Software developer Corel Corporation`s net loss for fiscal 2002 grew to $96.4 million, more than 13 times the $7.3 million loss incurred in the 2001 financial year.
The loss amounts to $1.09 a share against $0.10 the previous year.
In the fourth quarter to 30 November, Corel incurred a $27.8 million net loss, amounting to a loss of $0.30 a share, compared with a 2001 fourth quarter loss of $10.7 million or $0.14 a share.
The full-year loss includes costs of $5.9 million relating to layoffs and $67.7 million for the write-down of intangible assets of technology and goodwill.
We begin 2003 with a strong cash position, no long-term debt and a clean balance sheet, having written off goodwill and a significant portion of our acquired technologies.
Derek Burney, president and CEO, Corel Corporation
Were these charges excluded, the group would have reported a full-year net loss of $31.6 million or just more than $0.38 a share.
Revenue for the fourth quarter rose 6% to $33.5 million from $31.6 million in fourth quarter 2001. Full-year revenue of $126.7 million was 6% down on the $134.3 million a year earlier.
In SA, Corel Corporation achieved a 53% increase in sales for the 2002 year.
Country manager Beverley Rogers says this is due to the local market having more focused distribution partners who have been able to assist Corel in growing business in key areas.
"While we expect to see continued growth with our key graphics products, being CorelDRAW graphics Suite and Painter, we expect to see an exponential growth with the iGrafx range of process improvement products, as companies are under increasing pressure to deliver more flexible services at ever reducing costs."
Outlook
Corel Corporation president and CEO Derek Burney says the strategy for last year was to lay the foundation for growth and profitability by making investments in key areas of the company.
"We executed on that strategy by establishing enterprise sales forces in both North America and Europe, by making research and development investments in new enterprise solutions and by enhancing the infrastructure in Europe to support its success.
"We begin 2003 with a strong cash position, no long-term debt and a clean balance sheet, having written off goodwill and a significant portion of our acquired technologies."
Burney says the core business of established product lines, specifically CorelDRAW and WordPerfect, should continue to generate the revenues needed to be profitable in 2003 as well as fund the investments in new enterprise solutions.
The company will continue to expand its network of partnerships to increase its presence in the enterprise and serve markets where adoption is driven by the increasing reliance on mobile devices and the growth of Web services.
Corel expects to have positive earnings before interest, taxation, depreciation and amortisation in fiscal 2003.
"We are committed to growing our revenue and running our business profitably in 2003, regardless of the prevailing economic climate," Burney says.
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