Corel Corporation reports 1996 fourth quarter and year-end results.OTTAWA--(BUSINESS WIRE)--Jan. 15, 1997--COREL CORPORATION (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)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :COS) 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 financial results for its fourth quarter and fiscal year which ended November 30, 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter were $125.4 million, a 102 percent increase over 1995's fourth quarter. The company reported a net income of $6.5 million, compared to a net loss of $1 million for the fourth quarter in 1995. This translates into earnings per share of $0.09 in the fourth quarter of 1996, compared to a loss of $0.02 per share in the fourth quarter of 1995. For the 1996 fiscal year, the company recorded net sales of $334.2 million, a 70 percent increase over 1995's net sales of $196.4 million. It has posted a net loss for the year of $2.8 million which translates to a per share loss of $0.04, compared to 1995's net income of $14.4 million and earnings per share of $0.26. "Although the earnings per share are down for the year as a whole, the strong fourth quarter sales - an incredible gain from the same quarter in 1995 - point to a banner year in 1997," said Dr. 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. "Besides looking forward to continued success with our world-leading graphics line, in particular CorelDRAW(TM) 7, we will continue to focus on providing innovative and feature-rich business applications software, and maximizing the benefits of open standards Specifications for hardware and software that are developed by a standards organization or a consortium involved in supporting a standard. Available to the public for developing compliant products, open standards imply "open systems;" that an existing component in a system can be replaced through our strategic alliance with Netscape." "In addition, our strong relationship with Sun and our position as the leading developer of business Java applications A Java program that is run stand alone. The Java Virtual Machine in the client or server is interpreting the instructions. Contrast with Java applet. See servlet. places us in a unique position to benefit from the huge momentum that Java continues to build," added Dr. Cowpland. Looking ahead to 1997, Corel will continue to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the ongoing success of its flagship graphics product, CorelDRAW, while increasing its market share with such products as Corel(R) WordPerfect(R) Suite 8, Corel(R) Office Professional 8, and Corel(R) WordPerfect 7 for Windows(R) 3.1. Corel will also maintain its position as an innovator in the Java arena by launching Corel(R) Office for Java(TM) and the CorelVIDEO(TM) Network Computer, which will be bundled with Corel Office A suite of applications for Windows from Corel that was superseded by Corel WordPerfect Suite. See WordPerfect Office. for Java, early in the year. As at November 30, 1996, Corel had $196.2 million in current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. which included $6.9 million in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. For more information, please contact Corel's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department, at (613) 728-8200 ext. 4500, fax (613) 761-9350. All figures are reported in US currency. 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 Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. , 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.corel.com. Corel and WordPerfect are registered trademarks and CorelDRAW, CorelVIDEO and CorelCAD are trademarks of Corel Corporation or Corel Corporation Limited. Netscape is a trademark of Netscape Communications Corporation (company) Netscape Communications Corporation - (Formlerly "Mosaic Communications Corporation", MCC) A company set up in April 1994 by Dr. James H. Clark and Marc Andreessen <marca@netcom. . Java and other Java-based names are trademarks of Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , Inc. and refer to Sun's Java technologies. All product and company names are trademarks or registered trademarks of their respective companies. -0-
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars, 000s omitted, unaudited)
Quarter ended Year ended
November 30 November 30
1996 1995 1996 1995
---------------------------------------------------------------
Sales $ 125,406 $ 62,083 $ 334,245 $ 196,379
Cost of Sales 36,860 16,238 101,094 47,352
---------------------------------------------------------------
Gross Profit 88,546 45,845 233,151 149,027
Expenses:
Advertising 31,690 17,972 92,682 55,099
Selling, general
and
administrative 20,941 14,775 71,019 40,292
Gain on sale
of CD Creator - - (10,426) -
Research and
development 20,742 9,481 65,927 27,232
Depreciation
and amortization 5,045 2,713 19,081 9,468
Loss (gain) on
foreign exchange (41) 399 (141) 136
---------------------------------------------------------------
78,377 45,340 238,142 132,227
---------------------------------------------------------------
Income (loss)
from operations 10,169 505 (4,991) 16,800
Interest expense
(income) 296 (1,118) (1,391) (5,023)
---------------------------------------------------------------
Income (loss)
before income taxes 9,873 1,623 (3,600) 21,823
Income taxes 3,329 2,579 (850) 7,399
---------------------------------------------------------------
Net income (loss) $ 6,544 $ (956) $ (2,750) $ 14,424
---------------------------------------------------------------
Earnings per Share:
Net income (loss)
per common share
- Basic $ 0.11 $ (0.02) $ (0.05) $ 0.30
- Fully Diluted $ 0.09 $ (0.02) $ (0.04) $ 0.26
Average number of
common shares
outstanding
- Basic 59,920 49,000 57,289 48,412
- Fully Diluted 70,649 56,780 66,681 55,174
CONSOLIDATED BALANCE SHEETS
(US dollars, 000s omitted, unaudited)
November 30, 1996 November 30, 1995
---------------------------------------------------------------
Assets
Current assets:
Cash and
short-term investments $ 6,924 $ 81,816
Accounts receivable
- Trade 135,338 58,797
- Other 1,341 3,322
Inventory 30,390 16,224
Income taxes recoverable 12 3,306
Deferred income tax assets 2,940 -
Prepaid expenses 18,388 8,881
---------------------------------------------------------
195,333 172,346
Deferred income taxes 870
Capital assets 202,275 49,000
---------------------------------------------------------
$ 398,478 $ 221,346
---------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 17,592 $ 12,896
Accrued liabilities 34,801 10,097
Current portion of
long term debt 15,500 -
Deferred revenue 6,495 -
---------------------------------------------------------
74,388 22,993
Deferred income taxes - 2,495
Long term debt 33,830 -
Share capital 202,953 105,801
Contributed surplus 352 352
Retained earnings 86,955 89,705
---------------------------------------------------------
290,260 195,858
$ 398,478 $ 221,346
---------------------------------------------------------
CONTACT: Corel Corp., Ottawa Corel's Investor Relations Department, 613/728-8200 ext. 4500 |
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