The company has also cut 66 employees, nine percent of staff, to manage expenses relative to expected revenue performance.
A lackluster first half performance underlines why Corel has accepted a $96.2m cash acquisition by Vector Capital Corp.
In the second quarter to May 31, the net loss was $5.5m, down from $6.3m on revenue 4.7% higher at $32.2m. At the mid-term stage the loss was $6.1m, down from $9.5m on revenue 2.3% lower at $60.5m.
In the first half, revenue from graphics products fell 12.3% to $29.2m, office products rose $3.8m to $23.9m, while process management declined 4.5% to $4.5m. The other category, which includes its XML products, produced revenue of $2.8m in the half, a big jump from the $0.8m recorded at the same time last year.
What the new management that the company so desperately needs will need to address is the company’s poor sales overseas. While sales in North American markets rose 25.7% in the second quarter to $20.5m, those in the EMEA regions dropped 23.2% to $9.6m while sales in Asia/Pacific and Latin America slumped 34% to $1.8m.
Source: Computerwire
