Corel posts US$59 million loss

Ottawa-based Corel Corp. on Wednesday posted financial losses for its fiscal third quarter, but the company expects to see increased revenues for the fiscal fourth quarter and fiscal 2003.

The company reported a net loss of US$59.1 million or US$0.64 per share, after a US$50.5 million charge to write down goodwill this quarter. Without the charge Corel’s loss this quarter would be US$8.6 million or US$0.09 compared to US$6.3 million or US$0.07 per share in the second quarter of this year and a profit of US$500,000 or US$0.01 per share in the same quarter last year.

Revenues for the quarter were US$31.3 million compared to US$34.2 million in the same period last year.

Corel included write downs for the acquisition of SoftQuad Software Ltd., a company that deals in XML technology and Micrografx, a developer of process management software in this quarter’s loss.

“We remain focused on our strategy to capitalize on our expertise in graphics innovation and design and open standards such as XML to feed the driving forces of the technology arena toward wireless and Web-based services,” said Corel President and CEO, Derrick Burney, in a statement.

Corel expects fourth quarter revenues to increase and be in the range of US$34-$38 million. For fiscal 2003, the company expects revenues to increase slightly as it introduces over a dozen new products or upgrades.