Canadian software company Corel is cutting 66 staff to
reflect its expected revenue performance.
For the second quarter of 2003, Corel reported a net loss of
$5.6m (£3.4m) on revenue of $32.2m. That compares with a net loss
of $574,000 on revenue of $28.3m in the first quarter of the year,
Corel said.
Corel launched four products during the quarter - WordPerfect
Office 11, Corel Designer 10, Corel Painter 8 and Corel Smart
Graphics Studio - and said the launch of the office suite had
caused a slight increase in revenue.
However, Corel admittted revenue growth is a challenge as it
tries to move from older graphics products to XML content
management products.
Corel said revenue from graphics solutions fell 5.6% to $14m
(£8.5m), while revenue from office productivity products rose 33%
to $15m. Office productivity revenue jumped 66.6%, reflecting the
launch of the Office suite.
XML product revenue grew 46.6% compared with the same quater a
year ago to $456,000 (£276,000), but dropped 60% from the previous
quarter, when it hit $1.1m (£667,000).
The cuts to Corel's workforce will reduce payroll costs by about
$4.2m (2.5m) per year, the company said.
Corel announced earlier this month that it had agreed to be
acquired by Vector Capital for $97.5m (£59m).
Gillian Law writes for IDG News Service