Corel has announced a net loss of $55.3 million for the fiscal year 2000 from revenues totalling $157.5 million.
This compares with a net profit of $16.7 million based on revenues of $243.1 million for the previous fiscal year. Revenues for the fourth quarter of fiscal year 2000 were $40.4 million – up from $36.4 million for the previous quarter – producing a net loss of $8.6 million.
The results follow on from Corel’s announcement last month of a new business strategy, which aims to see the beleagued company back in profitability later this year.
The multiphase strategy involves spinning off its desktop-oriented Linux OS business to concentrate on the desktop graphics market.
"Our year-end results demonstrate that our financially-disciplined approach is paying off," said John Blaine, chief financial officer at Corel. "We've strengthened our balance sheet, eliminated all of our long-term debt and achieved the goals set out in our cost-restructuring plan by reducing our spending by $10 million per quarter. Our revenues are up from the third quarter, mainly due to early sales of CorelDraw 10 Graphics Suite which hit store shelves just a few weeks before the end of the fiscal year."
"There was no shortage of exciting developments at Corel during the fourth quarter of 2000 and I'm particularly proud of the work we've done to put this company back on a more solid financial footing," said Derek Burney, president and CEO of Corel Corporation.
"Properly executed, our new growth strategy gives us the opportunity to achieve a compounded annual growth rate of at least 20 per cent over the next three years. Together with our improved financial standing, as our latest results illustrate, we believe we have laid the foundation for a strong future for the company. We have identified our
priorities, narrowed our focus and are moving quickly to achieve our stated goal of profitability by the third quarter of this year."
CorelDraw 10 Graphics Suite hit the shelves late last year and Corel plans to launch the suite for the Mac later this summer for both Mac OS 9 and Mac OS X. WordPerfect Office 2002 is due to ship in early summer and the company plans new versions of Corel KnockOut – its image masking software – Painter, Bryce and Kai's Power Tools over forthcoming months.
Corel has also joined forces with Microsoft to work on projects related to Microsoft's new .NET initiative. As part of this expanded relationship, Microsoft purchased 24 million non-voting convertible preferred shares of Corel at a total purchase price of $135 million.