“Corel Corp. isn’t out of the woods yet. By sacking one-fifth of
its workers yesterday, the graphics software specialist expects to
be able to save more than $20 million U.S. annually.”
“But that amount likely won’t be enough to avoid continuing
losses over the next two quarters. Indeed, Corel may be as much as
$20 million U.S. short — and this figure doesn’t include the
millions of dollars the firm must now set aside to pay for the
severance costs unveiled yesterday.”
“To bridge the gap, Corel either must generate quarterly
sales significantly higher than $44 million U.S. — something the
firm has already warned investors not to expect — or sell off
assets considered peripheral to the main business. This could
include the sale of its equity stake in affiliated companies such
as Ottawa-based Rebel.com or Graphon Corp. of Campbell,
California.”