Feeds

Novell profitable as revenue drops

Flat new year

Boost IT visibility and business value

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. ®

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
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.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.