CEO Derek Burney showcased the new strategy at a seminar series in New York.
Deepwhite will focus on delivering products for content creation, enterprise process management, and technical graphics. The products will be based on the XML, or Extensible Markup Language, standard. XML is special programming language geared towards creating content for Web sites.
The announcement stems from the company's new focus on technical illustration, process management and XML content.
For 2002 Corel's strategy includes breaking the market up to better serve its customers, capturing new markets through strategic investment, and developing new products for emerging markets to keep pace with customer needs. A six segment approach unveiled before Christmas has since been combined into three -- home and small business, creative professionals and enterprise customers.
Corel is banking on new business segments and new products to stem the flow of red ink from its bottom line. Earlier in the month it posted a Q4 loss far wider than analysts estimates as revenues plunged 25 per cent.
For the current quarter, Q1 of 2002, Corel is expecting revenue up 20 to 29 per cent from Q1 of 2001 and much of the gain depends on the company's new marketing strategy.
Corel is also seeking to strengthen its move into the XML market through acquisitions, specifically a US$37 million deal to takeover Toronto's SoftQuad Software Ltd. The company's shareholders will vote March 14 on the Corel offer.
The maker of CorelDraw and WordPerfect posted a net loss of $10.7 million, or 14 cents a share for the fourth quarter, compared to a net loss of $8.6 million, or 12 cents a share, in the same period a year ago. Revenues slumped to $31.6 million from $40.4 million.
A poll of two analysts by Thomson Financial/First Call called for earnings of two cents per share.
For fiscal 2001 Corel posted a net loss was $7.3 million, or 10 cents a share, compared to net loss of $55.3 million, or $80 cents a share, in the previous year. Full year revenues fell to $134.3 million from $157.5 million in the previous year.
