Corel shows loss, trims staff
The struggling software maker plans to cut 9 percent of its already thinned work force as it tries to edge back to profitability.
Corel CEO Derek Burney said in a statement that the reduction will trim $4.2 million a year from the company's payroll and will help it edge toward profitability. "In keeping with our commitment to profitability in 2003, and with our second-quarter revenue coming in lower than anticipated, we have made these work force adjustments as part of our ongoing efforts to keep costs in line with expected revenue," he said.
Ottawa-based Corel reported a net loss of $5.6 million, or 6 cents a share, for its second quarter, which ended May 31. Revenue was $32.2 million. That compares with a loss of $574,000, or a penny per share, and revenue of $28.3 million, in the same period a year ago.
Corel has struggled with red ink for years, amid tepid sales for the company's WordPerfect software and other products. The company has gone through several rounds of layoffs and has jettisoned unprofitable products including a line of software based on the open-source operating system.
Corel's current strategy revolves around producing easy-to-use tools for creating content based on XML (Extensible Markup Language), the rapidly spreading standard for delivering Web services and complex business functions.
Corel directors recently agreed to a takeover bid by venture capital firm Vector Capital, but the proposal is meeting resistance from some shareholders.