Feeds

Novell number up as Schmidt prepares recovery phase three

Aims to be broadest supplier of Web infrastructure products

  • alert
  • submit to reddit

Reducing security risks from open source software

Novell has turned in revenue of $345 million in its fourth quarter, up from $298 million in the year-earlier quarter, and $327 million in Q3. Net income was $74 million compared with $43 million a year earlier, and $49 million in Q3. Novell's FY ends on 31 October. For the fiscal year, Novell made $1.155 billion (up 30 per cent on FY98), with net income of $191 million (up 87 per cent on FY98). By product category in Q4, NetWare produced $176 million, directory-enabled applications reached $90 million (ZENworks, BorderManager and NDS for NT), while service, training and consultancy produced $50 million. Novell's older products contributed $29 million, or just 9 per cent of revenue. EMEA sales were up 29 per cent in Q4, Asia Pacific was up 31 per cent, and the US up 7 per cent. The Americas excluding the USA increased 32 per cent in the quarter. In the analysts call, CEO Eric Schmidt was clearly happy that "the strategy continues to work" and anticipated moving into phase three of Novell's recovery. Phase one was the turnaround, which Schmidt said was reached last September with the launch of NetWare 5, while phase two was growth based on its traditional business model. Phase three would include the exploitation of intranet services, which would include a mix of NDS growth, and eDirectory which was announced at Comdex, initially for NetWare, Solaris and NT4, but planned in the first half of next year for Linux, Tru64 and Windows 2000 ("when and if it shows up", Schmidt remarked enigmatically). Novell and Sun recently announced a joint marketing agreement for NDS eDirectory. Schmidt also foresaw a considerable growth in consultancy. Novell says it has now aligned its marketing and product development, with co-ordination responsibility under one person. The company had also bought back $403 million of its shares in the year, spent $114 million on venture capital projects, and had $895 million in cash. In addition, the company has $61 million in unrealised gains, compared with $64 million in unrealised losses last year. The Corel shares Novell acquired when it disposed of WordPerfect were evidently sold just too soon to gain from the considerable increase in Corel's share price, mostly related to its Linux announcement. Schmidt said that Novell's role is to be the broadest supplier of Web infrastructure products - what is being called internally "in the flow, in the Net services". A major revenue growth area in the coming years is expected to be network caching products, with Novell now having 12 OEM partners for its Internet Caching Service, including Compaq, Dell, Hitachi, IBM, Legend (China), NEC, and Toshiba. Novell also intends to enter new software product categories, particularly Internet-related areas that are still in an embryonic stage. These include e-commerce infrastructure, personal identity control, policy-based management, cache management, and public key security. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.