BOSTON (06/15/2000) - Struggling Ottawa-based software maker Corel Corp.
Thursday warned that its second-quarter financial results will be even worse than it had been predicting. Corel said it now expects to report a loss of up to US$24 million for its second fiscal quarter ended May 31, on revenue of about $38 million.
Back in March, the company said the second-quarter results likely would mirror its first-quarter showing, when it reported an $18.7 million loss and revenue of $44.1 million in sales. But trouble has stalked Corel for the past several months, resulting in layoffs of 320 workers, a threatened cash shortage and the cancelation of a proposed acquisition of Scotts Valley, California-based Inprise/Borland Corp.
Corel, which reported $9.7 million in profits on $70.5 million revenue for last year's second quarter, is due to release the final results for the just-finished quarter next Tuesday. In today's warning announcement, the company said only that it "is making progress towards its goal of realigning its cost structure" through the workforce cuts and other restructuring actions.