Corel Corp is set to announce today a major distribution deal with one of the world’s largest computer equipment companies. The Ottawa, Canada-based software maker promises details this afternoon on the alliance, which will see its WordPerfect Suite bundled with almost one-fifth of all computers shipped annually, leaving very few names on a list of possible partners.
Corel has historically seen the smallest portion of its overall revenues come from OEM and bundling deals, with a run rate of about $5m-$6m in each of the past four quarters. In reporting its first-quarter loss last week, Corel said it was involved in talks with several companies about possible deals.
Compaq Computer Corp and Gateway Inc have already bundled the company’s office and graphics software with their PCs. Corel also said that, although in the past it had used such deals as a way to build up its user base, new partnerships would also prove to be profitable for the company as well. In the US, WordPerfect claims 22 million users, while CorelDraw – it’s other flagship product – is said to have an installed base of about five million.
