Corel cuts staff to reduce costs


Corel cuts staff to reduce costs

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

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