Corel sees loss, cuts workforce

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Corel Corp. has reported revenue of US$32.2 million and a net loss of $5.6 million for its second quarter of fiscal 2003 that ended May 31. This compares with revenue of $28.3 million and a net loss of $574,000 for the first quarter of fiscal 2003.

Corel's second quarter 2003 results also compares with revenue of $30.8 million and a net loss of $6.3 million for the same period last year. The company has reduced its global work force by 66 employees -- or approximately 9 percent -- in order to manage expenses relative to their anticipated revenue.

Corel's graphics solutions revenue for the second quarter of fiscal 2003 was $14.0 million, decreasing by 15.6 percent from $16.5 million in the previous year. (This is the area under which most all of the company's Mac compatible products fall.)

Revenue from office productivity solutions increased by 33 percent on a year-to-year basis, from $11.2 million in the second quarter of fiscal 2002 to $15.0 million in the second quarter of fiscal 2003. Revenue from Corel's process management solutions declined by 11.2 percent on a year-to-year comparison, from $2.5 million in the second quarter of fiscal 2002 to $2.2 million in the second quarter of fiscal 2003. And revenue from Corel's XML solutions increased by 46.6 percent, from $311,000 in the second quarter of fiscal 2002 to $456,000 in the second quarter of fiscal 2003.

Cash and cash equivalents, restricted cash and short-term investments at the end of the second quarter of fiscal 2003 stood at $75.5 million, compared with $73.0 million at the end of the first quarter of fiscal 2003.

Corel announced plans to be bought out by Vector Capital Corp. earlier this month. Pending regulatory and shareholder approval, the plan would cause Corel to fall back into private ownership and thus be de-listed from stock exchanges. A spokesman for Vector Capital explained that the maneuver would let Corel operate without "the costs and distractions of the public market."

In late May Corel confirmed that it would axe Mac development of Bryce, a 3D landscape generation tool, though the company reiterated its commitment to other Mac-compatible graphics products.

This story, "Corel sees loss, cuts workforce" was originally published by PCWorld.

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