Novell made a loss last year despite increasing sales for its Linux-based products.
For the full year ending 31 October, Novell posted a £13m loss from sales of £466m. This compared with a small £2m profit in 2006 from sales of £460m.
In the fourth quarter of the year, Novell said sales from open platform systems were £11.5m, with £11m coming from Linux-driven systems. This was up 69% on the same quarter last year.
The overall group loss was partly down to Novell selling a Swiss consulting business in the fourth quarter, and its positive results being stripped out of the bottom line, but Novell would have still have made a loss without this transaction.
"We are pleased with our overall results for 2007. While undergoing transformational change, we grew revenue and exceeded our operating targets. We are on the right path to long-term, sustainable profitability," said Ron Hovsepian, president and CEO of Novell.