For the third quarter ending 31 July, Novell reported sales of £121.5m, compared to the £118m for the same quarter last year.
The loss from operations for the third quarter was £5m, compared to a loss of £20m for the third quarter last year.
For the quarter Novell said sales from open source software based around Linux reached £11m - up 77% on the previous year.
"We are encouraged by our Linux performance and the market's continued enthusiasm for our desktop to datacentre strategy. In addition, we are pleased with our operating margin expansion and progress on our strategic initiatives," said Ron Hovsepian, president and CEO of Novell.
Novell has just signed a major Linux migration deal with 33 universities in Germany, which will support 560,000 students and thousands of staff.