Corel Corporation Reports Preliminary First Quarter 2007 Financial Results



    Company delays filing of quarterly results to complete allocations
related to InterVideo acquisition

    OTTAWA, April 12 /CNW/ - Corel Corporation (NASDAQ:  CREL; TSX:CRE) today
reported preliminary financial results for its first quarter ended February
28, 2007. Revenues in the first quarter of fiscal 2007 are expected to be at
the high end of guidance and earnings are expected to be above guidance. On
January 18, 2007, the Company provided guidance for the first quarter of 2007
of revenue in the range of $51 million to $53 million, GAAP EPS of $(0.70) to
$(0.78) per share and non-GAAP EPS of $(0.04) to 0.04 per share. These
financial results were prepared by management of the Company and are
unaudited. The Company also reaffirmed its previous guidance for the full 2007
fiscal year.

    The Company also announced today that it intends to delay the filing of
its Quarterly Report on Form 10-Q until no later than April 20, 2007. The
Company intends to delay its filing of quarterly results to complete the
accounting of its acquisition of InterVideo on December 12, 2006, specifically
regarding the allocation of the purchase price related to the acquisition. As
a result of this delay, the Company has postponed its results conference call,
originally scheduled for today at 4:30 p.m. eastern time. The Company will
announce a new time for the first quarter earnings conference call shortly.

    "Corel had a very solid quarter during which we completed the acquisition
of InterVideo," said David Dobson, CEO of Corel Corporation. "We do not expect
the review of the purchase price allocation to impact our quarterly results or
our forward guidance. We are looking forward to completing this process and
discussing our final results with shareholders."

    The Company intends to satisfy the alternate information disclosure
requirements under applicable policies of the Canadian securities regulatory
authorities until it has completed its required quarterly filings.

    Forward-Looking Statements:

    This news release includes forward-looking statements that are based on
certain assumptions and reflect our current expectations. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors that could cause the 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
competitive threats from well-established software companies that have
significantly greater market share and resources than us, new entrants that
benefit from industry trends, such as the increasing importance of Internet
distribution and open source software, 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, 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 or increase penetration of our installed base to achieve revenue
growth. In addition, we face risks related to the acquisition of InterVideo,
Inc., including the risk that disruption from the transaction may make it more
difficult to maintain relationships with customers, employees, or suppliers.
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.

    These and other risks, uncertainties and other important factors are
described in Corel's Prospectus dated April 25, 2006, filed with the
Securities and Exchange Commission (The SEC) pursuant to Rule 462(b) of the
rules and regulations under the Securities Act of 1933 and Corel's other
filings with the SEC including Corel's form 10-Q for the quarter ended August
31, 2006 under the caption "Risk Factors" and elsewhere. A copy of the Corel
Prospectus and such other filings can be obtained on Corel's website or on the
SEC's website a http://www.sec.gov. http://www.sec.gov./ Certain of such risks
are also included in Corel's Canadian supplemented PREP prospectus dated April
25, 2006 available at http://www.sedar.com. In addition, these and other risks
can be found in InterVideo's previous reports filed with the SEC under the
caption "Risk Factors" and elsewhere, including InterVideo's 10-Q for the
quarter ended September 30, 2006, which can be found on InterVideo's website
or on the SEC's website at http://www.sec.gov. Forward-looking statements
speak only as of the date of the document in which they are made. We disclaim
any obligation 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.

    Financial Presentation and Use of Non-GAAP Measures:

    Our financial statements have been prepared in accordance with U.S.
generally accepted accounting principles, or GAAP, which differ in certain
material respects from Canadian generally accepted accounting principles. In
addition, our financial statements and information in this release are
presented in U.S. Dollars, unless otherwise indicated. This news release
includes certain non-GAAP financial measures, such as adjusted net income and
adjusted EBITDA. We use these non-GAAP financial measures to confirm our
compliance with covenants contained in our debt facilities, as supplemental
indicators of our operating performance and to assist in evaluation of our
liquidity. These measures do not have any standardized meanings prescribed by
GAAP and therefore are not comparable to the calculation of similar measures
used by other companies, and should not be viewed as alternatives to measures
of financial performance or changes in cash flows calculated in accordance
with GAAP. Reconciliations of these non-GAAP financial measures to the closes
GAAP measures are set out in the notes to the financial statements attached to
this news release.

    About Corel Corporation

    Corel is a leading developer of graphics, productivity and digital media
software with more than 100 million users worldwide. The Company's product
portfolio includes some of the world's most popular and widely recognized
software brands including CorelDRAW(R) Graphics Suite, Corel(R) Paint Shop
Pro(R), Corel(R) Painter(TM), Corel DESIGNER(R), Corel(R) WordPerfect(R)
Office, WinZip(R) and iGrafx(R). In 2006, Corel acquired InterVideo, makers of
WinDVD(R) , and Ulead, a leading developer of video, imaging and DVD authoring
software. Designed to help people become more productive and express their
creative potential, Corel's software strives to set a higher standard for
value with full-featured products that are easier to learn and use. The
industry has responded with hundreds of awards recognizing Corel's leadership
in software innovation, design and value.

    Corel's products are sold in more than 75 countries through a
well-established network of international resellers, retailers, original
equipment manufacturers, online providers and Corel's global websites. The
Company's headquarters are located in Ottawa, Canada with major offices in the
United States, United Kingdom, Germany, China and Japan. Corel's stock is
traded on the NASDAQ under the symbol CREL and on the TSX under the symbol
CRE.

    (C) 2007 Corel Corporation. All rights reserved. Corel, CorelDRAW, Paint
Shop Pro, Snapfire, Painter, Corel DESIGNER, WordPerfect, WinZip, iGrafx, the
Corel logo, InterVideo, Ulead, WinDVD and WinDVD Creator are trademarks or
registered trademarks of Corel Corporation and/or its subsidiaries. All other
trademarks are the property of their respective holders.

    CRELF




For further information:

For further information: Press: Corel Corporation Catherine Hughes,
613-728-0826 x1659 catherine.hughes@corel.com or Investor Relations: The
Blueshirt Group Todd Friedman, 415-217-7722 todd@blueshirtgroup.com or Stacie
Bosinoff, 415-217-7722 stacie@blueshirtgroup.com

Organization Profile

COREL CORPORATION

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