Novell posts fall in sales and profit


Novell posts fall in sales and profit

Jenny Williams

Open source and Linux specialist Novell has announced a drop in sales and profits in the third quarter of its fiscal year, ending 31 July.

Compared with the same period last year, sales fell 8% to $199m (£129m) from $216m (£140m), a fall of 8%. Profit dropped 6% to $15.7m (£10m) from $16.7m (£10.8m) in 2009.

The SuSE Linux company revised its revenue guidance earlier this year from $205m to $210m to between $197m and $199m, citing customer uncertainty over the company's possible sale as the cause.

Novell said it was pleased with its consistent profitability levels despite reducing its outlook. "Our third-quarter revenue was below our initial expectations, which we believe is principally related to customer uncertainty associated with the Novell board of directors' ongoing review of various alternatives to enhance stockholder value," said Ron Hovsepian, president and CEO at Novell.

"The growth prospects of our target markets remain strong and our focus going forward is on returning to top-line growth via execution of our differentiated strategy, WorkloadIQ," he added.

Novell also reported a drop in profit and sales for the second quarter of 2010.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy