On Monday, Corel posted a wider than expected loss in its first quarter, losing $12.4m (£7.6m), or 19 cents (12p) a share, on sales of $44.1m (£27m). First Call's consensus expected the Canadian software developer to lose 16 cents (10p) a share in the quarter. Its shares closed off 1/2 to 13 3/8 ahead of the earnings report. The $44.1m (£27m) in sales marks a nine percent improvement from the same quarter a year ago, when it lost $14.6m (£9m), or 24 cents (15p) a share, on sales of $40.3m (£24.9m). Company officials said it expects results in the next two quarters to mirror the first quarter financials, based on its revenue and cost structures. "With an improved cash position since Q4 1999, and profitable investments, Corel is positioned to fund future growth," said chief executive Michael Cowpland in a prepared release. Last quarter, Corel met analysts' reduced estimates after issuing a profit warning. At the time, Cowpland attributed the shortfall to problems with shipments of its Windows software and maintained that the company should be given a valuation similar to Linux star Red Hat. Corel's version of the Linux OS generated $3.2m (£1.9m) in fourth quarter sales. "It should now be clear to everyone that Corel is financially among the top Linux players," Cowpland said last quarter. However, in its press release, Corel didn't bother to breakdown the amount of sales its Linux software generated in the quarter. Making matters worse, Corel's chief financial officer, Michael O'Reilly, resigned on 15 December. Corel shares stormed up to a 52-week high of 44 1/2 in December when Linux-related stocks were making huge gains. Last March, the stock was trading at $2 (£1.24) a share. Both analysts following the stock maintain either a "hold" or "sell" recommendation. First Call consensus predicts Corel will earn 6 cents (4p) a share in the fiscal year. What do you think? Tell the Mailroom and read what others have to say. See techTrader for more technology investment news, plus quotes and research. See Inter@ctive Investor for US tech investor news.