Corel in the Financial News

October 4, 2006

There have been two big financial stories about Corel in the news lately. One doesn’t paint a very pretty picture and the other does bring some very good news.

We’ll start with an article (may require registration to read) that appears in the October 9 Business Week. I know, it seems strange that the article is dated six days in the future. Remember, magazines are typically dated in advance. The main issue of the story is how Vector Capital bought Corel and took the company private only to fix it up and take it public once again. Along the way, Vector has made a fair amount of money for themselves and those who bought shares haven’t done so well.

They also tell how Corel has incurred a significant amount of debt so that they can buy other midsize software companies. The latest acquisition was InterVideo (and Ulead). Before that was WinZip and two years ago was Jasc. Corel execs admit in the article that they are closely following about fifty companies to see if any of them are a good fit for future acquisitions.

While all of these acquisitions could pay off for Vector, I just fear they won’t pay off for users of the software. We can only hope that extra profits can be put back into development.

That leads us to the profits themselves. Corel released their latest earnings a few days ago. The news was very good. Their earnings were much higher than anyone, including Corel, had forecast. So while Business Week didn’t have too much good to say about the stategy, the numbers seem to paint a much better picture. Or at least they did in the most recent quarter. Only time will tell the whole story.

Post Discussion


Submit a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You May Also Like…

Corel Updates ParticleShop Plugin, Offers New Brushes

About a year and a half ago, Corel released the ParticleShop plug-in. It brings the particle brush technology from Corel Painter to other image editors via the plug-in. According to the product update, "ParticleShop 1.5 includes new brushes that...

Read More

Foster D. Coburn III

Foster D. Coburn III is author of 13 best-selling books on CorelDRAW and has been a contributor to numerous technology and graphics-related magazines. Foster has taken many projects, including this Web site, from the early design stage through to a finished piece. He has been a featured speaker at many graphics conferences. His first Web site was built in 1995 and he has been working exclusively in WordPress since 2013.

Recent Posts

Pro WordPress Help

Divi WordPress Theme

Graphics Unleashed Donations

Personal Info

Donation Total: $5