Corel to spin off Linux arm

Canadian software vendor Corel is to spin off its Linux distribution arm to concentrate on its traditional applications business.

Canadian software vendor Corel is to spin off its Linux distribution arm to concentrate on its traditional applications business.

The firm, which produces the CorelDraw and WordPerfect software suites, said the move is part of a new corporate strategy it claims will help reposition it for long-term growth and profitability.

Derek Burney, Corel's chief executive, said the company was still committed to its Linux plans.

"To realise this vision and boost the value of our existing Linux equity for customers and shareholders, we are pursuing opportunities that would allow us to spin off the Linux distribution element of our Linux division with the intention of retaining an interest in the prospective new company," he said.

The vendor will continue to develop brand name applications for Linux, including WordPerfect, Office for Linux and CorelDraw for Linux.

Corel will also pursue opportunities related to Microsoft's .Net strategy. However, Burney said it was "not going to go into a head-to-head battle" with Microsoft.

As part of the strategy, Corel plans to focus on the English language development of WordPerfect and release a Mac version of CorelDraw in the summer.

Burney said he hoped the move will help Corel achieve an annual growth rate of at least 20 per cent over the next three years.

Clive Longbottom, service director at analyst Quocirca, believed Corel has made a big mistake in backing out of the Linux market. "Corel has done this the wrong way round. It should have kept hold of Linux and spun off its graphics side," he said.