05.29.07

Gemini version available ♊︎

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 in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

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.

DecorWhat Else is New


  1. Links 08/08/2022: Rescuezilla 2.4 and GUADEC Notes

    Links for the day



  2. IRC Proceedings: Sunday, August 07, 2022

    IRC logs for Sunday, August 07, 2022



  3. Techrights in the Next Ten Years

    An outlook for Techrights and topics it will focus on, seeing that the nature of threats is evolving



  4. Firefox Has DRM Even if You Turn off DRM

    Guest post by Ryan, reprinted with permission



  5. Estonia Adopting GNU/Linux Fast Since Russia Invaded Ukraine

    Windows has back doors; Estonia seems wise enough to move away from it, more so after Russian hostility



  6. In These Censorious Times...

    The World Wide Web has rapidly become a platform of censorship (not just in places like China and Russia) and we're extending to protocols that make censorship very difficult, sometimes infeasible



  7. Links 07/08/2022: SystemRescue 9.04 Out, Debian Officially Celebrates Censorship

    Links for the day



  8. Links 06/08/2022: Five Years of Fosstodo and Arti 0.6.0

    Links for the day



  9. IRC Proceedings: Saturday, August 06, 2022

    IRC logs for Saturday, August 06, 2022



  10. Links 06/08/2022: 4.3.2 EasyOS and NetBSD 9.3

    Links for the day



  11. GNU/Linux Share on Desktops and Laptops Relatively High in Claimed Territories of PRC (China)

    When it comes to desktops and laptops, GNU/Linux is measured at 4% in Taiwan this month and 5% in Hong Kong last month (4% in Macao; about 3% in Tibet)



  12. Links 06/08/2022: New in KDE and New Games

    Links for the day



  13. As Lennart Moves to His 'Mother Ship' (Microsoft), Will Devuan Become the 'New Debian'?

    There are signs that more developers are fatigued or fed up with systemd; we too have begun moving our sites away from systemd



  14. IRC Proceedings: Friday, August 05, 2022

    IRC logs for Friday, August 05, 2022



  15. In Africa, Android is More Than Three Times Bigger Than Microsoft Windows

    Now that Microsoft is starting to block Linux from booting on new laptops it’s important to remember that the “consumer” does not actually choose Windows; Microsoft is trying to forcibly impose Windows on unwanting computer users



  16. LinuxToday (or Linux Today) Shows Signs of Agony

    The Web site LinuxToday.com is pushing webspam instead of news picks; it also sells data about visitors (the typical “We value your privacy” lie), so it seems like “monetisation” tactics have taken precedence/priority over readers (or what’s left of them anyway; the webspam inevitably drives more of them away)



  17. Links 05/08/2022: GNUnet 0.17.3 and GNU Binutils 2.39

    Links for the day



  18. Links 05/08/2022: Mageia 9 Wants Artwork

    Links for the day



  19. [Meme] Criminals Have Feelings Too...

    We’ve learned today that speaking to colleagues about the EPO‘s corruption is regarded as a privacy problem by those who engage in this corruption



  20. [Meme] Dignity of Criminals

    Benoît Battistelli and António Campinos have turned the EPO into s**t; two men, one crêpe



  21. António Campinos Once Again Failing to Obey Court Orders, Making Up Ludicrous Excuses for Non-Compliance

    The absurdity of this situation is bare and completely naked for all to see, as once again the EPO refuses to obey very explicit, unequivocal court orders, which are nearly a decade overdue. Today's EPO seems to have been taken over by crime lords, or an embodiment of nepotism brought to us by the Frenchman Campinos and his enablers from Alicante.



  22. Recruitment Potential at the EPO Has Never Been Worse

    The tyrants who have taken the reins at the EPO want obedient robots, not human beings who are inclined to obey the law. Therefore, there seems to be an effort underway to drive out well-educated, highly-qualified, conscientious, experienced and charismatic workers who can stand in the way of profoundly unlawful strategies.



  23. Tux Machines is Now on Gemini and Techrights' Gemini Capsule Restored After Outage That Killed the Whole System (Again)

    We're moving to lighter and simpler systems that are easier to maintain (Alpine, Gemini, static pages); we've meanwhile faced a major obstacle due to the whole neighbourhood here losing power



  24. Asia Has Already Left Windows Behind

    Android (Linux-powered) is leaving Windows in the gutter; it’s hardly shocking that the criminals who run Microsoft try to prevent Linux from even booting on new laptops



  25. IRC Proceedings: Thursday, August 04, 2022

    IRC logs for Thursday, August 04, 2022



  26. Links 05/08/2022: KIO Admin, GitLab's Betrayal

    Links for the day



  27. Links 04/08/2022: Devuan-Based Peppermint OS, Hyperbola 0.4.1

    Links for the day



  28. Links 04/08/2022: Release Candidate of Krita 5.1.0 and Ubuntu Unity 22.04.1

    Links for the day



  29. Links 04/08/2022: Steam Deck in Asia

    Links for the day



  30. IRC Proceedings: Wednesday, August 03, 2022

    IRC logs for Wednesday, August 03, 2022


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

Recent Posts