Feeds

Shares slump as Novell posts loss

Linux investment to blame

  • alert
  • submit to reddit

Reducing security risks from open source software

Shares in software company Novell slumped on Wednesday after the company posted a $16m loss in its second quarter results.

The loss was attributed to Novell's increased investment in repositioning the company as a Linux provider. After the announcement, shares in Novell fell seven per cent in after-market activity.

Despite foreign currency exchanges adding $8m in revenue, Novell failed to meet Wall Street expectations of $0.03 per share in quarterly profits on revenue of $301.9m. Reported revenues increased by $3m on last year's figures, reaching $297m.

The $16m loss translates into $0.04 loss per share, the same loss suffered in the second quarter of 2004. A year earlier, the company posted a $15m loss.

New license revenue also fell compared to the previous year's figures, reaching only $45.8m in comparison to $60.3m in 2004. Cash and short-term investments were $1.6bn as of 30 April 2005, compared with $1.7bin at 31 January 2005.

Excluding restructuring costs and other expenses, the company broke even with $1m net income. In the same period in 2004, the figures were a more robust $14m, or $0.03 per share.

Despite the disappointing results, Novell chairman Jack Messman remained upbeat. "Our results this quarter reflect the significant investments we are making to reposition Novell," he said. "I am confident that these investments will lead to increased customer acceptance of our solid solution offerings in the Linux and identity driven computing segments."

© ENN

Related articles

IBM and Red Hat to browbeat Sun Solaris users for free
OSS gains business ground in Europe
Linux versus XP on the desktop: Reg readers speak
Netline Open-Xchange - the next Firefox?
Red Hat Q4 sales soar
Deutsche Bahn dumps Intel, pumps SUSE onto IBM mainframe

Mobile application security vulnerability report

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
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
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
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
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.