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COREL CORP. CONTINUES on its rocky road. Weeks ago, the company warned that its fourth-quarter results, to be announced Jan. 13, will not meet expectations.
The software maker's recent financial trouble got deeper when it released a preview of its fourth-quarter financial report on Dec. 18. Citing excess inventory in the channel, Corel said it will post a loss of $95 million and net sales of just $44 million for its fourth fiscal quarter ended Nov. 30. The expected loss amounts to $1.43 per share. Corel executives said the company experienced returns of $50 million from the channel.
The loss comes on top of a loss of $31.4 million on sales of $55.8 million in the preceding quarter. Despite the bad news, executives said the company expects to record an additional $7 million in cash for the fourth quarter, raising its total cash amount to almost $30 million.
Rob Enderle, senior analyst...