“Shares of embattled Corel sank today as investors pondered the
Canadian software developer’s weakening prospects and questioned
its odds for survival. Ottawa-based Corel, best known for its
CorelDRAW and WordPerfect software, posted a deep second-quarter
loss yesterday that reflected dwindling cash reserves, shrinking
demand for established products, and little indication that new
Linux operating-system products will soon save the day, analysts
said.”
“Survival is a question unless some changes are
made…Certainly they can’t have a lot more quarters like the one
they just had,” said Jean W. Orr of BlueStone Capital
Partners, one of the few analysts covering the company. “They
have to change their path and until they do that–and until they do
it in a significant way–things are just going to get
worse.”
“Analysts said that to improve its financial health, Corel must
sharply rein in its costs while it waits for revenues from product
updates and more demand for its Linux products. A tough recovery
plan is of critical importance, they said, because Corel’s
acquisition of Inprise/Borland derailed last month, taking nearly
$240 million in cash reserves from its grasp.”