Feeds

Restructuring costs drive Novell into the red

Profit restructured off P&L

Reducing security risks from open source software

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. ®

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 ran off to IBM
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
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
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
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.