Feeds

Profits and revenues drop at Novell

But results 'solid', firm says

Boost IT visibility and business value

Software firm Novell saw its profits slump in the first quarter of 2006, but the firm was adamant that it was pleased with its performance.

In a conference call discussing its first quarter figures, the firm described the results as "solid quarterly performance" and drew attention to growth in the identity management sector. It also commented that its Linux performance was "on track", a spokesman for the firm said.

Novell reported $274m in revenue, a year-on-year decline when compared with the $290m revenue the company took in 2005.

Net income in the first fiscal quarter 2006 was $2m or $0.00 per share. This compared to net income of $392m, or $0.90 per share, for the comparative quarter in 2005, this figure was boosted by a $448m net gain related to the settlement with Microsoft in that quarter.

Revenue in the open platforms solutions sector reached $56m, up from $14m a year ago, while Open Enterprise Server revenue reached $43m, other open platform products generated $13m. Systems, security and identity management revenue increased 20 per cent year on year.

"We are pleased with the continued improvement in the core business this quarter," said Jack Messman, chairman and CEO of Novell. "Our growth businesses of Linux, Identity and Resource Management are performing well, and we believe we will continue to see growth throughout the fiscal year."

Novell also took the opportunity on Thursday to issue a profit outlook for the second quarter. However, it fell short of analysts expectations, with Novell estimating revenue in the range of $272m to $282m. This will translate into earnings per share of $0.02 to $0.03; in contrast, analysts had been expecting $282m in revenue, and earnings per share of $0.04.

Novell employs some 125 people in Ireland, based in Sandyford. Its Irish arm carries out a number of functions on behalf of Novell EMEA, including software localisation, manufacturing, distribution, financial control, treasury and the sales operation for Irish customers and partners.

Copyright © 2006, ENN

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.