Corel Corporation (Corel) reported weak 2Q 09 results with top-line and operating performance standing below our expectations. Going forward we remain cautious regarding Corel's business growth on account of prevailing macro-economic concerns and weak economic indicators suggesting delays in the US economic recovery. However, Corel’s restructuring initiatives may help the company restore growth in profitability in FY 2009. Hence although current levels do not support…

Corel Corporation's (Corel) NASDAQ common stock price has appreciated significantly since our 1Q 09 update report, supported by the recent improvement in global equity markets. Although revenue visibility continues to be low on account of the slowdown in economic conditions, we remain optimistic regarding the company's cost reduction initiatives materializing into improved profitability going forward. In addition, considering improved investor…

Corel has reported strong growth in emerging markets such as Eastern Europe, China and India during FY 2008. Emerging markets remain a part of the company’s key strategic growth drivers. Continued innovations and upgrades by Corel will enhance its top-line over the medium-to-long term. However, in the near term, we expect the impact of the economic slowdown to be visible in revenue numbers. To mitigate this impact on profitability…