Feeds

Shares slump as Novell posts loss

Linux investment to blame

  • alert
  • submit to reddit

The next step in data security

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

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.