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

Maximizing your infrastructure through virtualization

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
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
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.
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.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.