Corel Corporation reports 1997 first quarter results.OTTAWA--(BUSINESS WIRE)--March 26, 1997--Corel Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :COS./NASDAQ:COSFF.) Wednesday announced financial results for its first quarter ended Feb. 28, 1997. 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 first quarter were $93.7 million, a 157 percent increase over 1996's first quarter of $36.4 million. The company reported a net income of $1.0 million, compared to a net loss of $6.6 million for the first quarter in 1996. This translates into earnings per share of $0.01 in the first quarter of 1997, compared to a loss of $0.12 per share in the first quarter of 1996. As at Feb. 28, 1997, Corel had $199.3 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 $12.0 million in cash and short-term investments. All figures are reported in US currency. "Our revenues for this quarter were well within the range of analysts estimates and we are pleased with the results," 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 Corp. "Momentum is building for the May release of Corel(r) WordPerfect(r) Suite 8 and the summer release of Corel Office A suite of applications for Windows from Corel that was superseded by Corel WordPerfect Suite. See WordPerfect Office. (r) for Java(tm)." First Quarter Developments CorelVIDEO(tm) Spin-Off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. Corel announced this quarter that it is moving forward with business plans for a new spin-off company. The new company, Corel Computer Corp., will be comprised of Corel's Video and Network Computing Storing and/or running applications in servers in a network. See cloud computing and network computer. groups and will focus on offering a complete hardware and software solution to the corporate environment. It will initially be a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Corel Corp. Corel has no plans of abandoning any of its new technology. Corel Computer Corp. will offer corporate video conferencing See videoconferencing. (communications) video conferencing - A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. as well as other communications and network computing solutions. First initiatives are integrating all applications, along with the network environment, enabling companies to run compatible devices and software and to standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. all components in order to become an entire "solution provider". Technology will be licensed from companies as necessary to complete customer's needs. Corel is confident the effort will be well received by existing and future investors and will provide a dynamic future for both teams going forward. The move will also allow Corel to focus more on its original core technologies including CorelDRAW(tm), Corel(r) WordPerfect(r) and Internet products. Corel(r) WordPerfect(r) Suite 8 Corel(r) WordPerfect(r) Suite 8 is currently in Beta and is scheduled to be released in Corel's second quarter. The new suite is packed with performance and productivity tools to help users work more efficiently. It offers a new precision-tuned, intuitive interface featuring a context-sensitive Property Bar, updated toolbars and streamlined dialog boxes A movable window that is displayed on screen in response to the user selecting a menu option. It provides the current status and available options for a particular feature in the program. . CorelCENTRAL(tm), a new Personal Information Manager, combines powerful organizational and communication tools that are integrated with the state-of-the-art Netscape(tm) Communicator (Corel WordPerfect Suite See WordPerfect Office. 8 Professional version only). Corel has also added easy-to-use tools for creating, converting, publishing and maintaining Web pages and Web Sites. Corel WordPerfect Suite 8 beta tester Richard Wilkinson Richard Wilkinson may refer to:
tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: by the new versions of WordPerfect, Presentations and Quattro Pro A Windows spreadsheet from Corel that provides advanced graphics and presentation capabilities, including goal seeking, 3D graphing and the ability to create multi-layered slide shows. It is optionally keystroke compatible with Lotus 1-2-3. " and feels "the new interface looks great". He also found the formula bar implementation and the Join Cell feature in Quattro Pro 8 an added benefit. Corel Corp. Incorporated in 1985, Corel Corp. is recognized internationally as an award-winning developer and marketer of productivity applications, graphics and Internet software. Corel's product line includes CorelDRAW(tm), the Corel(r) WordPerfect(r) Suite, Corel(r) Office Professional, CorelVIDEO(tm), CorelCAD(tm) and over 50 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 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 National Market System (symbol - COSFF). For more information visit Corel's home page on the Internet at http://www.corel.com . Corel, WordPerfect, CorelVIDEO, CorelDRAW, CorelCENTRAL, Presentations, Quattro and CorelCAD are trademarks or registered trademarks of Corel Corp. or Corel Corp. Limited. Netscape is a trademark of Netscape Communications Corp. 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 except per share data, unaudited)
Quarter ended
--------------------------------------------------------------
February 28, 1997 February 29, 1996
--------------------------------------------------------------
Sales $ 93,718 $ 36,423
Cost of sales 24,745 9,446
--------------------------------------------------------------
Gross Profit 68,973 26,977
Expenses:
Advertising 19,873 15,397
Selling, general
and administrative 19,652 10,539
Research and development 18,823 8,219
Depreciation and amortization 6,894 3,671
Loss on foreign exchange 183 301
--------------------------------------------------------------
65,425 38,127
--------------------------------------------------------------
Income (loss) from operations 3,548 (11,150)
Interest expense (income) 501 (1,000)
--------------------------------------------------------------
Income (loss) before income taxes 3,047 (10,150)
Income taxes 2,023 (3,551)
--------------------------------------------------------------
Net income (loss) $ 1,024 $ (6,599)
--------------------------------------------------------------
Earnings per share:
Net income (loss) per common share
Basic $ 0.02 $ (0.13)
Fully diluted $ 0.01 $ (0.12)
Average number of common shares outstanding (000s)
Basic 60,068 49,605
Fully diluted 72,400 56,864
CONSOLIDATED BALANCE SHEETS
(US dollars, 000s omitted, unaudited)
--------------------------------------------------------------
February 28, 1997 November 30, 1996
--------------------------------------------------------------
ASSETS
Current assets:
Cash and short-term
investments $ 12,016 $ 6,924
Accounts receivable - Trade 129,955 135,338
- Other 1,669 1,341
Inventory 31,874 30,390
Income taxes recoverable 607 12
Deferred income taxes 4,190 2,940
Prepaid expenses 17,550 18,388
--------------------------------------------------------------
197,861 195,333
Deferred income taxes 1,444 870
Capital assets 198,609 202,275
--------------------------------------------------------------
$ 397,914 $ 398,478
--------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,775 $ 17,592
Accrued liabilities 38,912 34,801
Current portion of
long-term debt 15,888 15,500
Deferred revenue 8,426 6,495
76,001 74,388
Long-term debt 30,388 33,830
Share capital 203,194 202,953
Contributed surplus 352 352
Retained earnings 87,979 86,955
291,525 290,260
$ 397,914 $ 398,478
CONTACT: Corel Corp. Cindy Scott, 613/728-0826, Ext. 1326 E-mail: cindys@corel.com http://www.corel.com or Corel Corp. Carrie Bendzsa, 613/728-0826, Ext. 1524 E-mail: carriebe@corel.com http://www.corel.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion