Corel Q1 numbers hit by downturn

Software vendor Corel has posted a worse than expected loss for its first quarter and responded by talking up its cost cutting programme. The Canadian company suffered a net loss of $1.5m for the quarter ended 28 February, which was a deeper loss than the $30,000 loss a year ago.

Software vendor Corel has posted a worse than expected loss for its first quarter and responded by talking up its cost cutting programme.

The Canadian company suffered a net loss of $1.5m for the quarter ended 28 February, which was a deeper loss than the $30,000 loss a year ago.

The finger was firmly pointed at the global downturn as the cause of the woes with the interim CEO of Corel Kris Hagerman promising to emerge from the recession in a stronger position.

“We remain convinced that, through disciplined financial management and a commitment to delivering innovative products that drive real value for our customers, Corel will emerge from this difficult period financially sound and in an even stronger market position,” he said.

Part of that disciplined financial management involves cutting costs with a 10% salary reduction for senior executives and five unpaid days leave for all employees to be taken in Q2.

The aim of that belt tightening the vendor expects to save $2m during the rest of its 2009 fiscal year.

"While these decisions are never easy, our goal is to maintain a strong financial foundation to pursue our business strategy, while doing our best to minimize the impact on our employees,” added Hagerman.

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