Corel Restates Balance Sheet for Prior Years With No Impact on Reported Results of Operations or Cash Flows.Business Editors OTTAWA--(BUSINESS WIRE)--Sept. 7, 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 that it has filed with 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. Securities and Exchange Commission ("SEC") an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended November 30, 2000. The Company has restated its balance sheets for the years ended November 30, 1996 through November 30, 1999 to remove the contingent liability Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. related to the Novell royalty obligation described below and the corresponding acquired technology. The Company concluded, based on a review of its financial statements to be incorporated into a recently filed registration statement, that the accounting treatment and disclosure previously adopted was not appropriate. This restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. has no impact on the Company's previously reported results of operations or overall cash flows. The Novell royalty obligation arose pursuant to the March 1, 1996 acquisition of the WordPerfect(R) family of software programs and related technologies from Novell, Inc. The Company was obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. , at the date of acquisition, to pay royalties at a rate of 2 per cent of its net revenues to Novell to a maximum of a then present value of $30 million imputing a 10 per cent discount rate. The Company has recorded payments on this obligation as royalty expense included in cost of sales. On October 30, 2000, the Company agreed to pay Novell the total sum of $15 million representing the present value of the future royalty obligation referred to above. Three payments of $5 million each were made, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the agreement, on each of October 31, 2000, January 24, 2001 and April 23, 2001. This $15 million represents a prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of otherwise future payable royalties and the Company has deferred this amount accordingly. "This restatement has the effect of reducing previously reported assets and liabilities by an equal and offsetting amount in the years affected," said John Blaine, Chief Financial Officer of Corel. "This restatement has no impact on our previously reported results of operations or overall cash flows and also has no impact on our balance sheet for our most recently completed fiscal year."
As at November 30
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1999 1999 1998 1998
As As As As
Reported Restated Reported Restated
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Assets
Current Assets $99,131 $99,131 $95,383 $95,383
Investments 2,873 2,873
Future tax asset
Capital Assets 49,697 37,712 44,776 29,213
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Total assets $151,701 $139,716 $140,159 $124,596
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Liabilities and shareholder's equity Current liabilities:
Current portion of Novell
obligations $10,594 $6,594 $11,800 $7,000
Other current liabilities 68,756 68,756 83,691 83,691
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Total current liabilities 79,350 75,350 95,491 90,691
Novell obligations 7,985 16,085 5,322
Shareholders' equity
Share capital 222,155 222,155 203,088 203,088
Contributed surplus 1,099 1,099 1,099 1,099
Retained earnings (deficit) (158,888) (158,888) (175,604)(175,604)
Total shareholders' equity 64,366 64,366 28,583 28,583
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Total liabilities and
shareholders' equity $151,701 $139,716 $140,159 $124,596
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1997 1997 1996 1996
As As As As
Reported Restated Reported Restated
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Assets
Current Assets $100,246 $100,246 $195,333 $195,333
Investments
Future tax asset 870 870
Capital Assets 63,497 44,315 202,275 177,885
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Total assets $163,743 $144,561 $398,478 $374,088
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Liabilities and shareholder's equity Current liabilities:
Current portion of Novell
obligations $13,500 $7,000 $15,500 $6,500
Other current liabilities 66,390 66,390 58,888 58,888
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Total current liabilities 73,390 72,890 74,388 65,388
Novell obligations 24,044 11,362 33,830 18,440
Shareholders' equity
Share capital 204,235 204,235 202,953 202,953
Contributed surplus 730 730 352 352
Retained earnings (deficit) (145,156) (145,156) 86,955 86,955
Total shareholders' equity 59,809 59,809 290,260 290,260
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Total liabilities and
shareholders' equity $163,743 $144,561 $398,478 $374,088
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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. 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 over 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 . 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 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 and its logo are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited. All other product, font font or typeface or type family Assortment or set of type (alphanumeric characters used for printing), all of one coherent style. Before the advent of computers, fonts were expressed in cast metal that was used as a template for printing. , company names and logos are trademarks or registered trademarks of their respective owners. |
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