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Technology Stocks : Corel Corp. -- Ignore unavailable to you. Want to Upgrade?

To: James P Shaw who wrote (5597)	9/24/1998 4:13:00 PM
From: Frank Ferrari	Read Replies (2) \| Respond to of 9798

To All: Here are the results. I think they are great! Revenue is 71 Million and they are profitable before the charge (loss of 7.8, but charge is 15.9). corel.com Corel Corporation Releases 1998 Third Quarter Results Significantly improved results for third consecutive quarter Ottawa, Canada-- September 24, 1998- Corel Corporation today reported fiscal 1998 third quarter results for the period ended August 31, 1998. Revenues for the third quarter of 1998 were $71.1 million, up 46% from $48.8 million from the same period in 1997, and up 13% from revenues of $63 million for the second quarter of fiscal 1998. Net loss for the third quarter of fiscal 1998 was $7.8 million, or $(0.13) per share, compared to a net loss of $8.3 million, or $(0.14) per share for the second quarter 1998. During the quarter, Corel recorded a non-recurring restructuring charge of $15.9 million, attributable to the previously announced consolidation of its Utah operations into its Ottawa operations. At August 31, 1998, the Company's current asset position stood at $90.2 million, including $19.9 million in cash and short-term investments representing an increase of $2.6 million from the previous quarter this year. All amounts are expressed in US currency. "We are pleased with the financial performance of the Company as we move into the fourth quarter. Our business plan is working - these results represent the third consecutive quarter of significant improvement since we implemented it. We increased sales, we remained focused on managing expenses and we maintained an optimal level of product in our distribution channels," said Michael O'Reilly, vice president finance and chief financial officer at Corel Corporation. In June, the company announced a consolidation plan, a major element of which was the transfer of research and development from Corel's Orem, Utah engineering center to engineering facilities in Ottawa. This consolidation will contribute to a significant reduction in R&D expenses, while future product releases remain on schedule. Several key development teams in Orem have been retained to ensure a smooth transfer of technology through early 1999 to the Ottawa location. "The results announced today show that the steps we have taken during the past three quarters are working. We anticipate to return the company to profitability by our fiscal year end," said Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. "We believe that our results will continue to improve and are consequently targeting sustainable profitability beginning in the fourth quarter of fiscal 1998." 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 Corel Corporation is an internationally recognized developer of award-winning graphics and business productivity applications. Development of market-leading products such as the CorelDRAWT line of graphics applications and the Corelr WordPerfectr Suite of business tools is continually evolving to meet the demands of the corporate, retail and academic markets. Committed to value, compatibility, choice and open standards, Corel develops products for the Windowsr, Macintoshr, UNIX, Linuxr and JavaT platforms. Corel's common stock trades on The NASDAQ Stock Market 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.