Corel (CORL) has devised a plan to return to profitability, but investors don't seem to like what they're hearing.

The company's shares fell sharply and recently traded down 81 cents, or 21%, to $3.13 in

Nasdaq

activity.

In addition to reaching profitability by the third quarter, the plan also addresses measures for getting the company's revenue to grow at a compounded annual rate of at least 20% during the next three years.

The software maker, which is based in Ottawa, Ontario, said achieving those targets will be based on the goals set forth for each of the company's product lines, including a possible spinoff of part of its Linux division.

"Our blueprint for the future includes a solid foundation, a clear plan and space for growth through strategic investments and acquisitions. We are committed to success and we believe that this plan, properly executed, will result in Corel's return to profitability by the third quarter of this fiscal year," the company said in a statement.

The last time Corel turned a profit was the third quarter of fiscal 1999.