Novell has posted bigger losses for the second quarter as it saw licence revenues for its software fall.
Losses increased to $15.8m (£8.54m) compared with $15.4m for the same period last year, although the company benefited from increased revenues from its Linux-based systems.
Total sales rose only 1% to $297.1m. Software licence revenue fell from $60.3m to $45.8m.
During the second quarter Novell generated $8m from subscriptions for its SuSE Linux Enterprise Server, representing 19,000 units.
Novell chief executive officer Jack Messman said, “Our results reflect the significant investments we are making to reposition Novell.”
Messman said the investments would drive the company towards greater sales in Linux and identity management offerings, instead of having to rely on its ageing Netware server software for revenue.