Friday, packaged software company Corel Corporation (CREL, CRE.TO), reported a decline in fourth-quarter profit, hurt by decline in revenue, primarily in its graphics and productivity product segment as the recessionary period settled in. The company also refrained from providing 2009 first-quarter and full year guidance in the backdrop of volatile global economic conditions.
The Ottawa, Canada-based company's net income on a GAAP basis decreased to $1.21 million, or $0.05 per share from GAAP net income of $3.26 million, or $0.13 per share, in the prior year. On an adjusted basis, net income was $11.37 million, or $0.43 per share, compared $13.38 million, or $0.51 per share, a year ago.
On average, three analysts polled by Thomson Reuters expected the company to earn $0.42 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $69.41 million, down 4% from $72.44 million in the previous year, and came below analysts' estimate of $70.46 million. Revenues in the Graphics and Productivity product segment declined to $36.16 million from $39.43 million last year. Digital Media revenues increased to $33.26 million from $33.02 million a year ago.
For full year 2008, GAAP net income was $3.71 million, or $0.14 per share, compared to a GAAP net loss of $13.06 million, or $0.52 per share, last year. Net income on an adjusted basis was $37.8 million or $1.44 per share, compared to $34.03 million or $1.32 per share last year.
Yearly revenues increased 7% to $268.23 million from $250.48 million in the prior year. Analysts expected the company to post earnings of $1.43 per share on revenues of $269.28 million for the year.
Interim CEO Kris Hagerman said, "Looking ahead to 2009, we have an exciting slate of new product introductions that we believe will further enhance our market position, even in a challenging economy."
CREL is currently trading at $3.18, down $0.06 or 1.85%, on the Nasdaq.
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