310
Inventory 12,486 11,412
Deferred income taxes 2,695 2,353
Prepaid expenses 2,021 2,591
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73,066 100,246
Capital assets 57,397 63,497
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$ 130,463 $ 163,743
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 6,457 $ 13,840
Accrued liabilities 32,431 34,223
Current portion of long-term debt 13,500 13,500
Income taxes payable 5,077 4,203
Deferred revenue 11,992 14,124
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69,457 79,890
Long-term debt 23,273 24,044
Shareholders' equity
Share capital 202,879 204,235
Contributed surplus 1,099 730
Deficit (166,245) (145,156)
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37,733 59,809
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$ 130,463 $ 163,743
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CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(US dollars, 000s omitted, unaudited)
Quarter ended
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February 28, 1998 February 28, 1997
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Cash provided by (used for)
Operations
Net loss $ (21,089) $ (11,254)
Items which do not involve cash
Depreciation and amortization 7,548 20,756
Gain on disposal of assets (4) (1)
Deferred income taxes (342) (1,824)
Change in non-cash working capital 5,408 5,039
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(8,479) 12,716
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Financing
Issue of share capital - 241
Shares repurchased for cancellation (987) -
Repayment of long-term debt (771) (3,054)
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(1,758) (2,813)
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Investments
Purchase of capital assets (1,448) (4,845)
Proceeds on disposal of assets 4 34
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(1,444) (4,811)
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Net increase (decrease) in cash (11,681) 5,092
Cash at beginning of period 30,629 6,924
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Cash at end of period $ 18,948 $ 12,016
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/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Corel Corporation (Canada)
Nicole Sandford
(613) 728-0826 ext. 5046
E-Mail: nicoles@corel.ca
Website: www.corel.ca
or
Corel Corporation (US)
Sue Ann Wright
(613) 728-0826 ext. 5412
E-Mail: sueannw@corel.ca
INDUSTRY: CPR
SUBJECT: ERN
-0-
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