Canadian software company Corel Corp. is cutting 9 percent of its staff, or 66 people, to reflect its expected revenue performance, it said Friday.
For the second quarter of 2003, Corel reported a net loss of US$5.6 million or US$0.06 per share, on revenue of US$32.2 million. That compares to a net loss of US$574,000 or US$0.01 per share on revenue of US$28.3 million in the first quarter of the year, and to a loss of US$6.3 million or $0.07 on revenue of US$30.8 million in the same quarter last year, Corel said in a statement.
Corel launched four new products during the quarter -- WordPerfect Office 11, Corel Designer 10, Corel Painter 8 and Corel Smart Graphics Studio -- and said that the launch of the office suite had caused a slight increase in revenue. However, revenue growth is a challenge for the company as it tries to move from older graphics products to new XML (Extensible Markup Language) content management products, it said.
By category, Corel said revenue from graphics solutions fell 5.6 percent year on year to US$14 million, while revenue from office productivity products rose 33 percent to $15 million. Office productivity revenue jumped 66.6 percent quarter on quarter, reflecting the launch of the Office suite, Corel said.
XML product revenue grew 46.6 percent compared to the year-ago quarter, to US$456,000, but dropped 60 percent from the previous quarter, when it hit US$1.1 million, the statement said.
The cuts to Corel's workforce will reduce payroll costs by about US$4.2 million per year, the company said.
Corel in Ottawa announced earlier this month that it had agreed to be acquired by Vector Capital Corp. of San Francisco for US$97.5 million.