“Investors are impressed with Corel’s…continued push into the
Linux market through startup investments. A cursory glance gives
some the feeling that Corel is building a strong Linux
business.”
“But the truth is that the four Linux companies Corel has
invested in are long shots. Taken together, the investments offer
little hope of nudging Corel toward profitability.“
“Corel has been hurting financially for some time. It lost money
in all but three of its last ten quarters. Its fortunes appeared to
be turning when it posted profits in its past two quarters, but it
preannounced that it will lose about $9 million, or 14 cents per
share, on sales of $61 million in its fourth quarter ended November
30.”