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

12.14.07

What Novell’s Financial Performance Means for Its Future

Posted in Finance, Microsoft, Novell, SCO at 8:28 pm by Dr. Roy Schestowitz

Here is a quick point-by-point roundup of the effects Novell's results are likely to have.

Buybacks

This report comes from CNN. Friday didn’t treat Novell any better than Thursday.

Shares of Novell fell Friday morning after the business software developer swung to a fourth-quarter loss, partly because of the sale of a consulting unit.

Shares shed 25 cents, or 8.5 percent, to $6.85 after the opening bell.

[...]

“After a year of solid improvement across a number of fronts, we believe Novell (NOVL) needs to augment its progress by using part of its $1.3 billion in net cash for a buyback program, which would help accelerate earnings per share growth into 2008-2009 and create a support level for the shares,” Materne said in a client note.

We mentioned buybacks on several occasions before, the context being Microsoft, Novell, and SCO [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11]. Buybacks are of course a sign of weakness, no matter how companies want to characterise (spin) them.

Where is the UBS analyst who enthusiastically predicted growth? Analysts are paid to say what the companies which hire them want to be said.

Overhaul

The restructuring costs at Novell are yet to take effect.

Novell (NOVL 7.10) reported better than expected results for the fourth quarter; however, the business software maker also issued tepid guidance and said it expects to incur additional costs from its ongoing restructuring efforts, sending shares more than 9% lower in pre-market activity.

Layoff Costs

Here is the article from the ‘local’ press:

Layoff costs spur loss for Novell in fourth quarter

The job custs are part of a plant to improve profitability by moving work to less expensive countries such as India and selling more products over the phone and Internet.
Novell said revenue this coming year will miss estimates because it is shifting some consuting work to partners.

There are quite a few typos in this article. Maybe they are just as sloppy as myself (poor habits of proofreading).

Savings and Debts

Motley Fool, which is affiliated with Microsoft, has this to say about Novell:

Novell has amassed enough cash that you start to wonder what it plans to do with the riches. But don’t expect it to pay back debt any time soon; Novell made $23 million off its investments this quarter, and those senior debentures with a low, low 0.5% coupon rate don’t mature for another 17 years.

Don’t forget about Novell's ongoing (and prior) financial troubles.

Microsoft Dependency

Several months ago, when Novell filed its redacted disclosure, Larry Dignan concluded that Novell had become Microsoft dependent. Nothing has changed since. Here is the latest from Larry:

To be sure, Novell is still dependent on Microsoft. A year into Novell’s five-year agreement with Microsoft, the company has invoiced more than half of the $240 million deal. Novell has added 4,700 customers in the last year.

Chances of Novell escaping this deal with Microsoft are growing smaller by the day. Novell can, in some sense, be seen as Microsoft subsidiary.

Microsoft (SUSE) Coupons

In LinuxInsider, Novell’s rise in sales is rightly described as “initial”. It’s all about the coupons, which are bound to run out.

“The Microsoft deal provided an initial boost to Novell’s Linux sales, but what’s going to allow it to position itself as a credible alternative to Red Hat is internal execution and a sharper focus,” Tillman said.

Novell has been comparing its current quarters to previous quarters that predate the Microsoft deal. The next bunch of quarterly reports will therefore be particularly interesting to watch.

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

What Else is New


  1. The EFF Back to Tackling Software Patents, Not Just Patent Trolls

    Electronic Frontier Foundation lawyers start targeting large companies that exploit patents for intimidation and extortion, not just patent trolling



  2. Microsoft Wants to Devour the Competition (Linux), Devour People's Data

    Refuting the "new Microsoft" propaganda and some ludicrous concept that Microsoft is now "playing nice"



  3. Benoît Battistelli Thinks 'President' is Above the Law, Decides to Ignore the Court's Ruling

    Staff of the EPO is given yet more reasons to protest tomorrow at the British Consulate, for the so-called 'President' of the EPO reminds everyone of the very raison d'être for the protest -- a vain disregard for the rule of law



  4. Links 24/2/2015: Xfce 4.12 a Week Away, GNOME 3.16 Previewed

    Links for the day



  5. Links 23/2/2015: Ubuntu Kylin 14.04.2 LTS, Cinnamon 2.6 Previews

    Links for the day



  6. IRC Proceedings: February 8th - February 21st, 2015





  7. The EPO's Sham 'Internal Investigation' of EPO Vice-President Željko Topić's Affairs

    The EPO never investigated the Željko Topić affair, it only pretends to have investigated (one small aspect, i.e. cherry-picking) using a Benoît Battistelli-controlled group



  8. Links 21/2/2015: GNOME 3.15.90, Google Wins Android Lawsuit

    Links for the day



  9. Microsoft AstroTurfing War on GNU/Linux is Still Going On, But Hidden Better, Uses API as Instrument of Lock-in

    The corruptible press continues to describe blatant attacks (Embrace, Extend, Extinguish) against GNU/Linux and Free software as Microsoft 'embracing' Open Source



  10. Lenovo's Superfish Scandal is Spyware on Top of Spyware (Microsoft Windows), the Problem is Inherently Proprietary Software

    Shifting focus to the root problem, which is neither Lenovo nor its laptops but the non-free programs installed on hardware



  11. Benoît Battistelli Once Again Threatens EPO Staff That 'Dares' to Protest, Battistelli Exploits Terror Attacks to Pretend to Respect Free Speech

    The European Patent Office (EPO) President, Benoît Battistelli, reportedly started threatening -- as before -- staff that decides to exercise the right to assemble and protest against abuses, including the abuses of President Battistelli himself



  12. Links 20/2/2015: Android Studio v1.1, GDB 7.9

    Links for the day



  13. Links 20/2/2015: Bloomberg Joins Linux Foundation, ClearOS Community 6.6.0

    Links for the day



  14. The Chartered Institute of Patent Attorneys Slams the European Patent Office for Structural Failings

    An important letter which we overlooked while writing yesterday's 4 articles about the European Patent Office (EPO); yet another key stakeholder complains



  15. Links 19/2/2015: Hewlett-Packard on Cumulus Linux, Previews of GNOME 3.16 Beta

    Links for the day



  16. Techrights Under Attack Again, Shortly After Important EPO Articles

    Techrights highlights a pattern that is months old; Site faces availability issues shortly after reports about the European Patent Office and its abuses



  17. EPO Staff Protests Against Benoît Battistelli’s Lowering of Patents Quality (Scope Expansion and Software Patents for Profit)

    A protest in Munich in less than 6 days will target Mr. Sean Dennehey, who has helped Battistelli cover up his abuses and crush legitimate critics, whom he deemed illegal opposition as if the EPO is an authoritarian regime as opposed to a public service which taxpayers are reluctantly (but forcibly) funding



  18. Breaking: European Patent Office Sued by Its Own Staff in The Hague, Must Unblock Staff's Voices

    The crooked management of the European Patent Office (EPO) gets in legal trouble after repeated attempts to cover up abuses and suppress criticism



  19. Željko Topić's History in SIPO Leaves a Legacy of Alleged DZIV Vehicles (Bribes), Authorship Abuses, and Intimidation Against Reporters

    Another deep look at Željko Topić's background in Croatia, preceding his very notorious appointment to the EPO where he now serves as Benoît Battistelli's most controversial attack dog



  20. The Old Obsession With Patent Trolls Continues to Distract From Debate About Software Patenting

    A roundup of recent coverage about monopolies on algorithms in the United States



  21. Links 19/2/2015: 64-bit ARM Linux, Chinese New Year

    Links for the day



  22. Links 18/2/2015: Linux Report, FlightGear 3.4

    Links for the day



  23. EPO Scandals: The Story So Far

    An overview of articles about mischief, misconduct and breach of laws at the EPO



  24. Links 17/2/2015: TripleO, Pivotal

    Links for the day



  25. Links 17/2/2015: SystemD 219, Frugalware 2.0 (Rigel) Released

    Links for the day



  26. Željko Peratović Slammed for Whitewashing Željko Topić After Publishing Important Piece on Behalf of Key Sources

    Response from Ivan Kabalin to Zeljko Peratovic's so-called "apology" which is both mysterious and seemingly inadequate as it does nothing to actually explain what was wrong (if anything)



  27. Benoît Battistelli Has Made Oversight of European Patent Office Absolutely Impossible





  28. Microsoft Already Killed Nokia, Don't Let It Kill Android Players Too

    Microsoft's strategy against Android mirrors the company's evil strategy that derailed MeeGo and Nokia



  29. Intel Continues to Attack Software Freedom Through UEFI

    The Trojan horse that Microsoft uses to cement its monopoly on desktops and laptops (making it hard or impossible to install and run GNU/Linux) is also being misused to block Coreboot



  30. Links 16/2/2015: Netrunner 15, Bridge Linux

    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