EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

05.29.07

Novell is Operating at a Loss (Updated)

Posted in Finance, Marketing, NetWare, Novell at 9:08 pm by Dr. Roy Schestowitz

HSBC, which picked SUSE Linux a few months ago, has just reported great growth (in terms of online activity at least), but the same cannot be said about Novell. Someone has wrestled with the numbers and came to the conclusion that “Novell’s First Quarter Goes into the Red”.

In the first quarter of fiscal 2007 ended January 31, Novell said that software license sales amounted to $38.5 million, down 9 percent, while sales of maintenance contracts, software subscriptions (which are really for support, not for the open source software itself), and other services came to $191.2 million, down 4 percent. Total sales for the quarter came in at $229.6 million, down 5 percent. While Novell has kept a tight rein on costs relating to the products themselves, the company has increased spending on sales, marketing, development, and general costs; it has also booked a $7.4 million restructuring charge in the quarter and written off $10.8 million in assets. These factors pushed Novell to a $31.3 million operating loss. Because Novell has over $1 billion in cash in the bank and $790 million in short-term investments, it was able to post a $20.7 million gain in investments and it also sold some venture capital funds for another $3.6 million. When all the math was done and the taxes paid, that worked out to a $19.9 million net loss, or about 6 cents per share, compared to a net profit of $1.9 million in the year ago quarter, or 1 cent a share.

Update: The Inquirer has more to say about the figures (slight corrections to INQ banter language).

The thousands of pins stuck into the effigy of Novell by Open Sorcerers seems to have had a dire effect on the company’s bottom line.

The Open Source movement threw up its collective hands in disgust when Novell signed a pact with Microsoft promising not to sue each other over software patents.

Now it seems that Novell’s software license sales have dropped by nine per cent and the company has started to lose cash. Sales of maintenance contracts, software subscriptions are down by four per cent and total sales are down five per cent.

Boycotts seem to have become effective owing to the voices of the Internet.

Motley Fool (fool.com), which has always seemed like a strong pro-Microsoft financial Web site, has its facts skewed.

Novell has shown some real commitment to the ideals of the open-source community lately.

Who are they kidding?

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

2 Comments

  1. shane said,

    May 30, 2007 at 8:06 am

    Gravatar

    early on after the deal, I had toyed with some of Novell’s projected numbers for the quarter and it appeared that Novell was in the Red without the MS deal. Now, it appears that they are in the Red even with it (sorry, Francis).

    Novell already has received all of the money for the 5 years of subscriptions, if they have to rework the deal and MS gets out of the coupon business (as Novell admits is a possibility), will Novell need to return the $? How much worse would they be hurting then, with no sales?

  2. b3timmons said,

    May 30, 2007 at 10:53 am

    Gravatar

    To Motley Fool’s credit, they do some disclosure, such as this bit from an article earlier this month:

    “Microsoft is a Motley Fool Inside Value pick”

    However, that’s the trivial part. Unfortunately, there is much going on behind the scenes, thanks to Microsoft’s bit of media control. E.g., MSN carrying Motley Fool under a new deal earlier this month: “Microsoft Seals Exclusive Deal to Deliver The Motley Fool CAPS Stock Rating on MSN Money”.

    As you say, Motley Fool is dripping with Microsoft bias.

What Else is New


  1. Links 22/4/2014: More GNU/Linux Gains, Syria Updates

    Links for the day



  2. Links 21/4/2014: New Games for GNU/Linux, Some NatSec Politics

    Links for the day



  3. Site Focus for The Remainder of the Year

    What we plan for the rest of 2014 and why



  4. Links 20/4/2014: EFF FOSS, Easter Drone Strikes, Copyright Industry Fear of Google

    Links for the day



  5. Links 19/4/2014: Slow Easter News Day

    Links for the day



  6. Links 18/4/2014: New KDE, Kubuntu, and More

    Links for the day



  7. Some Perspective on Heartbleed®

    Our views on the whole Heartbleed® bonanza, which seems like partly a PR stunt (for multiple stakeholders)



  8. Microsoft is Leaving Windows -- Including Vista 8.1 -- Vulnerable to Non-Government Crackers, Not Only to NSA

    Microsoft makes it ever more evident that securing users of Windows is not at all a priority, and perhaps not even a desire



  9. Links 17/4/2014: Android RDP, New Ubuntu, RHEL 7 Milestone

    Links for the day



  10. Racing to 1984: Mass Surveillance, Cracking, 'Targeted' Assassinations, and Illegal Torture

    Links for the day



  11. More Microsoft Subsidies to Patent Troll Intellectual Ventures

    Microsoft hands money to Bill Gates' close friend who is the world's largest patent troll



  12. Aiding Microsoft Under the Disguise of 'Pro-FOSS'

    Not everything which is FOSS necessary becomes, by virtue of existence, a positive contribution, as we are constantly reminded by projects that help proprietary software and/or restrictions get a strong grip on FOSS



  13. Links 16/4/2014: Red Hat PR, Ubuntu LTS Imminent

    Links for the day



  14. Links 15/4/2014: Lots of PCLinuxOS Releases, Ukraine Updates

    Links for the day



  15. Apple and Microsoft Actively Lobbying Against Patent Reform in the US

    Apple and Microsoft are reportedly intervening/interfering with US law in order to ensure that the law is Free/libre software-hostile



  16. Lawsuit by Microsoft Shareholder Targets Fine for Crimes Rather Than the Crimes Themselves

    A new lawsuit by a Microsoft shareholder shows everything that's wrong with today's model of accountability, where those who are responsible for crimes are accused of not avoiding fines rather than committing the crimes



  17. Public Institutions Must Dump PRISM-Associated Software

    Another reminder that taxpayers-subsidised services should refuse, as a matter of principle, to pay anything for -- let alone deploy -- proprietary software with back doors



  18. GNU/Linux News: The Opportunities Amid XP EOL

    Links for the day



  19. Microsoft Gets Its Money's Worth From Xamarin: PlayStation 4 Now Polluted by Microsoft

    The Trojan horse of Microsoft, Xamarin, is pushing .NET into Microsoft's console competitor



  20. After Brendan Eich Comes Chris Beard

    Having removed Brendan Eich using bullying and blackmail tactics, his foes inside Mozilla achieved too little as we have yet another man (coming from inside Mozilla) acting as CEO



  21. Healthcare News: Free Software in Health, Humanitarian Causes

    Links for the day



  22. Links 14/4/2014: MakuluLinux, Many Games, More Privacy News and Pulitzer Prize for NSA Revelations

    Links for the day



  23. TechBytes Episode 87: Catching up With Surveillance (NSA, GCHQ et al.)

    The first audio episode in a very long time covers some of the latest happenings when it comes to privacy and, contrariwise, mass surveillance



  24. Server News: KVM, ElasticHosts, Other GNU/Linux Items, and Open Network Linux

    Links for the day



  25. Hardware News: Freedom, Modding, Hackability on the Rise

    Links for the day



  26. Distributions News: GNU/Linux Distros

    Links for the day



  27. GNOME News: Financial Issues, Mutter-Wayland, West Coast Summit, Community Participation

    Links for the day



  28. KDE News: Kubuntu at the Centre Again KDE Applications Updated

    Links for the day



  29. Techrights Rising

    Effective immediately, Techrights will do what it takes to bring back old volume and pace of publishing



  30. Links: Surveillance, Intervention, Torture and Drones

    Links for the day


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts