UPDATE 2-Corel fourth-quarter profit drops, revenue up
(Adds CEO comments; in U.S. dollars unless noted)
TORONTO, Feb 6 (Reuters) - Consumer software maker Corel Corp (CRE.TO) (CREL.O) reported a lower fourth-quarter profit on Wednesday, but said its revenue rose by 53 percent.
Corel, which makes the WordPerfect and WinZip programs, said it earned $3.3 million, or 13 cents a share, for the three months ended Nov. 30, compared with $9.4 million, or 37 cents a share, in the same period the year before.
The Ottawa-based company said total revenue was $72.4 million, up from $47.4 million, helped by organic growth and revenue from products acquired from Ulead and InterVideo.
Corel said a non-cash amortization charge related to the acquisition was a factor in the decline in profit.
"2007 was a big year for Corel where we successfully completed the integration of InterVideo and Ulead into Corel," Chief Executive David Dobson said in an interview.
"We saw some of the fruit of the expense and cost savings ... and we're really now starting to see the benefit of a combined product portfolio that we are releasing into the market."
Last year, Corel bought InterVideo, which makes video and DVD software, for about $196 million.
Dobson said the company will continue to make investments and target emerging markets such as India, China, Eastern Europe and Latin America.
"Emerging markets have been a strong double-digit growth area for Corel over the last couple years and we expect that to grow in 2008," said Dobson. "The Corel brand is very well recognized as a leader in those countries."
On average, analysts had expected earnings per share before exceptions of 47 cents, and revenue of $67.8 million.
Corel said adjusted net income was 51 cents a share, or $13.4 million.
Corel forecast a net loss of as much as $1.5 million, or 6 cents a share, for its next quarter. But it expects net income of $9.3 million to $14.8 million for the fiscal year.
The company also forecast revenue in the range of $61 million to $63 million for the first quarter, and $258 million to $273 million for the year. (Reporting by Leah Schnurr; Editing by Rob Wilson)
