12.14.07

Gemini version available ♊︎

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 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.

DecorWhat Else is New


  1. IRC Proceedings: Thursday, December 02, 2021

    IRC logs for Thursday, December 02, 2021



  2. Links 3/12/2021: Nitrux 1.7.1 and Xen 4.16 Released

    Links for the day



  3. Links 2/12/2021: OpenSUSE Leap 15.4 Alpha, Qt Creator 6

    Links for the day



  4. The EPO's “Gender Awareness Report”

    There’s a new document with remarks by the EPO’s staff representatives and it concerns opportunities for women at the EPO — a longstanding issue



  5. IRC Proceedings: Wednesday, December 01, 2021

    IRC logs for Wednesday, December 01, 2021



  6. EPO Staff Committee Compares the Tactics of António Campinos to Benoît Battistelli's

    The Central Staff Committee (CSC) of the EPO talks about EPO President António Campinos, arguing that “he seems to subscribe to the Manichean view, introduced by Mr Battistelli…”



  7. Prof. Thomas Jaeger in GRUR: Unified Patent Court (UPC) “Incompatible With EU Law“

    The truth remains unquestionable and the law remains unchanged; Team UPC is living in another universe, unable to accept that what it is scheming will inevitably face high-level legal challenges (shall that become necessary) and it will lose because the facts are all still the same



  8. Links 1/12/2021: LibrePlanet CFS Extended to December 15th and DB Comparer for PostgreSQL Reaches 5.0

    Links for the day



  9. EPO Cannot and Will Not Self-Regulate

    The term financialisation helps describe some of the activities of the EPO in recent years; see Wikipedia on financialisation below



  10. [Meme] Germany's Licence to Break the Law

    Remember that the young Campinos asked dad for his immunity after he had gotten drunk and crashed the car; maybe the EPO should stop giving diplomatic immunity to people, seeing what criminals (e.g. Benoît Battistelli) this attracts; the German government is destroying its image (and the EU’s) by fostering such corruption, wrongly believing that it’s worth it because of Eurozone domination for patents/litigation



  11. EPO Dislikes Science and Scientists

    The EPO's management has become like a corrupt political party with blind faith in money and monopolies (or monopoly money); it has lost sight of its original goals and at this moment it serves to exacerbate an awful pandemic, as the video above explains



  12. Links 1/12/2021: LibreOffice 7.3 Beta, Krita 5.0, Julia 1.7

    Links for the day



  13. Links 1/12/2021: NixOS 21.11 Released

    Links for the day



  14. IRC Proceedings: Tuesday, November 30, 2021

    IRC logs for Tuesday, November 30, 2021



  15. Links 1/12/2021: Tux Paint 0.9.27 and WordPress 5.9 Beta

    Links for the day



  16. [Meme] EPO Administrative Council Believing EPO-Bribed 'Media' (IAM Still Shilling and Lying for Cash)

    IAM continues to do what brings money from EPO management and Team UPC, never mind if it is being disputed by the patent examiners themselves



  17. The EPO's Mythical “Gap” Has Been Found and It's Bonuses for People Who Use Pure Fiction to Steal From Patent Examiners

    The phony president who has the audacity to claim there's a budget gap is issuing millions of euros for his enablers to enjoy; weeks ahead of the next meeting of national delegates the Central Staff Committee (CSC) tells them: "Events show that the delegations’ concerns about functional allowances have materialised. The lack of transparency and inflation of the budget envelope gives rise to the suspicion that high management is pursuing a policy of self-service at the expense of EPO staff, which is difficult to reconcile with the Office’s claimed cost-saving policy, and to the detriment of the whole Organisation."



  18. Video: Making the Internet a Better Place for People, Not Megacorporations

    Following that earlier list of suggested improvements for a freedom-respecting Internet, here's a video and outline



  19. Links 30/11/2021: KDE Plasma 5.23.4, 4MLinux 38.0, Long GitHub Downtime, and Microsoft's CEO Selling Away Shares

    Links for the day



  20. A Concise Manifesto For Freedom-Respecting Internet

    An informal list of considerations to make when reshaping the Internet to better serve people, not a few corporations that are mostly military contractors subsidised by the American taxpayers



  21. Freenode.net Becomes a 'Reddit Clone' and Freenode IRC is Back to Old Configurations After Flushing Down Decades' Worth of User/Channel Data and Locking/Shutting Out Longtime Users

    Freenode is having another go; after “chits” and “jobs” (among many other ideas) have clearly failed, and following the change of daemon (resulting in massive loss of data and even security issues associated with impersonation) as well as pointless rebrand as “Joseon”, the domain Freenode.net becomes something completely different and the IRC network reopens to all



  22. Jack Dorsey's Decision is a Wake-up Call: Social Control Media is Just a Toxic Bubble

    The state of the World Wide Web (reliability, preservation, accessibility, compatibility etc.) was worsened a lot more than a decade ago; with social control media that’s nowadays just a pile of JavaScript programs we’re basically seeing the Web gradually turning into another Adobe Flash (but this time they tell us it’s a “standard”), exacerbating an already-oversized ‘bubble economy’ where companies operate at a loss while claiming to be worth hundreds of billions (USD) and generally serve imperialistic objectives by means of manipulation like surveillance, selective curation, and censorship



  23. IRC Proceedings: Monday, November 29, 2021

    IRC logs for Monday, November 29, 2021



  24. Links 29/11/2021: NuTyX 21.10.5 and CrossOver 21.1.0

    Links for the day



  25. This Apt Has Super Dumbass Powers. Linus Sebastian and Pop_OS!

    Guest post by Ryan, reprinted with permission



  26. [Meme] Trying to Appease Provocateurs and Borderline Trolls

    GNU/Linux isn’t just a clone of Microsoft Windows and it oughtn’t be a clone of Microsoft Windows, either; some people set themselves up for failure, maybe by intention



  27. Centralised Git Hosting Has a Business Model Which is Hostile Towards Developers' Interests (in Microsoft's Case, It's an Attack on Reciprocal Licensing and Persistent Manipulation)

    Spying, censoring, and abusing projects/developers/users are among the perks Microsoft found in GitHub; the E.E.E.-styled takeover is being misused for perception manipulation and even racism, so projects really need to take control of their hosting (outsourcing is risky and very expensive in the long run)



  28. Links 29/11/2021: FWUPD's 'Best Known Configuration' and Glimpse at OpenZFS 3.0

    Links for the day



  29. President Biden Wants to Put Microsofter in Charge of the Patent Office, Soon to Penalise Patent Applicants Who Don't Use Microsoft's Proprietary Formats

    The tradition of GAFAM or GIAFAM inside the USPTO carries on (e.g. Kappos and Lee; Kappos lobbies for Microsoft and IBM, whereas Lee now works for Amazon/Bezos after a career at Google); it's hard to believe anymore that the USPTO exists to serve innovators rather than aggressive monopolists, shielding their territory by patent threats (lawsuits or worse aggression) and cross-licensing that's akin to a cartel



  30. Microsoft GitHub Exposé — Part VIII — Mr. Graveley's Long Career Serving Microsoft's Agenda (Before Hiring by Microsoft to Work on GitHub's GPL Violations Machine)

    Balabhadra (Alex) Graveley was promoting .NET (or Mono) since his young days; his current job at Microsoft is consistent with past harms to GNU/Linux, basically pushing undesirable (except to Microsoft) things to GNU/Linux users; Tomboy used to be the main reason for distro ISOs to include Mono


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