Corel Announces Results for Fourth Quarter and Fiscal 2000.Business Editors OTTAWA--(BUSINESS WIRE)--Feb. 2, 2001 Corel Corporation (company) Corel Corporation - A software publisher best known for the CorelDraw application. Founded in June 1985 by Dr. Michael Cowpland, Corel Corporation was originally a systems integration company. (Nasdaq:CORL CORL Corel Corporation (stock symbol) CORL Coalition of Reef Lovers CORL capital outlay revenue limit CORL change-orientated reflective listening (psychotherapy) CORL Central Ontario Ringette League )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :COR cor (kor) [L.] heart. acute cor pulmonale acute overload of the right ventricle due to pulmonary hypertension, usually due to acute pulmonary embolism. .) today announced results for its fourth quarter and fiscal year ended November November: see month. 30, 2000. Revenues for the fourth quarter of fiscal year 2000 were $40.4 million, producing a net loss of $8.6 million or $(0.12) per share fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. . Corel (Corel Corporation, Ottawa, Ontario, www.corel.com) A leading Canadian software company, founded in 1985 by Dr. Michael Cowpland. For many years, it has been widely known for its award-winning CorelDRAW graphics programs for Windows, Mac and Unix. reported revenues of $36.4 million for the third quarter of fiscal year 2000, producing a net loss of $10.7 million or $(0.15) per share fully diluted. Revenues for fiscal 2000 totalled $157.5 million, producing a net loss of $55.3 million or $(0.80) per share fully diluted. Cash and cash equivalents at the end of fiscal 2000 stood at $128.6 million. For fiscal 1999, Corel reported revenues of $243.1 million, with a net profit of $16.7 million or $0.26 per share fully diluted. All figures are reported in US currency. "Our Q4 and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results demonstrate that our financially-disciplined approach is paying off," said John Blaine Blaine, city (1990 pop. 38,975), Anoka co., SE Minn., a suburb N of Minneapolis; settled 1862, inc. 1964. Diverse manufactures include medical equipment, gun parts, and optical components. The area was organized as a township in 1877 and was named in honor of James G. , chief financial officer at Corel Corporation. "We've we've Contraction of we have. we've have strengthened our balance sheet, eliminated all of our long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and achieved the goals set out in our cost-restructuring plan by reducing our spending by $10 million per quarter. Our revenues are up from the third quarter, mainly due to early sales of CorelDRAW A drawing program for Windows and the Mac from Corel. Introduced in 1989, CorelDRAW has been Corel's flagship program, which became very popular due to its speed and features. CorelDRAW has been offered in various suites with other Corel programs, including at one time, the Corel VENTURA (R) 10 Graphics Suite which hit store shelves just a few weeks before the end of the fiscal year." "There was no shortage of exciting developments at Corel during the fourth quarter of 2000 and I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in particularly proud of the work we've done to put this company back on a more solid financial footing," said Derek Burney Derek Hudson Burney (born 1939) is a Canadian businessman. He is also a former diplomat and political strategist for the Progressive Conservative government of Brian Mulroney. , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Corel Corporation. "Our results-oriented management team announced a strategic alliance with Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. to deliver the full power of the Web to our customers. We released CorelDRAW 10 Graphics Suite - the best upgrade ever to our world-renowned world-re·nowned adj. Widely known and acclaimed. graphics offering - and presented the worldwide preview of the next version of our flagship office suite, WordPerfect See WordPerfect Office. 1. (text, tool, product) WordPerfect - A word processor for a wide range of computers. The first version was sold in 1980 for Data General machines, and by the end of 1993 versions were on sale for MS-DOS, Microsoft Windows and Macintosh (R) Office 2002." "Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , the executive team conducted a comprehensive review of all aspects of the company's operations with the goal of repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. Corel for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth and profitability. Properly executed, our new growth strategy, unveiled last week, gives us the opportunity to achieve a compounded annual growth rate of at least 20 per cent over the next three years. Together with our improved financial standing, as our latest results illustrate, we believe we have laid the foundation for a strong future for the company. We have identified our priorities, narrowed our focus and are moving quickly to achieve our stated goal of profitability by Q3 of this year." Q4 2000 Highlights Product Development - CorelDRAW 10 Graphics Suite, Corel's most impressive graphics suite to date, hit store shelves. The suite was released simultaneously in multiple languages, including international English International English is the concept of the English language as a global means of communication in numerous dialects, and also the movement towards an international standard for the language. It is also referred to as Global English, World English, Common English, General English. , French and German. Among other benefits, the new release delivers faster performance, improved color management and enhanced compatibility. It also includes a powerful new Web animation application, Corel R.A.V.E.(TM) (Real Animated Vector Effects(TM)) - WordPerfect Office A suite of office applications for Windows from Corel that includes WordPerfect, Quattro Pro, Corel Presentations, Paradox and CorelCENTRAL (PIM, scheduling, etc.). It is the successor to Corel WordPerfect Suite, which was the successor to Corel Office. 2002, the upcoming release of Corel's flagship office suite, was unveiled at a worldwide preview held at COMDEX/Fall 2000 in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). . Over 70 per cent of the new features and enhancements developed for WordPerfect Office 2002 are the direct result of feedback from customers. It will be available for purchase in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. this spring. - Corel(R) e-Too(TM) was introduced to widespread acclaim at COMDEX/Fall 2000. It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have a cutting-edge Webmail (1) A common term for any Web-based e-mail. See Internet e-mail service. (2) An earlier name for Netscape's Web-based e-mail service, later named Netscape Mail (www.netscape.com). application that lets users compose com·pose v. com·posed, com·pos·ing, com·pos·es v.tr. 1. To make up the constituent parts of; constitute or form: e-mail messages enhanced by the richness of HTML HTML in full HyperText Markup Language Markup language derived from SGML that is used to prepare hypertext documents. Relatively easy for nonprogrammers to master, HTML is the language used for documents on the World Wide Web. . With rich-text formatting and graphical emoticons, quick doodles Doodles can mean the following:
v. 1. To introduce a substance, such as a drug or vaccine, into a body part. 2. To treat by means of injection. their own personality while adding emotion and emphasis to their e-mail messages. - CreativeAnywhere!(TM) 2.0, Corel's innovative new graphics service that offers a wide range of flexible, creative imaging tools over the Web, was also introduced at COMDEX/Fall 2000. With CreativeAnywhere! 2.0, online businesses, such as printing and photo services, can expand their offerings to customers by integrating imaging functionality into their Web sites. Corporate News - Corel and Microsoft formed a strategic alliance that will see the two companies expand their partnership to encompass projects related to Microsoft's new .NET initiative. As part of this expanded relationship, Microsoft purchased 24 million non-voting convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. of Corel at a total purchase price of $135 million. - Corel unveiled a new executive management team, led by Derek Burney, who was appointed to the position of president and CEO on a permanent basis. Mr. Burney was also appointed to the company's board of directors. Four new executive vice-presidents were appointed, each in charge of key portfolios within the company. The company also announced a new organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , providing a renewed focus on its product lines. Industry Recognition - Corel's internationally-recognized product lines continue to reap industry praise. Recent awards include: - ZDNet, Best Buy Award, for CorelDRAW 10 Graphics Suite - Macworld, four out of five mice rating, for CorelDRAW(TM) 8 Limited Edition for Mac(R) - Computer Paper, World-Class Canadian Software Award, for CorelDRAW 9 - Digital Output, Readers' Choice Top 50 Products & Technologies, for CorelDRAW 9 - Computer Shopper Computer Shopper could referr to the following publications:
Image Editing Changing or improving graphics images. It typically refers to bitmapped images rather than vector graphics drawings. Using an image editor, images can be modified by an artist using pen, brush, airbrush and other "painting" tools. Category, for Corel(R) KnockOut 1.5 Corel Corporation Corel Corporation provides its customers with the creative tools they need to unleash their imaginations. With its heritage of software innovation and a solid franchise of loyal customers worldwide, Corel has earned its reputation as an internationally recognized developer of award-winning graphics and business productivity applications on the Windows(R), Macintosh(R), Linux(R) and UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). (R) platforms. In 2001, Corel will continue to expand its support of the Web, delivering the Internet's versatility to customers through exciting Web-based applications See Web application. , content and services. Corel will also be developing applications for Microsoft's .NET platform as part of its commitment to provide customers with a full range of applications and services on multiple platforms Refers to two or more operating environments, which typically include the CPU family and operating system. For example, if versions of a program run on Windows and the Macintosh, the software is said to support multiple platforms. . With its headquarters in Ottawa, Canada, Corel continues to be one of Silicon Valley North's most exciting and influential software companies. Corel's common stock trades on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol CORL and on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol COR. For more information on Corel Corporation, please visit www.corel.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, involving the company's expectations about future financial results and other matters. These statements reflect management's current forecast of certain aspects of the company's future business. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results of operations to differ materially from historical results or current expectations. The words "plan", "expect", "believe", "intend", "anticipate", "forecast", "target", "estimate" and similar expressions identify forward-looking statements. Risk factors include shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to Corel's most recent reports filed with the Securities and Exchange Commission for a more complete discussion of the other risks and uncertainties. The factors underlying forecasts are dynamic and subject to change. As a result, forecasts speak only as of the date they are given and do not necessarily reflect the company's outlook at any other point in time. The company does not undertake to update or review these forward-looking statements. Corel, the Corel logo, WordPerfect, CorelDRAW, Corel R.A.V.E., Real Animated Vector Effects, e-Too and CreativeAnywhere! are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited in Canada, the United States and/or other countries. KnockOut is a trademark of Ultimatte Corporation used under license. All other products, fonts, company names and logos are trademarks or registered trademarks of their respective owners.
COREL CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of US$)
November 30, November 30,
2000 1999
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $128,566 $18,021
Accounts receivable
Trade 28,620 54,770
Other 773 3,954
Inventory 3,117 13,567
Income taxes recoverable - 5,135
Deferred income taxes 479 1,642
Prepaid expenses 1,000 2,042
------------ ------------
Total current assets 162,555 99,131
------------ ------------
Investments 11,996 2,873
Capital assets 42,471 49,697
------------ ------------
Total assets $217,022 $151,701
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $28,441 $50,284
Current portion of Novell
Obligations 10,000 10,594
Income taxes payable 5,630 -
Deferred revenue 10,907 18,472
------------ ------------
Total current liabilities 54,978 79,350
------------ ------------
Long-term portion of Novell
obligations - 7,985
Shareholders' equity
Share capital 375,181 222,155
Contributed surplus 1,099 1,099
Deficit (214,236) (158,888)
------------ ------------
Total shareholders' equity 162,044 64,366
------------ ------------
Total liabilities and shareholders'
equity $217,022 $151,701
------------ ------------
------------ ------------
COREL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
AND DEFICIT
(in thousands of US$, except per share data)
Three months ended Twelve months ended
November 30, November 30,
2000 1999 2000 1999
(unaudited)
------------------ ------------------
Sales $40,350 $60,932 $157,487 $243,051
Cost of sales 12,904 18,398 47,025 59,516
------------------ ------------------
Gross profit 27,446 42,534 110,462 183,535
------------------ ------------------
Expenses
Advertising 3,672 15,606 33,258 47,964
Selling, general and
administrative 21,099 22,295 85,662 82,229
Research and development 7,963 3,523 43,867 40,049
Depreciation and
amortization 2,094 2,046 8,006 6,443
Settlement proceeds - - - (6,342)
Loss (gain) on foreign
exchange 175 (511) 1,371 (246)
------------------ ------------------
35,003 42,959 172,164 170,097
------------------ ------------------
Income (loss) from
operations (7,557) (425) (61,702) 13,438
Gain on investment - - 14,585 -
Interest income (expense) (1,559) 93 (1,305) (190)
------------------ ------------------
Income (loss) before
income taxes (9,116) (332) (48,422) 13,248
Income tax expense
(benefit) (1,033) (5,221) 4,705 (3,946)
Share of loss in equity
investment 502 307 2,221 478
------------------ ------------------
Net income (loss) ($8,585) $4,582 ($55,348) $16,716
------------------ ------------------
------------------ ------------------
Earnings (loss) per share:
Basic ($0.12) $0.07 ($0.80) $0.27
Fully diluted ($0.12) $0.08 ($0.80) $0.26
Weighted average number
of Common Shares
outstanding (000s)
Basic 73,584 62,793 69,498 62,194
Fully diluted 73,584 69,062 69,498 64,616
COREL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of US$)
Twelve months ended
-------------------------------
November 30, November 30,
2000 1999
------------ ------------
Cash flows from operating activities:
Net income (loss) ($55,348) $16,716
Items which do not involve cash or
cash equivalents:
Depreciation and amortization 20,490 19,117
Bad debt expense 2,357 31
Write-down of assets 984 -
Deferred income taxes 1,163 853
Gain on sale of investments (14,585) (809)
Share of loss in equity
Investments 2,221 478
Changes in operating assets and
liabilities:
Accounts receivable 26,974 (12,157)
Inventory 10,450 3,150
Income taxes recoverable 5,135 (5,135)
Prepaid expenses 1,042 2,576
Accounts payable and accrued
liabilities (25,843) (7,925)
Income taxes payable 5,630 (7,549)
Deferred revenue (7,564) 539
------------ ------------
Net cash provided by (used in)
operating activities (26,894) 9,885
------------ ------------
Financing activities:
Issuance of common stock 22,346 12,767
Issuance of preferred stock 130,680 -
Reduction of Novell Obligations (13,628) (9,306)
------------ ------------
Net cash provided by financing
activities 139,398 3,461
------------ ------------
Investing activities:
Proceeds on sale investments 14,585 2,922
Purchase of investments (2,356) (1,561)
Purchase of capital assets (14,462) (19,198)
Proceeds on disposal of assets 274 119
------------ ------------
Net cash used in investing activities (1,959) (17,718)
------------ ------------
Increase (decrease) in cash and cash
equivalents 110,545 (4,372)
Cash and cash equivalents at
beginning of the year 18,021 22,393
------------ ------------
Cash and cash equivalents at end of
the year $128,566 $18,021
------------ ------------
------------ ------------
Supplemental non-cash information:
Adjustment to licences due to
settlement of Novell obligation $5,049 $ -
Balance in accrued liabilities for
capital assets purchased $4,000 $ -
Schedule A
Segmented information
The Company has only one global operating segment as detailed in
the consolidated financial statements included herein.
The company sells its products worldwide from three geographic
regions. A summary of sales by product, channel and region from
consolidated operations is as follows:
Three months ended Twelve months ended
November 30, November 30,
------------------ ------------------
2000 1999 2000 1999
------------------ ------------------
By product
Creative Products $ 20,684 $ 31,902 $ 75,919 $ 106,114
Business Applications 20,322 25,454 78,917 132,947
Other (656) 3,576 2,651 3,990
------------------ ------------------
Total sales $ 40,350 $ 60,932 $157,487 $ 243,051
------------------ ------------------
------------------ ------------------
By sales channel
Retail packaged
products $ 21,249 $ 36,640 $ 80,069 $ 140,200
OEM licenses 4,330 5,137 17,640 26,972
Corporate licenses 14,771 19,155 59,778 75,879
------------------ ------------------
Total sales $ 40,350 $ 60,932 $157,487 $ 243,051
------------------ ------------------
------------------ ------------------
By region
North America $ 28,690 $ 35,540 $ 96,536 $ 155,805
Europe 10,720 18,186 42,453 64,123
Other international 940 7,206 18,498 23,123
------------------ ------------------
Total sales $ 40,350 $ 60,932 $157,487 $ 243,051
------------------ ------------------
------------------ ------------------
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