Corel sells NetWinder division, reports profit

Corel Corp. (COSFF) , which on Wednesday posted a profit for its fourth quarter, is preparing to divest the Netwinder division of its Corel Computer subsidiary. Corel Computer, developer of the NetWinder line of thin client desktops and servers running the Linux operating system, began shipping the products just a few weeks ago. However, the company has signed a letter of intent to transfer the product line to Hardware Computing Canada, Corel officials said. Hardware Computing Canada, an Ottawa-based value added reseller, is expected to take on Corel Computer and continue research and development of the NetWinder product line.Corel, in an agreement similar to a deal with GraphOn Corp. announced Jan. 4, will receive a 25 percent stake in Hardware Computing Canada, which is expected to go public later this year, Corel officials in Ottawa said. The agreement is expected to close by the end of Corel_s fiscal first quarter in 1999, pending approval.