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CNET News.com/Reuters: Questions mount about Corel's viability

Jun 21, 2000, 22:45 (5 Talkback[s])


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"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."

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