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

09.05.07

Dana Blankenhorn: Novell is ‘Massaging’ Its Financial Figures

Posted in Finance, GNU/Linux, Novell, Red Hat, Ubuntu at 2:35 am by Dr. Roy Schestowitz

As you probably know, Novell has been in a poor financial state in recent years and it also missed Wall Street’s expectations earlier this year, not to mention its risk of being delisted — a risk that it eventually escaped. There was something very fishy about Novell’s latest financial report and we are fortunate enough to find people who look at the numbers more closely. Here is what it’s all about:

Novell is also good at PR. It has been talking about desktop Linux being just around the corner for years, without delivering anything worthwhile. No wonder I get such a hit to the numbers here for mentioning Ubuntu.

This continuing game of massaging numbers and expectations, rather than delivering solid performance or solid software, hurts the whole open source market.

Having covered Novell for two decades, I’m frankly tired of it. Wall Street, not so much. As long as there is action Wall Street is happy.

There is no room for opinion here, so there’s no need to say “hats off to Dana” or “you ignorant blogger”. What Dana is trying to say seems to align pretty well with what we’ve been seeing in recent months. In fact, given Novell’s inability to compete with Red Hat (it was only left further behind after its deal with Microsoft), any optimistic claims from the financial department are highly suspicious.

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

5 Comments

  1. Alec Baldwin said,

    September 5, 2007 at 3:56 am

    Gravatar

    Clueless drivel. If you or Dana had any idea what you were talking about, I’d listen harder. But it’s clear from your posts that you simply have no idea what has been going on at Novell, and what is going on at Novell.

    FUD

  2. Roy Schestowitz said,

    September 5, 2007 at 4:04 am

    Gravatar

    Alec Baldwin, your past comments here were a case of trolling, which makes your counter argument weak. If I recall correctly, readers suspected that you were a shill.

  3. Alec Baldwin said,

    September 5, 2007 at 8:54 am

    Gravatar

    Just goes to show how wrong some of your readers can be then doesn’t it? A shill, I am not.

    I enjoy reading commentary about Novell and other IT vendors, but I tire of fud-spreading, self-regarding, self-publicising people like you.

    From reading [proper] analysts reports of Novell’s Q3 performance, they have delivered a slightly stronger than anticipated quarter. Haven’t set the world on fire, but didn’t set an expectation that they would, or that they wouldn’t. That’s pretty much it, is Dana annoyed that Novell delivered a slightly stronger than anticipated quarter? Apparently so. And then asserts, that it’s all smoke and mirrors, it’s “fishy”. Companies in a post-Enron world, don’t post fishy numbers. They are just the numbers.

    Saying something like “very fishy”, without any substance to back that up, is just FUD. You then go on – “There is no room for opinion here…” Of course there is… that’s just a plain stupid thing to say. Doesn’t the make up of the numbers warrant questions like: Is this a good result for Novell, or a bad result?

    “Given Novell’s inability to compete with Red Hat…” You defeat yourself at every turn. Do you have any idea which customers have, and are planning to adopt Suse Linux as a replacment for Red Hat? Clearly not.

    Tiresome, ill-informed posts like this just serve to remind me to review my SPAM filters…

  4. Roy Schestowitz said,

    September 5, 2007 at 9:09 am

    Gravatar

    Thank you for at least referring to substance rather than engaging in personal attacks this time.

    Let’s remember that Novell reported a loss (narrower than expected though) and also remember that surveys show Novell staying flat (according to one company’s figures) while Red Hat continues to rise sharply.

    Novell cannot grow its Linux business as quickly as its ‘legacy’ income declines. It has money to spend (roughly a billion dollars) and it is willing to spend it on acquisitions, not buybacks, based on Ron Hovsepian’s relatively recent interview. Based on that same interview, Novell has cut down its R&D budget. So, are we seeing a growing company? for all I can tell, Novell is the next Unisys. What’s worse, this dinosaur liaised with Microsoft to guarantee its imminent extinction. Until then, Novell will be nothing but an abused tool for Microsoft to milk.

  5. Ian said,

    September 5, 2007 at 12:00 pm

    Gravatar

    I can’t speak to the financial massaging. However he got a few things wrong. Novell does not have good PR. Second, what’s “without delivering anything worthwhile” about? SLED 10 is much better than Suse Pro 9.3. SLED is considered by some to be the most polished distro available. Is it really? Well, that’s a matter of opinion of course. And finally, Novell doesn’t deliver quality software? What’s he basing that on? What metrics does he use?

    My point is, there’s plenty to rip Novell for, but throwing shit against a wall and hoping something sticks isn’t good “reporting” or blogging in this case.

What Else is New


  1. Can Trade Secrets Litigation Replace (in Part) Patent Litigation?

    Seeing DTSA as an opportunity to combat their competition, more firms now choose to file trade secret cases whereas patent cases continue their sharp decline



  2. Links 22/7/2018: Neptune 5.4, NetBSD 8.0

    Links for the day



  3. The EPO (European Patent Office) Under António Campinos is Just Another Battistelli EPO; Still UPC and Software Patents Lobbying

    Campinos has done pretty much nothing but a single blog post since taking Office; it makes one wonder what he's doing all day and whether he ever intends to tackle all the abuses that compelled the Council to replace Battistelli



  4. Cisco v Arista Networks is a Stain on the Reputation of the US International Trade Commission (ITC) and It's Beginning to Recognise This

    Cisco is leveraging software patents which PTAB deemed to be invalid against a much smaller firm (revenue ~30 times smaller), demanding an embargo and bypassing the ordinary routes of justice by turning to the ITC



  5. Openet Has Been Intimidated by Amdocs Using Another Patent Infringement Lawsuit

    Amdocs is still engaging in legal intimidation and litigious bullying against its much smaller rivals/competitors; Openet is the latest reminder of it, having paid an undisclosed amount of money to end the dispute



  6. Federal Circuit Judges Moore, Dyk and Reyna Tell Allergan That It is Not Above the Law

    Allergan and a Native American tribe have lost their ridiculous case; after swapping tens of millions of dollars in pursuit of immunity for patents they've lost again (in what's likely their last resort/appeal); expect the patent microcosm to attempt to distract from it (like they did Oil States)



  7. Links 20/7/2018: MusicBrainz is Back, Microsoft Pushing .NET Through Canonical

    Links for the day



  8. Some US Patents' Quality is So Low That There's a Garden Clearance/Fire Sale

    Rather than shoot worthless patents into orbit where they belong the Allied Security Trust (AST), collector of dubious patents, will try to sell them to gullible opportunists and patent trolls (even if the said patents would likely perish in courts)



  9. When Amplifying the Message of 'Global Innovation Index 2018' IP Watch Sounds Like WIPO and IP Watchdog (Watchtroll)

    In addition to senatorial efforts and misleading debates about patents, we now contend with something called “Global Innovation Index 2018," whose purpose appears to be similar to the debunked Chamber of Commerce's rankings (quantifying everything in terms of patents)



  10. Erosion of Patent Justice in Europe With Kangaroo Courts and Low-Quality European Patents

    The problematic combination of plaintiff-friendly courts (favouring the accuser, just like in Eastern Texas) and low-quality patents that should never have been granted



  11. Mafia Tactics in Team UPC and Battistelli's Circle

    Mafia-like behaviour at the EPO and the team responsible for the Unified Patent Court (UPC); appointments of loyal friends and family members have become common (nepotism and exchange of favours), as have threats made towards critics, authorities, and the press



  12. Australia Says No to Software Patents

    Rokt is now fighting the Australian patent office over its decision to reject software patents; Shelston IP, an Australian patent law firm (originally from Melbourne), already meddles a great deal in such policies/decisions, hoping to overturn them



  13. Links 19/7/2018: Krita 4.1.1, Qt Creator 4.7.0, and Microsoft-Led Lobby Against Android in EU

    Links for the day



  14. IAM is Pushing SEPs/FRAND Agenda for Patent Trolls and Monopolists That Fund IAM

    The front group of patent trolls, IAM, sets up an echo chamber-type event, preceded by all the usual pro-FRAND propaganda



  15. “Trade Secrets” Litigation Rising in the Wake of TC Heartland, Alice, Oil States and Other Patent-Minimising Decisions

    Litigation strategies are evolving in the wake of top-level decisions that rule out software patents, restrict venue shifting, and facilitate invalidation of patents even outside the courtroom



  16. The EPO -- Like the Unified Patent Court (UPC) and Unitary Patent System -- is an Untenable Mess

    The António Campinos-led EPO, nearly three weeks under his leadership, still fails to commit to justice (court rulings not obeyed), undo union-busting efforts and assure independence of judges; this, among other factors, is why the Office/Organisation and the UPC it wants to manage appear more or less doomed



  17. Links 18/7/2018: System76's Manufacturing Facility, Microsoft-Led Lobby for Antitrust Against Android

    Links for the day



  18. What Patent Lawyers Aren't Saying: Most Patent Litigation Has Become Too Risky to be Worth It

    The lawyers' key to the castle is lost or misplaced; they can't quite find/obtain leverage in courts, but they don't want their clients to know that



  19. Software Patents Royalty (Tax) Campaign by IBM, a Serial Patent Bully, and the EPO's Participation in All This

    The agenda of US-based patent maximalists, including patent trolls and notorious bullies from the United States, is still being served by the 'European' Patent Office, which has already outsourced some of its work (e.g. translations, PR, surveillance) to the US



  20. The European Council Needs to Check Battistelli's Back Room Deals/Back Door/Backchannel With Respect to Christian Archambeau

    Worries persist that Archambeau is about to become an unworthy beneficiary (nepotism) after a Battistelli setup that put Campinos in power, supported by the Belgian delegation which is connected to Archambeau, a national/citizen of Belgium



  21. PTAB and § 101 (Section 101) Have Locked the Patent Parasites Out of the Patent System

    Patent Trial and Appeal Board (PTAB) inter partes reviews (IPRs) have contributed a great deal to patent quality and have reduced the number of frivolous patent lawsuits; this means that firms which profit from patent applications and litigation hate it with a passion and still lobby to weaken if not scuttle PTAB



  22. Patents on Computer Software and Plants in the United States Indicative of Systemic Error

    The never-ending expansion of patent scope has meant that patent law firms generally got their way at the patent office; can the courts react fast enough (before confidence in patents and/or public support for patents is altogether shattered)?



  23. Yesterday's Misleading News From Team UPC and Its Aspiring Management of the Unified Patent Court (UPC)

    The Unified Patent Court (UPC) enthusiasts — i.e. those looking to financially gain from it — continue to wrestle with logic, manipulate words and misrepresent the law; yesterday we saw many law firms trying to make it sound as though the UPC is coming to the UK even though this isn’t possible and UPC as a whole is likely already dead



  24. Time for the European Commission to Investigate EPO Corruption Because It May be Partly or Indirectly Connected to EU-IPO, an EU Agency

    The passage of the top role at the EU-IPO from António Campinos to Christian Archambeau would damage confidence in the moral integrity of the European Council; back room deals are alleged to have occurred, implicating corrupt Battistelli



  25. Links 17/7/2018: Catfish 1.4.6 Released, ReactOS 0.4.9, Red Hat's GPL Compliance Group Grows

    Links for the day



  26. Links 16/7/2018: Linux 4.18 RC5, Latte Dock v0.8, Windows Back Doors Resurface

    Links for the day



  27. Alliance for US Startups and Inventors for Jobs (USIJ) Misleads the US Government, Pretending to Speak for Startups While Spreading Lies for the Patent Microcosm

    In the United States, which nowadays strives to raise the patent bar, the House Small Business Committee heard from technology firms but it also heard from some questionable front groups which claim to support "startups" and "jobs" (but in reality support just patents on the face of it)



  28. 'Blockchain', 'Cloud' and Whatever Else Gets Exploited to Work Around 35 U.S.C. § 101 (or the EPC) and Patent Algorithms/Software

    Looking for a quick buck or some low-quality patents (which courts would almost certainly reject), opportunists carry on with their gold rush, aided by buzzwords and hype over pretty meaningless things



  29. PTAB Defended by the EFF, the R Street Institute and CCIA as the Number of Petitions (IPRs) Continues to Grow

    Patent Trial and Appeal Board (PTAB) inter partes reviews (IPRs) come to the rescue when patently-bogus patents are used, covering totally abstract concepts (like software patents do); IPRs continue to increase in number and opponents of PTAB, who conveniently cherry-pick Supreme Court (SCOTUS) decisions, can't quite stop that



  30. IAM/Joff Wild May Have Become a de Facto Media Partner of the Patent Troll iPEL

    Invitation to trolls in China, courtesy of the patent trolls' lobby called "IAM"; this shows no signs of stopping and has become rather blatant


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