Novell financials beat estimates again

Company reports strong growth in core business units

Novell Thursday reported net income of US$5.8 million for its fiscal 2008 second quarter pulling earnings up from a loss of $2.8 million in the same quarter last year.

The company said it showed healthy growth in its core business units around the Linux operating system, identity/access management software and systems management tools.

"Our business continues to gain momentum and is tracking according to plan," Ron Hovsepian, Novell's CEO said during an afternoon earnings call with financial analysts and media.

Novell, however, reported flat net revenue of US$236 million, which was just shy of 2 per cent growth when compared with the US$232 million in net revenue from the second quarter of 2007.

For the fifth quarter in a row, Novell's revenue numbers exceeded analyst estimates. First Call/Thompson Financial had expected US$233.5 million.

Novell also offered projections for its full year net revenue of US$940 million to $970 million. First Call/Thompson Financial estimates Novell will earn US$956 million in fiscal 2008, which ends October 31.

Hovsepian said the most exciting development during the quarter for the Linux business unit was a partnership with SAP, which will deliver its all-inclusive platform for small and midsize businesses exclusively on SUSE Linux.

He also said Novell has invoiced US$157 million or 65 per cent of the five-year US$240 million technology partnership agreement it signed with Microsoft in late 2006.

For the second fiscal quarter, Novell said product revenue from its open platform solutions group, which includes the SUSE Linux desktop and server, was US$30 million. All but $1 million of that figure was from Linux platform products, which represented a 31 per cent increase from the same quarter a year ago.

Revenue in the identity and security management group was US$31 million, a 13 per cent increase over fiscal second quarter 2007, and systems and resource management revenue was US$41 million, a 15 per cent year-over-year increase.

Novell did see a 1 per cent drop in its workgroup product revenue, which includes its GroupWise platform, to US$92 million.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about First CallLinuxMicrosoftNovellPlatform Solutions GroupSAP AustraliaSuse

Show Comments