Feeds

Novell profitable as revenue drops

Flat new year

The next step in data security

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.