Feeds

Restructuring costs drive Novell into the red

Profit restructured off P&L

New hybrid storage solutions

Novell has swung from profit of $15m last year to record a fourth quarter loss of $5m, despite an upsurge in revenue. For the quarter ending 31 October, Novell reported revenue of $320m, compared to revenue of $301m for Q42004. Excluding restructuring charges of $38m, the enterprise software supplier said it would have earned $33m.

The enterprise software maker's revenue came out ahead of analyst's expectations of $300m. Last month Novell announced plans to axe 600 jobs and accelerated plans to spin out its consulting business in an attempt to cut costs and return to growth. Novell plans to focus its efforts in the Linux and Identity markets.

During Q4 2005, Novell made Linux platform sales of $61m, up 418 per cent from Q4 2004. Linux platform revenue included $46m from sales of Open Enterprise Server and $15m of revenue from other Linux products and services. For the full fiscal year 2005, Novell reported Linux platform revenue of $148m, up 278 per cent from FY2004.

Novell also increased sales of identity management software by 35 per cent in Q4 2005, bringing in $84m. Identity-driven computing revenue for the FY2005 totaled $258m, an increase of 14 per cent year over year.

"We are very pleased with the strong finish we had in this fiscal year," said Jack Messman, Novell chairman and chief exec.

For the year as a whole, Novell made profits of $378m on sales of $1.2bn. Novell's figures were buoyed by the cash injection from a $448m net legal settlement with Microsoft.

Looking ahead, Novell expects to record net revenues for Q12006 of between $260m and $270m. ®

New hybrid storage solutions

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
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
EMC has nothing to say on VMware sale plan
Rumour and counter-rumour swirl around Wall Street
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.