Another loss-making quarter for Corel

Is there still life in this Microsoft alternative?

Canadian software maker Corel has reported a larger loss for its third quarter, as the company struggles to rebound after several years in the red. The company recorded a net loss of $59.1m, or 64 cents a share, for the quarter, which ended on 31 Aug. That compares with a profit of $500,000, or 2 cents a share, in the same period a year ago. Total revenue was $31.3m, compared with $34.2m a year ago. Excluding the write-off of goodwill charges, last quarter's loss totalled $8.2m, or 9 cents a share. On that basis, analysts polled by research firm First Call expected Corel to report a loss of 8 cents a share. Corel, once a major player in graphics programs and other types of software, has seen its fortunes erode in recent years, resulting in several rounds of layoffs and a change in CEO. The company announced several deals in recent months to capitalise on its WordPerfect office software, including an arrangement in which HP will bundle WordPerfect with all new consumer PCs, in place of more expensive Microsoft software. Corel said in its earnings release that revenue was up about $500,000, or 2 per cent, over the second quarter of the year, due mainly to increased sales of WordPerfect to government buyers and due to the release of a new version of CorelDraw graphics software. CEO Derek Burney blamed the higher-than-expected loss on increased advertising and marketing costs to support new products. Corel said it expects fourth quarter revenue to rise to a range of $34m to $38m. The company plans to reduce costs by $2m to $3.5m each quarter to return to profitability late next year.
"Today's economy is challenging for software sales but not insurmountable if you have the technology and know-how," Burney said in the statement. David Becker writes for CNET News.com.