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Novell does well in Q3

Schmidt triggers change

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Novell’s third quarter results have beaten analysts' expectations, benefiting from the delayed release of Microsoft’s NT 5.0. The company points to the cost cuts and new products as significant factors in the success. Net income for the period ending 31st July was $26.6 million, compared with a loss of $87.7 million the year before. The networking software company’s revenue rose to $27 million from $90.1 million, as chief exec Eric Schmidt shifted the company focus to software tools allowing some network management to take place over the Web. This shift takes the company out of direct competition with software giant Microsoft. “Basing their new product strategy around the Web is paying off,” said analysts at Preferred Capital Markets. Novell saw its revenues and profits slide last year as many clients defected to the NT system, which is cheaper than Netware. The updated version of Netware is available from Sept 20, but NT 5.0 is not expected to hit the shops until the middle of next year.

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