If you answered Apple Computer, you're close. However, the California-based computer maker recently eked out its second consecutive quarterly profit. And acting CEO Steve Jobs recently admitted he made a big mistake when he handed over control of Apple to former CEO John Sculley in the mid-eighties.

You'll find the answer if you look to Silicon Valley North and the sinking software developer commanded by Michael Cowpland. Ottawa's Corel Corp. has lost money more often than not since its acquisition of the WordPerfect software group two years ago.

Corel reported a titanic loss for 1997, more than $200 million (U.S.). A big chunk of the loss came from a WordPerfect write-off that ripped a long gash in Corel's financial ship of state. Yet even after the massive write-off, Cowpland maintained WordPerfect was a good acquisition.

That familiar sinking feeling continued in the first quarter this year, as Corel sales melted down to $45 million (U.S.), a whopping 44 per cent decline from $81 million a year earlier. Red ink washed over the boards, to the tune of a $21 million (U.S.) loss, nearly double the $11 million loss in 1997's first quarter.

Cowpland must wish he could click on a mouse and use the company's graphics software to change that sea of red ink to black.

Once allied with Microsoft to promote sales of Corel Draw, Corel now competes directly with the Redmond-based giant in sales of word processor, database and spreadsheet software.

Cowpland figured there was room for an alternative to Microsoft's Office, which dominates the software suite market. He positioned Corel's WordPerfect suite as the Pepsi to Microsoft's Coke. Yet the taste of Cowpland's Cola has left computer users gagging. It appears they prefer The Real Thing.

Corel's strategy of competing against Microsoft where it's strongest isn't working. That's clearly apparent to everyone except Captain Cowpland. He continues to stay the course, sailing full speed ahead in an ocean filled with icebergs.

Contrast this with Steve Jobs' actions at Apple Computer. After regaining control of the company last year, he arranged a detente with Microsoft in August.

After fighting Microsoft and its Windows software for many years, Jobs inked a deal for Apple to co-operate with the powerful software developer in setting standards for Internet software and the Java programming language.

Jobs even managed to persuade Bill Gates to pony up $150 million (U.S.) to invest in cash-strapped Apple.

Cowpland, on the other hand, initiates new projects even as Corel's losses mount. He acts like a drowning man who believes he can save himself only if he picks up more baggage.

When we met last summer, Cowpland said Corel's future lay in selling Network Computers (NCs), the low-cost devices that provide an alternative to traditional PCs.

Corel is a software developer, not a hardware manufacturer, but that didn't faze Cowpland. He confidently predicted that Corel would sell millions of the devices, with volume shipments starting in October. Corel is still fumbling with its NC and it has yet to ship in volume.

Apple appears to be taking its first steps on the comeback trail due, in part, to its board of directors. Apple's board takes an active hand in removing CEOs who aren't delivering adequate financial performance. Jobs replaced former CEO Gil Amelio, who wasn't up to making the tough cost-cutting decisions required at Apple.

Corel's board, in contrast, appears to be asleep on its watch. The company's stock price has tanked, losing more than 80 per cent of its value since late 1995. Yet Cowpland is as firmly entrenched as a barnacle on the ship Corel.

Some Corel shareholders are unhappy. A class action lawsuit launched in February alleges that Corel and certain corporate officers issued false and misleading financial statements for the first three quarters of 1997, inflating reported revenue and earnings. According to the suit, Corel insiders were able to sell thousands of shares they owned at artificially inflated prices.

To give the man credit, Cowpland has single-handedly managed to turn around the legendary Canadian inferiority complex when it comes to things high-tech. He's built the biggest, baddest, software company basket case, bar none. CW