Corel to post Q3 loss due to unsold inventory

Corel has revealed that it expects to report a third-quarter loss of US$32 million on revenues of $54 million. Although the company shipped $96 million worth of products, according to reports only $54 million in revenues came in due to a surplus of unsold inventory held by resellers. Despite the hit, the software company will maintain a $20 million cash level, the same as the previous quarter.

Corel has revealed that it expects to report a third-quarter loss of US$32 million on revenues of $54 million.

Although the company shipped $96 million worth of products, according to reports only $54 million in revenues came in due to a surplus of unsold inventory held by resellers.

Corel's financial results for the period ending on Aug. 29 will be reported on Sept. 24. Lower quarterly sales of WordPerfect and CorelDraw, two applications which make up 95% of the company's revenue, also had an impact on the quarterly loss, according to the company.

While First Call posted an estimate consensus of a 3 cent increase per share, Corel stock was down almost 13 percent yesterday closing at 5 5/8, after the pre-announced quarterly results.

Despite the hit, the software company will maintain a $20 million cash level, the same as the previous quarter.

To strengthen its corporate position, Corel is also planning to expand its worldwide sales force and in a first step appointed Don Sylvester, formerly Dell Computer Corp.'s director of commercial sales, as senior vice president of sales.

Corel, based in Ottawa, can be reached on the World Wide Web at http://www.corel.com/.

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