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8-K - FORM 8-K - COREL CORP | c94354e8vk.htm |
Exhibit 99.1
For Immediate Release
Corel Streamlines Global Operations
OTTAWA, Canada January 7, 2010 Corel Corporation (NASDAQ:CREL) (TSX:CRE) today announced that
it is reducing its global workforce by approximately 20% worldwide. The Company is taking these
actions to appropriately align its cost structure with its FY2010 operating plan while providing
additional flexibility to fund investments in new product development.
For 25 years, Corel has demonstrated an ability to adapt and evolve in order to meet new consumer
demands and an ever changing competitive landscape, said Kris Hagerman, Corel CEO. In building
our operating plan for 2010, we are aligning our cost structure so that we have the financial
flexibility to continue to innovate and deliver new products to the market, drive broad awareness
of our products and global brand, and ensure we are making the best use of our global teams and
resources.
Forward Looking Statements:
This news release includes forward-looking statements which are based on estimates and assumptions made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances including but not limited to general economic conditions, product pricing levels and competitive intensity, and new product introductions.
This news release includes forward-looking statements which are based on estimates and assumptions made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances including but not limited to general economic conditions, product pricing levels and competitive intensity, and new product introductions.
Such forward-looking statements involve known and unknown risks, uncertainties and other important
factors that could cause actual results, performance or achievements to differ materially from any
future results, performance, or achievements discussed or implied by such forward-looking
statements. Such risks include the recent disruption in the overall economy and financial and
credit markets, which may adversely impact our operations and financial results as well as our
ability to obtain financing required to grow our business and make acquisitions. We may experience
fluctuations in our operating results depending on the timing and success of product releases. Our
core products have been marketed for many years and the packaged software market in North America
and Europe is relatively mature and characterized by modest growth. Accordingly, we must
successfully complete acquisitions, penetrate new markets, establish relationships with new
original equipment manufacturer customers, or increase penetration of our installed base to achieve
revenue growth. The long-term trend in our business reflects growth in revenues from acquisitions,
which give rise to their own risks and challenges, rather than from our existing products, and that
recent growth may not be representative of future growth. We face competitive threats from well
established software companies that have significantly greater market share and resources than us
and from online services companies that are increasingly seeking to provide software products at
little or no incremental cost to their customers to expand their Internet presence and build
consumer loyalty. We rely on a small number of key strategic relationships for a significant
percentage of our revenue and these relationships can be modified or terminated at any time. In
addition, we face potential claims from third parties who may hold patent and other intellectual
property rights which purport to cover various aspects of our products and from certain of our customers who may be entitled to
indemnification from us in respect of potential claims they may receive from third parties related
to their use or distribution of our products. Any resulting litigation costs, settlement costs or
royalty requirements could affect our profitability.
These and other risks, uncertainties and other important factors are described in Corels Annual
Report dated February 9, 2009, filed with the Securities and Exchange Commission (SEC) and the
Canadian Securities Administrators (CSA) under the caption Risk Factors and elsewhere. A copy of
the Corel Annual Report and such other filings can be obtained on Corels website, on the SECs
website at http://www.sec.gov./ or on the CSAs website at http://www.sedar.com. These
factors should be considered carefully, and readers should not place undue reliance on our
forward-looking statements. Forward-looking statements speak only as of the date of the document in
which they are made. We disclaim any intention or undertaking to provide any updates or revisions
to any forward-looking statement to reflect any change in our expectations or any change in events,
conditions or circumstances on which the forward-looking statement is based, except as required by
law.
About Corel
Corel is one of the worlds top software companies with more than 100 million active users in over
75 countries. We develop software that helps people express their ideas and share their stories in
more exciting, creative and persuasive ways. Through the years, weve built a reputation for
delivering innovative, trusted products that are easy to learn and use, helping people achieve new
levels of productivity. The industry has responded with hundreds of awards for software innovation,
design and value.
Our award-winning product portfolio includes some of the worlds most widely recognized and popular
software brands, including CorelDRAW®Graphics Suite, Corel®Painter, Corel DESIGNER®Technical
Suite, Corel®Paint Shop Pro®Photo, Corel®VideoStudio®, Corel®WinDVD®, Corel®WordPerfect®Office,
WinZip®,and the recently released Corel®Digital Studio2010. Our global headquarters are in Ottawa,
Canada, with major offices in the United States, United Kingdom, Germany, China, Taiwan and Japan.
© 2010 Corel Corporation. All rights reserved. Corel, Corel DESIGNER, CorelDRAW, Paint Shop Pro,
Painter, WinDVD, WordPerfect, WinDVD, WinZip and the Corel logo are trademarks or registered
trademarks of Corel Corporation and/or its subsidiaries. All other product names and any registered
and unregistered trademarks mentioned are used for identification purposes only and remain the
exclusive property of their respective owners.
CRELF
Press/Investor Contact:
Catherine Hughes, 613-728-0826 x1659
catherine.hughes@corel.com
Catherine Hughes, 613-728-0826 x1659
catherine.hughes@corel.com