“Struggling Canadian software developer Corel said on Tuesday
its widening second-quarter loss reflects sinking sales for mature
products and that dramatic cost-cutting measures are still needed
to stem the flow of red ink. The loss was in line with a recent
warning from the Ottawa-based company.”
“Corel said the latest results included a one-time loss
of $1.1m from equity investments and a $1.2m gain from the sale of
560,000 shares in GraphOn, in which it has a remaining stake of
about 1.6m shares. The weak performance once again raises questions
about Corel’s future and how the company will cut sufficient costs
to stay afloat.”
“Analysts suggest that meeting the $40m target will be
difficult. “They have miles to go before they sleep,” said Duncan
Stewart, fund manager at Tera Capital, which has held Corel shares
at several times but does not own the stock at present. “There’s a
limited number of places one can get money…”