Corel expects to report a net income of up to $0.5 million for the first-quarter 2001, ended February 28.

Corel expects its first-quarter revenues to be approximately $32.5 million, which is lower than the company's revised internal expectations. However, in
January the company didn't expected to return to profitability until the third-quarter of 2001.

Cash turnaround The expected results compare with a net loss of $12.4 million on revenues of $44.1 million for the same period last year.

Derek Burney, president and CEO of Corel, said: "We are pleased with these early signs of success with our new strategic direction for the company. By returning the company to profitability earlier than anticipated, we are executing ahead of schedule one of the major milestones of our new growth strategy.

"While our revenues were lower than we expected, our positive operating cash flow and earnings make it clear our hard work is paying off."

The CEO warned that the company is faced with a challenge predicting its fortunes over the coming months as it's faced with economic uncertainty in the US markets.