Corel's Product Revenue Drops 27 Percent  

Posted by Mohammad Talha in ,

July 10 (Reuters) - Corel Corp, which makes graphics, digital media and office software, swung to a second-quarter net loss as product revenue sank 27 percent.

The Ottawa-based company said it lost $4.1 million, or 16 cents a share, in the period ended May 31. That compares with a net income of $930,000, or 4 cents per share, a year ago.

Revenue fell 25 percent to $50.4 million, dragged by product revenue that dropped to $44.3 million.

However, excluding items, Corel earned 22 cents per share.

In April, as it reported deeper losses and waning sales, Corel said it would cut 10 percent of its staff and institute unpaid days off under a cost-cutting plan.

The company said the measures would reduce expenses by about $2 million through the remainder of fiscal 2009.

Corel once fought a highly publicized, but ultimately doomed, battle with Microsoft Corp, trying to win the word processing market by pitting its WordPerfect software against Microsoft Word in 1997.

Shares of Corel closed at C$2.50 Thursday on the Toronto Stock Exchange. ($1=1.163 Canadian Dollar) (Reporting by Susan Taylor and Isheeta Sanghi; Editing by Himani Sarkar) (story Link)

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