Feeds

Novell profitable as revenue drops

Flat new year

Top 5 reasons to deploy VMware with Tegile

Novel expects a drop in revenue for its current, fourth quarter and is predicting a flat 12 months, despite rising Linux sales and a Microsoft sales boost.

Announcing preliminary fourth quarter results, Novell expects to swing from a $6m loss to a $25m profit on net revenue that dropped 15 per cent to $245m. The drop was bigger than expected by analysts, who'd anticipated $251.5m net revenue, according to Reuters.

Novell expects to end the year on $967m revenue, down from $1.039m.

Looking ahead, Novell forecasts similar gravity friendly numbers for 2007. It expects revenue between $945m and $975m compared to between $949m and $1.05bn expected by analysts.

This comes as Novell claimed 32 per cent growth in its Linux revenues to $13m during the fourth quarter. Next year, Novell apparently expects to realise $20m in revenue from the multi-year deal reached with Microsoft and signed last month.

Under that agreement, Microsoft will re-sell 70,000 SuSE Enterprise Linux Server coupons to the total value of $240m. According to Novell, the $240m will be recorded in cash and deferred revenue, with revenue recorded as sales are made.

Novell's chief executive Ron Hovespian admitted to some "ambitious" joint goals with Microsoft, saying the target is for 150 customers and 20,000 sold certificates in January.

Elsewhere, Novell's business is flat or in decline. Revenue from identity and access management grew three percent to $24m during the quarter, while NetWare and Open Enterprise Server fell 25 per cent. ®

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.