Q208 profit of US$2m for Novell

30 May 2008

Novell’s financial results for Q208 showed new revenue of US$236m, up US$4m over the same quarter a year ago.

Income from operations for Q208 was US$2m, compared to a loss from operations of US$12m for the second fiscal quarter of 2007.

Income from continuing operations in the second fiscal quarter 2008 was US$6m, or US$0.02 per share. This compares to a loss from continuing operations of US$1m for the second fiscal quarter of 2007.

Foreign currency exchange rates favourably impacted revenue by US$8m, unfavourably impacted operating expenses by US$9m and negatively impacted income from operations by US$1m year-over-year.

Novell’s Open Platform Solutions generated US$30m of product revenue during the quarter, of which US$29m was from Linux Platform Products, up 31pc year-over-year.

“Our business continues to gain momentum, with strong product revenue growth in Linux, identity and systems and resource management,” said Ron Hovsepian, president and CEO of Novell. “We are encouraged by our results and remain confident we will achieve our financial objectives for fiscal 2008.”

Cash, cash equivalents and short-term investments were US$1.4bn at 30 April, 2008, down from US$1.8bn in the year-ago quarter, primarily due to the acquisition of PlateSpin and the repurchase of a portion of the company’s debentures.

For the full fiscal year 2008, Novell expects net revenues of between US$940m and US$970m. Non-GAAP operating margin is expected to be between 7pc and 9pc, excluding all acquisition-related intangible asset amortization.

By Niall Byrne