Novell delays Q4 results due to SEC missives
Time to count beans
Novell is delaying the release of its fiscal fourth quarter results due to an ongoing accounting review by the US Securities and Exchange Commission.
The Linux firm was scheduled to release results today for the quarter ended October 31. But slow correspondence between Novell and an accountant's least favorite pen-pal has struck them with a bout of "an abundance of caution."
"We are confident of our accounting and are working diligently with the SEC to respond to their inquiries," said Dana Russell, CFO of Novell in a statement.
Novell said it first received a comment letter from the SEC on August 7, regarding its filings for the 2006 fiscal year and the second quarter 2007. They responded to the inquiry, and received a second letter a month later indicating the commission had reviewed it and was looking into — Novell reveals — "certain accounting matters."
Novell responded, and hasn't received a letter back. So, here we are.
They intend to release the fourth quarter and full-year 2007 earnings on completion of the SEC's review. Novell doesn't know when the process will be completed, but expects to file its 10-K form for the fiscal year before December 31.
Rumors are bubbling that Novell has begun layoffs of mid-level employees.
Although its Linux biz has been improving, Novell hasn't pleased investors who are putting the squeeze on the company to reach profitability a bit more briskly.®