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Novell Ain't No Red Hat, Even with Microsoft

Novell Has $1.4 Billion In the Bank, Down from $1.8 Billion Year-Over-Year, Due Primarily to the Acquisition of PlateSpin
By Maureen O'Gara
Article Rating:
May 30, 2008 12:15 PM EDT
Reads:
 2,545

Novell made $5.87 million, or two cents a share, in its second fiscal quarter ended April 30 on flat revenues of $235.7 million, up only ~$3 million. A year ago it lost $2.9 million, down a penny.

Legal and R&D cost it $4.5 million.

On a non-GAAP basis, income from operations for the second fiscal quarter 2008 was $16 million versus $9 million last year.

The company’s product revenue from Open Platform Solutions, almost all of it Linux, came to $30 million, up 31%.

Service revenues were down 19% to $41.1 million.

Product revenue from Identity and Security Management was $31 million of which Identity and Access Management was $27 million, up 13% year-over-year. Product revenue from Systems and Resource Management was $41 million, up 15% year-over-year. Workgroup product revenue of $92 million was down 1%.

Novell has $1.4 billion in the bank, down from $1.8 billion year-over-year, due primarily to the acquisition of PlateSpin and the repurchase of a portion of its debentures.

Total deferred revenue was $702 million, up from $700 million. Cash flow from operations was a negative $18 million versus a negative cash flow from operations of $29 million last year.

Novell thinks revenues for all of 2008 will be between $940 million and $970 million with an operating margin of between 7% and 9%.

Published May 30, 2008 – Reads 2,545
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More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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