Business
Corel Corporation Reports First Quarter Results
Corel Corporation Reports First Quarter Results.
About this update from Critical Elements Lithium Corporation
[{"type":"text","content":"\n\n\n\n\nOTTAWA, May 4 /CNW/ - Corel Corporation (NASDAQ:CREL)(TSX:CRE) today\nreported results for its first quarter ended February 28, 2006, consistent\nwith the preliminary results reported in the Company's Final Prospectus from\nits Initial Public Offering dated April 25, 2006. Results from WinZip's\noperations are included from January 18, 2005 under the rules of SFAS 141.\nTotal revenues in the first quarter of fiscal 2006 were $44.3 million, an\nincrease of 11% over total revenues of $40.0 million in the first quarter of\nfiscal 2005. Income from operations for the 2006 first quarter was $5.7\nmillion, compared to $4.0 million in the first quarter of 2005, an increase of\n41%. The Company recorded income tax expense of $3.2 million in the quarter,\nincluding $2.4 million related to WinZip, and interest expense of $3.9\nmillion, resulting in a net loss of $1.6 million, or $(0.08) per pro forma\ndiluted share. In the first quarter of fiscal 2005, the Company recorded a tax\nexpense of $180,000 and interest expense of $2.0 million, resulting in a net\nloss of $2.5 million, or $(0.16) per share.\nAdjusted EBITDA in the first quarter of fiscal 2006 was $14.4 million, a\n19% increase compared to $12.1 million in the first quarter of fiscal 2005. A\nreconciliation of Cash Flow from Operations, which was $5.9 million and $9.0\nmillion in the first quarters of fiscal years 2006 and 2005, respectively, to\nAdjusted EBITDA can be found in the tables accompanying this press release.\nDavid Dobson, CEO of Corel Corporation, said, \"We are pleased with our\nfirst quarter results that reflect the fundamental strengths of the Corel\nbusiness model. The acquisition of WinZip delivered positive results in the\nquarter, contributing to the increase in revenue and operating income. During\nthe quarter we also signed a new OEM agreement with Lenovo, the third largest\nPC manufacturer in the world. This agreement supports our goal of extending\nCorel's reach into both mature and emerging markets by offering\nvalue-conscious consumers full-featured, easy-to-use products that are highly\ncompatible with industry standards.\"\nOn May 2, 2006, Corel completed its initial public offering of 6,500,000\ncommon shares at US $16.00 (CDN $18.11) per share. As part of the offering,\nCorel sold 5,000,000 common shares and certain selling shareholders sol...