Novell Q4 figures top Wall Street expectations
Revenue, profit up on Q3 1998, Q4 1997
Novell has announced Q4 profits of $42 million on revenues of $298 million. The profit translates to a 12c per share, 30 per cent up on the 9c a share Wall Street had anticipated. In the previous quarter, it recorded profits of $26.5 million on sales of $272 million. For the full fiscal year, Novell made $102 million (29c per share) on revenues of $1.08 billion. That contrasts with the loss of $78 million on sales of $1 billion recorded for fiscal 1997. During the quarter, revenue from directory-enabled servers, consisting of NetWare 4 and 5, reached $150 million, a 16 per cent increase on the Q4 1997 figure. Network infrastructure and application software accounted for $83 million, an increase of 30 per cent on the year-ago quarter. Directory-enabled applications, including ZENworks, ManageWise and GroupWise, represented 65 per cent of that revenue ($54 million), itself an increase of 49 per cent on Q4 1997. In terms of territories, US revenue totalled $179 million (up 23 per cent), EMEA $81 million (up nine per cent) and Asia Pacific $21 million (down 39 per cent). Canada and South America together accounted for revenues of $17 million (up nine per cent). "Our strategy is clearly working," said CEO Eric Scmidt. "Initial customer response to NetWare 5 and new Novell partnerships demonstrate that the market increasingly recognises that the directory is vital to managing information in an Internet world." That refers to the company's recent high-profile signings of supporters for its Novell Directory Services (NDS) technology, including Nortel, Lucent and, most recently, Cisco (see Cisco to add NDS support to CiscoAssure). ®
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