[LOGO OF COREL APPEARS HERE] EXHIBIT 99.01
COREL FINANCIAL CONTACT: COREL PRESS CONTACT:
Michael O'Reilly Carrie Bendzsa
613-728-0826 ext 1667 613-728-0826 ext 1524
michaelor@corel.ca carriebe@corel.ca
FOR IMMEDIATE RELEASE
COREL ANNOUNCES FOURTH QUARTER 1997 RESULTS
RESTATES FIRST THREE QUARTERS
OTTAWA, CANADA--JANUARY 20, 1998--Today, Corel Corporation released its 1997
fourth quarter financial results and results for its fiscal year ended November
30, 1997. (All the financial information is expressed in U.S. currency.)
Revenues for the fourth quarter were $43.6 million, and for the full year were
$260.6 million. The Company's net loss for the 1997 fiscal year was $231.8
million or $3.34 per share (fully diluted), which corresponds with the aggregate
of the previously reported results for the first three quarters and the
estimated loss for the fourth quarter of $95 million announced on December 18,
1997. That estimate included a write-off of approximately $28 million relating
to the unamortized balance of costs of certain JAVA technologies acquired
through technology exchange transactions during the first three quarters of
fiscal 1997.
The result actually reported for the fourth quarter is a loss of $67 million, or
$1.00 per share (fully diluted). This differs from the $95 million estimate
because the revenues and the related amortization of costs previously reported
for the JAVA technologies exchange transactions will be eliminated in the
audited financial statements for the year, thereby eliminating the $28 million
write-off in the fourth quarter. The accounting treatment of these transactions
in the first three quarters was considered appropriate at the time. The
treatment now adopted results from further consideration by the Company's
auditors in connection with the year-end audit.
Applying this treatment for the first three quarters results in reductions in
revenues of $13 million, $13 million and $7 million, producing losses of $11.3
million, $117.6 million and $35.9 million in the first, second, and third
quarters, respectively. The quarterly results as reported for the first three
quarters are restated accordingly. The full effects of the restatement are set
out in detail in the financial summaries released today.
As previously estimated, actual fourth quarter results indicate the Company's
cash position increased during the fourth quarter by more than $8 million to
$30.6 million in cash and short-term investments. At the same time, current
liabilities have remained reasonably constant relative to the fourth quarter of
fiscal 1996 while long-term debt relating to the acquisition of WordPerfect
technologies continues to decline. The Company has not borrowed or required any
additional financing throughout fiscal 1997. The carrying value of the Company's
inventories at the end of the fourth quarter of fiscal 1997 has been reduced by
more than 60% from its level at the end of the fourth quarter of fiscal 1996.
Dr. Michael Cowpland, president and CEO commented: "While the results for the
1997 fiscal year are disappointing, the Company remains strong and well
positioned for a successful 1998. In our continuing focus on core products, the
Company divested a number of product categories in 1997 that did not directly
support our key graphics and business productivity software lines. We see this
as enhancing our ability to provide approximately 25 million users of CorelDraw
and of the WordPerfect family of products with the most effective graphics and
office productivity tools available. Our products continue to be well received
in the marketplace. We are convinced that this strategy will keep us on the
competitive edge, particularly in our growing corporate licensing market.
Further, our significant ongoing investment in Java is now bringing us very
close to the start of a new era in Webtop computing, that combines the power of
Java, dynamic HTML and XML. As many leaders in our industry are acknowledging,
the emergence of this new type of technology may be one of the most compelling
events on the 1998 horizon and we are very excited about being at the
forefront."
This press release may contain certain statements that are forward looking as
that term is defined in the US Private Securities Litigation Reform Act of 1995.
---------------------------------------------------
These statements are based on current expectations that are subject to risks and
uncertainties. Actual results will differ due to factors such as customer
demand, product ship schedules, PC shipment growth, product mix, competitive
products and pricing, technological shifts and other issues discussed in the
company's Report on Form 10-K.
Incorporated in 1985, Corel Corporation is recognized internationally as an
award-winning developer and marketer of productivity applications, graphics and
Internet software. Corel's product line includes CorelDRAW/TM/, Corel(R)
WordPerfect(R) Suite, Corel(R) Office Professional, and Corel(R) WebMaster
Suite. Corel's products run on most operating systems, including: Windows(R),
Macintosh(R), UNIX, MS-DOS, and OpenVMS and are consistently rated among the
strongest in the industry. The company ships its products in over 17 languages
through a network of more than 160 distributors in 70 countries worldwide. Corel
is traded on the Toronto Stock Exchange (symbol: COS) and the NASDAQ - National
Market System (symbol: COSFF). For more information visit Corel's home page on
the Internet at http://www.corel.com.
--------------------
-30-
Corel, WordPerfect, CorelDRAW, Corel VENTURA and Corel WebMaster Suite are
trademarks or registered trademarks of Corel Corporation or Corel Corporation
Limited. Windows is a registered trademark of Microsoft Corporation. Macintosh
is a registered trademark of Apple Computer Corp. All other product and company
names are trademarks or registered trademarks of their respective companies.
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER ENDED FEBRUARY 28, 1997
- -------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars, 000s omitted except per share data, unaudited)
- -------------------------------------------------------------------------
QUARTER ENDED
- -------------------------------------------------------------------------
FEBRUARY 28, 1997 February 29, 1996
- -------------------------------------------------------------------------
Sales $ 80,718 $ 36,423
Cost of sales 24,023 9,446
- -------------------------------------------------------------------------
Gross Profit 56,695 26,977
Expenses:
Advertising 19,873 15,397
Selling, general and administrative 19,652 10,539
Research and development 18,823 8,219
Depreciation and amortization 6,894 3,671
Loss on foreign exchange 183 301
- -------------------------------------------------------------------------
65,425 38,127
- -------------------------------------------------------------------------
Income (loss) from operations (8,730) (11,150)
Interest expense (income) 501 (1,000)
- -------------------------------------------------------------------------
Income (loss) before income taxes (9,231) (10,150)
Income taxes 2,023 (3,551)
- -------------------------------------------------------------------------
Net income (loss) $(11,254) $ (6,599)
=========================================================================
EARNINGS PER SHARE:
Net loss per common share
Basic $ (0.19) $ (0.13)
Fully diluted $ (0.16) $ (0.12)
Average number of common shares
outstanding (000s)
Basic 60,068 49,605
Fully diluted 72,400 56,864
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER ENDED FEBRUARY 28, 1997
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(US dollars, 000s omitted, unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FEBRUARY 28, 1997 November 30, 1996
- --------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and short-term investments $ 12,016 $ 6,924
Accounts receivable - Trade 118,955 135,338
- Other 1,669 1,341
Inventory 31,874 30,390
Income taxes recoverable 607 12
Deferred income taxes 4,190 2,940
Prepaid expenses 17,550 18,388
-------- --------
186,861 195,333
Deferred income taxes 1,444 870
Capital assets 186,331 202,275
-------- --------
$374,636 $398,478
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,775 $ 17,592
Accrued liabilities 27,912 34,801
Current portion of long-term debt 15,888 15,500
Deferred revenue 8,426 6,495
-------- --------
65,001 74,388
Long-term debt 30,388 33,830
Shareholders' equity:
Share capital 203,194 202,953
Contributed surplus 352 352
Retained earnings 75,701 86,955
-------- --------
279,247 290,260
-------- --------
$374,636 $398,478
======== ========
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER ENDED FEBRUARY 28, 1997
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(US dollars, 000s omitted, unaudited)
- --------------------------------------------------------------------------------
QUARTER ENDED
- --------------------------------------------------------------------------------
FEBRUARY 28, 1997 February 29, 1996
- --------------------------------------------------------------------------------
Cash provided by (used for):
Operations:
Net income (loss) $ (11,254) $ (6,599)
Items which do not involve cash:
Depreciation and amortization 20,756 5,961
Loss (gain) on disposal of assets (1) 1,446
Deferred income taxes (1,824) (202)
Changes in non-cash working capital 5,039 (18,975)
--------- ---------
12,716 (18,369)
========= =========
Financing:
Issue of share capital 241 4,638
Repayment of long-term debt (3,054) --
--------- ---------
(2,813) 4,638
========= =========
Investments:
Purchase of capital assets (4,845) (9,220)
Proceeds on disposal of assets 34 49
--------- ---------
(4,811) (9,171)
========= =========
Net increase (decrease) in cash 5,092 (22,902)
Cash at beginning of period 6,924 81,816
--------- ---------
Cash at end of period $ 12,016 $ 58,914
========= =========
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND SIX MONTHS ENDED MAY 31, 1997
- -------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars, 000s omitted except per share data, unaudited)
- -------------------------------------------------------------------------
QUARTER ENDED MAY 31 SIX MONTHS ENDED MAY 31
- --------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
- --------------------------------------------------------------------------------------------------------------
Sales $ 87,413 $87,474 $ 168,131 $123,897
Cost of sales 18,828 21,748 42,851 31,194
- --------------------------------------------------------------------------------------------------------------
Gross Profit 68,585 65,726 125,280 92,703
Expenses:
Advertising 20,529 22,674 40,402 38,071
Selling, general and administrative 22,059 20,180 41,711 30,719
Research and development 22,298 17,355 41,121 25,574
Depreciation and amortization 7,282 4,882 14,176 8,553
Write-down of purchased software
and royalties 113,674 - 113,674 -
Loss on foreign exchange 834 108 1,017 409
- --------------------------------------------------------------------------------------------------------------
186,676 65,199 252,101 103,326
- --------------------------------------------------------------------------------------------------------------
Income (loss) from operations (118,091) 527 (126,821) (10,623)
Interest expense (income) 337 (246) 838 (1,246)
- --------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (118,428) 773 (127,659) (9,377)
Income taxes (806) 267 1,217 (3,284)
- --------------------------------------------------------------------------------------------------------------
Net income (loss) $(117,622) $ 506 $(128,876) $ (6,093)
Retained earnings beginning of period 75,701 83,106 86,955 89,705
Premium on cancellation of shares (269) - (269) -
- --------------------------------------------------------------------------------------------------------------
Retained earnings (deficit) end of period $ (42,190) $83,612 $ (42,190) $ 83,612
==============================================================================================================
EARNINGS PER SHARE:
Net income (loss) per common share
Basic $ (1.96) $ 0.01 $ (2.15) $ (0.11)
Fully diluted $ (1.66) $ 0.01 $ (1.80) $ (0.10)
Average number of common shares
outstanding (000s)
Basic 60,082 59,717 60,075 54,689
Fully diluted 70,844 69,393 71,613 63,163
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND SIX MONTHS ENDED MAY 31, 1997
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(US dollars, 000s omitted, unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MAY 31, 1997 November 30, 1996
- --------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and short-term investments $ 20,634 $ 6,924
Accounts receivable - Trade 106,645 135,338
- Other 5,132 1,341
Inventory 25,009 30,390
Income taxes recoverable 10,389 12
Deferred income taxes 2,528 2,940
Prepaid expenses 4,173 18,388
-------- --------
174,510 195,333
Deferred income taxes 239 870
Investment 1,633 --
Capital assets 77,911 202,275
-------- --------
$254,293 $398,478
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 14,806 $ 17,592
Accrued liabilities 28,188 34,801
Current portion of long-term debt 14,500 15,500
Deferred revenue 8,156 6,495
-------- --------
65,650 74,388
Long-term debt 27,644 33,830
Shareholders' equity:
Share capital 202,837 202,953
Contributed surplus 352 352
Retained earnings (deficit) (42,190) 86,955
-------- --------
160,999 290,260
-------- --------
$254,293 $398,478
======== ========
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND SIX MONTHS ENDED MAY 31, 1997
- -----------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(US dollars, 000s omitted, unaudited)
- -----------------------------------------------------------------------------------------
QUARTER SIX MONTHS
ENDED MAY 31 ENDED MAY 31
- -----------------------------------------------------------------------------------------
1997 1996 1997 1996
- -----------------------------------------------------------------------------------------
Cash provided by (used for):
Operations:
Net income (loss) $(117,622) $ 506 $(128,876) $ (6,093)
Items which do not involve cash:
Depreciation and amortization 10,013 13,006 30,769 18,967
Loss (gain) on disposal of assets (60) 218 (61) 1,664
Deferred income taxes 2,867 (582) 1,043 (784)
Write-down of purchased software
and royalties 113,674 -- 113,674 --
Changes in non-cash working capital 12,528 (31,630) 17,567 (50,605)
- ----------------------------------------------------------------------------------------
21,400 (18,482) 34,116 (36,851)
- ----------------------------------------------------------------------------------------
Financing:
Issue of share capital 34 90,655 275 95,293
Shares purchased for cancellation (660) -- (660) --
Increase in long-term debt -- 55,000 -- 55,000
Repayment of long-term debt (4,132) -- (7,186) --
- ----------------------------------------------------------------------------------------
(4,758) 145,655 (7,571) 150,293
- ----------------------------------------------------------------------------------------
Investments:
Purchase of investment (1,633) -- (1,633) --
Purchase of capital assets (6,445) (178,791) (11,290) (188,011)
Proceeds on disposal of assets 54 199 88 248
- ----------------------------------------------------------------------------------------
(8,024) (178,592) (12,835) (187,763)
- ----------------------------------------------------------------------------------------
Net increase (decrease) in cash 8,618 (51,419) 13,710 (74,321)
Cash at beginning of period 12,016 58,914 6,924 81,816
- ----------------------------------------------------------------------------------------
Cash at end of period $ 20,634 $ 7,495 $ 20,634 $ 7,495
- ----------------------------------------------------------------------------------------
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND NINE MONTHS ENDED AUGUST 31, 1997
- -------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars, 000s omitted except per share data, unaudited)
- -------------------------------------------------------------------------
QUARTER ENDED AUGUST 31 NINE MONTHS ENDED AUGUST 31
- --------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
- --------------------------------------------------------------------------------------------------------------
Sales $ 48,803 $ 84,942 $ 216,934 $208,839
Cost of sales 13,221 33,040 56,072 64,234
- --------------------------------------------------------------------------------------------------------------
Gross Profit 35,582 51,902 160,862 144,605
Expenses:
Advertising 20,523 22,921 60,925 60,992
Selling, general and administrative 22,462 19,359 64,173 50,848
Gain on sale of CD Creator - (10,426) - (10,426)
Research and development 22,433 19,611 63,554 44,415
Depreciation and amortization 7,419 5,483 21,595 14,036
Write-down of purchased software
and royalties - - 113,674 -
Loss (gain) on foreign exchange 402 (509) 1,419 (100)
- --------------------------------------------------------------------------------------------------------------
73,239 56,439 325,340 159,765
- --------------------------------------------------------------------------------------------------------------
Income (loss) from operations (37,657) (4,537) (164,478) (15,160)
Interest expense (income) 152 (441) 990 (1,687)
- --------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (37,809) (4,096) (165,468) (13,473)
Income taxes (1,897) (895) (680) (4,179)
- --------------------------------------------------------------------------------------------------------------
Net income (loss) $(35,912) $ (3,201) $(164,788) $ (9,294)
Retained earnings (deficit)
beginning of period (42,190) 83,612 86,955 89,705
Premium on cancellation of shares (100) - (369) -
- --------------------------------------------------------------------------------------------------------------
Retained earnings (deficit) end of period $(78,202) $ 80,411 $ (78,202) $ 80,411
==============================================================================================================
EARNINGS PER SHARE:
Net income (loss) per common share
Basic $ (0.59) $ (0.05) $ (2.74) $ (0.16)
Fully diluted $ (0.53) $ (0.05) $ (2.35) $ (0.14)
Average number of common shares
outstanding (000s)
Basic 60,565 59,859 60,239 56,418
Fully diluted 67,270 69,754 70,155 65,368
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND NINE MONTHS ENDED AUGUST 31, 1997
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(US dollars, 000s omitted, unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AUGUST 31, 1997 November 30, 1996
- --------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and short-term investments $ 22,481 $ 6,924
Accounts receivable - Trade 77,901 135,338
- Other 4,755 1,341
Inventory 25,684 30,390
Income taxes recoverable 8,345 12
Deferred income taxes 3,885 2,940
Prepaid expenses 3,011 18,388
-------- --------
146,062 195,333
Deferred income taxes 405 870
Capital assets 72,525 202,275
-------- --------
$218,992 $398,478
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,760 $ 17,592
Accrued liabilities 32,967 34,801
Current portion of long-term debt 14,400 15,500
Deferred revenue 8,359 6,495
-------- --------
63,486 74,388
Long-term debt 24,900 33,830
Shareholders' equity:
Share capital 208,456 202,953
Contributed surplus 352 352
Retained earnings (deficit) (78,202) 86,955
-------- --------
130,606 290,260
-------- --------
$218,992 $398,478
======== ========
COREL CORPORATION
RESTATED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND NINE MONTHS ENDED AUGUST 31, 1997
- ---------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(US dollars, 000s omitted, unaudited)
- ---------------------------------------------------------------------------------------------------------
QUARTER NINE MONTHS
ENDED AUGUST 31 ENDED AUGUST 31
- ---------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------------------
Cash provided by (used for):
Operations:
Net income (loss) $(35,912) $ (3,201) $(164,788) $ (9,294)
Items which do not involve cash:
Depreciation and amortization 12,674 17,769 43,443 36,736
Loss (gain) on disposal of assets (57) 56 (118) 1,720
Deferred income taxes (1,523) (690) (480) (1,474)
Write-down of purchased software
and royalties -- -- 113,674 --
Write-down of investments 1,633 -- 1,633 --
Changes in non-cash working capital 29,588 (4,027) 47,155 (54,632)
- ---------------------------------------------------------------------------------------------------------
6,403 9,907 40,519 (26,944)
- ---------------------------------------------------------------------------------------------------------
Financing:
Issue of share capital 5,761 793 6,036 96,086
Shares purchased for cancellation (242) -- (902) --
Increase in long-term debt -- -- -- 55,000
Repayment of long-term debt (2,844) (2,059) (10,030) (2,059)
- ---------------------------------------------------------------------------------------------------------
2,675 (1,266) (4,896) 149,027
- ---------------------------------------------------------------------------------------------------------
Investments:
Purchase of investment -- -- (1,633) --
Purchase of capital assets (7,291) (13,927) (18,581) (201,938)
Proceeds on disposal of assets 60 4 148 252
- ---------------------------------------------------------------------------------------------------------
(7,231) (13,923) (20,066) (201,686)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash 1,847 (5,282) 15,557 (79,603)
Cash at beginning of period 20,634 7,495 6,924 81,816
- ---------------------------------------------------------------------------------------------------------
Cash at end of period $ 22,481 $ 2,213 $ 22,481 $ 2,213
=========================================================================================================
COREL CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND YEAR ENDED NOVEMBER 30, 1997
- -------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars, 000s omitted except per share data, unaudited)
- -------------------------------------------------------------------------
QUARTER ENDED NOVEMBER 30 YEAR ENDED NOVEMBER 30
- --------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
- --------------------------------------------------------------------------------------------------------------
Sales $ 43,647 $125,406 $ 260,581 $334,245
Cost of sales 28,064 36,860 84,136 101,094
- --------------------------------------------------------------------------------------------------------------
Gross Profit 15,583 88,546 176,445 233,151
Expenses:
Advertising 18,636 31,690 79,561 92,682
Selling, general and administrative 20,307 20,941 84,480 71,019
Gain on sale of CD Creator - - - (10,426)
Research and development 25,945 20,742 89,499 65,927
Depreciation and amortization 4,680 5,045 26,275 19,081
Write-down of purchased software
and royalties 3,838 - 117,512 -
Loss (gain) on foreign exchange (655) (41) 764 (141)
- --------------------------------------------------------------------------------------------------------------
72,751 78,377 398,091 238,142
- --------------------------------------------------------------------------------------------------------------
Income (loss) from operations (57,168) 10,169 (221,646) (4,991)
Interest expense (income) 164 296 1,154 (1,391)
- --------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (57,332) 9,873 (222,800) (3,600)
Income taxes 9,558 3,329 8,878 (850)
- --------------------------------------------------------------------------------------------------------------
Net income (loss) $ (66,890) $ 6,544 $(231,678) $ (2,750)
Retained earnings (deficit)
beginning of period (78,202) 80,411 86,955 89,705
Premium on cancellation of shares (64) - (433) -
- --------------------------------------------------------------------------------------------------------------
Retained earnings (deficit) end of period $(145,156) $ 86,955 $(145,156) $ 86,955
==============================================================================================================
EARNINGS PER SHARE:
Net income (loss) per common share
Basic $ (1.10) $ 0.11 $ (3.84) $ (0.05)
Fully diluted $ (1.00) $ 0.09 $ (3.34) $ (0.04)
Average number of common shares
outstanding (000s)
Basic 60,623 59,920 60,297 57,289
Fully diluted 66,772 70,649 69,272 66,681
COREL CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND YEAR ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(US dollars, 000s omitted, unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOVEMBER 30, 1997 November 30, 1996
- --------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and short-term investments $ 30,629 $ 6,924
Accounts receivable - Trade 50,951 135,338
- Other 2,310 1,341
Inventory 11,412 30,390
Income taxes recoverable -- 12
Deferred income taxes 2,353 2,940
Prepaid expenses 2,591 18,388
--------- --------
100,246 195,333
Deferred income taxes -- 870
Capital assets 63,497 202,275
--------- --------
$ 163,743 $398,478
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 13,840 $ 17,592
Accrued liabilities 34,223 34,801
Current portion of long-term debt 13,500 15,500
Income taxes payable 4,203 --
Deferred revenue 14,124 6,495
--------- --------
79,890 74,388
Long-term debt 24,044 33,830
Shareholders' equity:
Share capital 204,235 202,953
Contributed surplus 730 352
Retained earnings (deficit) (145,156) 86,955
--------- --------
59,809 290,260
--------- --------
$ 163,743 $398,478
========= ========
COREL CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
QUARTER AND YEAR ENDED NOVEMBER 30, 1997
- -------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(US dollars, 000s omitted, unaudited)
- -------------------------------------------------------------------------------------------------------------------
QUARTER YEAR
ENDED NOVEMBER 30 ENDED NOVEMBER 30
- -------------------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------
Cash provided by (used for):
Operations:
Net income (loss) $(66,890) $ 6,544 $(231,678) $ (2,750)
Items which do not involve cash:
Depreciation and amortization 8,839 19,817 52,282 58,553
Loss (gain) on disposal of assets (288) (11) (406) 1,709
Deferred income taxes 1,937 (4,831) 1,457 (6,305)
Write-down of purchased software
and royalties 3,838 -- 117,512 --
Changes in non-cash working capital 68,371 (4,412) 115,526 (59,044)
- -------------------------------------------------------------------------------------------------------------------
15,807 17,107 54,693 (9,837)
- -------------------------------------------------------------------------------------------------------------------
Financing:
Issue of share capital 170 1,066 6,206 97,152
Shares purchased for cancellation (4,077) -- (4,979) --
Increase in long-term debt -- -- -- 55,000
Repayment of long-term debt (1,756) (3,611) (11,786) (5,670)
- -------------------------------------------------------------------------------------------------------------------
(5,663) (2,545) (10,559) 146,482
- -------------------------------------------------------------------------------------------------------------------
Investments:
Purchase of capital assets (4,842) (9,879) (23,423) (211,817)
Proceeds on disposal of assets 2,846 28 2,994 280
- -------------------------------------------------------------------------------------------------------------------
(1,996) (9,851) (20,429) (211,537)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash 8,148 4,711 23,705 (74,892)
Cash at beginning of period 22,481 2,213 6,924 81,816
- -------------------------------------------------------------------------------------------------------------------
Cash at end of period $ 30,629 $ 6,924 $ 30,629 $ 6,924
===================================================================================================================