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Novell posts earnings just above lowered expectations

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CIOL Bureau
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PROVO: Novell Inc. on Tuesday announced its second-quarter results for this

fiscal, which were just above diminished expectations as the business management

software company struggled with sales force problems.

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Provo, Utah-based Novell Inc. said its net income fell to $31 million, or

nine cents a share on a diluted basis, for the second quarter ended April 30,

2000, from $38.7 million, or 11 cents a share, in the corresponding period last

year.

Excluding a one-time $35 million royalty from Caldera Inc., which contributed

seven cents a share to earnings, Novell's earnings were two cents a share. Wall

Street analysts had expected the company to post earnings of one cent a share.

Revenues fell to $302 million from $316 million. Novel warned on May 2 that

second-quarter profits would be half what Wall Street was expecting due to a

stumbling sales force, as well as stepped-up competition from Microsoft Corp.,

with its recent release of Windows 2000 and the surging popularity of the Linux

operating system.

At the time, Novell said it expected to report revenues of just over $300

million and earnings of about 8 cents a share. That included the $35 million

royalty payment from Caldera Systems, most of which relates to an antitrust

settlement between Caldera Systems and Microsoft Corp.

(C) Reuters Limited 2000.

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