Corel Corporation Announces Shipping Delays.OTTAWA--(BUSINESS WIRE)--Sept. 16, 1996--Corel Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : COS NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : COSFF) Michael Cowpland Michael Cowpland (born April 23, 1943) is a Canadian entrepreneur, businessman, and the founder and one-time president, chairman and CEO of Corel, a Canadian software company. Cowpland was born in Bexhill, Sussex, England and obtained a BSc. , president and chief executive officer of 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. today announced that as a result of a combination of factors the Company has experienced delays in shipping of Corel Office A suite of applications for Windows from Corel that was superseded by Corel WordPerfect Suite. See WordPerfect Office. Professional 7 ordered in the third quarter of fiscal 1996. The amount of product ordered but not shipped and therefore not included in the revenue for the quarter is approximately $15 million. Dr. Cowpland noted, "We focus on shipping the highest quality product with the greatest functionality possible. As a result, delays can be encountered in engineering as every effort is made to include the latest functionality and to eliminate all significant bugs prior to releasing a product to manufacturing. As well, the normal pattern of sales orders in the industry results in a substantial weighting of orders to the end of a quarter. Being a multi-product company, it is frequently difficult to project accurately which particular products will be ordered in any particular quarter where there are no new releases. All of these factors have an impact on the production scheduling. These difficulties are attributable to our continuing integration of the new products acquired by the Company and all our systems and programs are under ongoing review to address and correct any deficiencies in these areas." During the third quarter of fiscal 1996 the Company completed the sale of its CD Creator product line to Adaptec Inc. for proceeds of $11 million. The results for the third quarter of fiscal 1996 are expected to reflect a shortfall in revenues of approximately $15 million as well as the gain on the sale of CD Creator, which will be treated as a reduction in expenses in the quarter. The revenue shortfall, coupled with various price protection programs during the third quarter will likely result in a loss per share of approximately $0.05 - $0.07, including the gain on the sale of CD Creator of approximately $0.10. The Company is enthusiastic about the current pace of Corel WordPerfect sales. Recent PC Data figures indicate that unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of Corel WordPerfect Suite See WordPerfect Office. represented approximately 50% of the retail office suite market for the months of June and July. In addition, the Company plans to release CorelDRAW 7 in the fourth quarter. Reports from Beta sites lead the Company to believe that CorelDRAW 7 will be a robust and significant upgrade to the Company's flagship graphics software suite. The above is a forward looking statement as that term is defined by US 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. As such the projections stated above may be affected by the following factors which are more fully discussed in the company's annual 10K filing with the Securities and Exchange Commission:
1. Competitive factors including performance, product features,
ease of use, reliability, hardware compatibility, brand name
recognition, product reputation, pricing, levels of advertising,
quality of customer support, and product upgrades,
2. Competitors with larger technical staffs, more established
and larger sales and marketing organisations, and significantly
financial resources than Corel,
3. Limited effective copyright protection,
4. Dependence on key personnel, and
5. The timing, accrual, allocation and final tabulation of
expenses applicable to the quarter.
Corel Corporation Incorporated in 1985, Corel Corporation is recognized internationally as an award-winning developer and marketer of productivity applications, graphics and multimedia software. Corel's product line includes CorelDRAW(TM), the Corel(R) WordPerfect(R) Suite, Corel(R) Office Professional, CorelVIDEO(TM), CorelCAD(TM) and over 30 multimedia software titles. Corel's products run on most operating systems, including: Windows, Macintosh, 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). , MS-DOS MS-DOS in full Microsoft Disk Operating System Operating system for personal computers. MS-DOS was based on DOS, developed in 1980 by Seattle Computer Products. Microsoft Corp. bought the rights to DOS in 1981, and released MS-DOS with IBM's PC that year. , OpenVMS and OS/2 and are consistently rated among the strongest in the industry. The company ships its products in over 17 languages through a network of more than 160 distributors in 70 countries worldwide. Corel is traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (symbol- COS) and the NASDAQ--National Market System (symbol-COSFF). For more information visit Corel's home page on the Internet at http://www.corel.com. Corel and WordPerfect are registered trademarks and CorelDRAW is a trademark of Corel Corporation or Corel Corporation Limited. All products mentioned are trademarks or registered trademarks of their respective companies. CONTACT: Corel Corporation Corel Investor Relations Investor relations The process by which the corporation communicates with its investors. Department, 613/728-8200 x4500 INTERNET: http://www.corel.com |
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