Pointing to continued demand for its NetWare 5 server and directory-related software, Novell has reported second-quarter earnings of $US39 million, more than doubling earnings of $19 million from the same quarter last fiscal year.
Earnings on a diluted basis were 11 cents per share, one cent more than analysts polled by First Call had expected the company to report for the quarter ended April 30. The company reported five cents per share for the year-earlier period.
Revenue for the quarter was $316 million, a 20 per cent increase over the $262 million reported for the second quarter last year.
Locally, the Australian operations recorded growth of 35 per cent on the same period last year, Cliff Smith, managing director of Novell Australasia, said.
"This growth was spread across all categories, including shrink-wrap and corporate licence software, as well as services," Smith said.
"Our experience bears out the results of recent research by IDC that shows that NetWare remains the most often used platform for file/print services, directory services and communications, due to its perceived greater strength and reliability than Windows NT. They also found that organisations were reluctant to abandon existing investments in computing solutions, and we believe that this will continue to provide strong growth opportunities for Novell through the adoption of NDS as a basis for cross-platform network management and integration," he said.
Eric Schmidt, Novell's chairman and chief executive officer said the increased earnings were due in large part to sales of Netware 5, which exceeded expectations, Revenue from directory-enabled NetWare server software totalled $169 million in the quarter, up 41 per cent from the second quarter last year. Directory-enabled applications grew 30 per cent to $73 million. Service, training and consulting revenue was up 47 per cent to $44 million. Older, pre-directory products declined 47 per cent to $30 million.