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. Links 1/9/2015: Manjaro Linux 0.8.13, Netrunner 14.2 LTS

    Links for the day



  2. Patents Roundup: IAM's Claims About India, Lawyers' Patent Bias, ITC for Microsoft, and PTAB Against Kyle Bass

    Another weekly summary, focusing on issues that pertain to or affect Free software in particular



  3. Microsoft Crowd Rocks the Media With Misleading Claims and Deliberate Lies About GNU/Linux, Vista 10, and Free/Open Source Software

    A roundup of rigged press coverage, intended purely to serve Microsoft's agenda



  4. Links 31/8/2015: Linux 4.2, LXLE 14.04.3

    Links for the day



  5. IRC Proceedings: August 9th, 2015 – August 29th, 2015

    Many IRC logs



  6. “Conservative” Site Responds (Yet Again) to Misguided “Conservative” Efforts to Derail Patent Reform in the US

    Patent trolls throw stones in glass houses, contributing to their own unpopularity, but some influential “Conservatives” continue to defend (conserve) them



  7. Increase in Lobbying for Software Patents in Europe and Its Trojan Horse, the Unitary Patent (UPC)

    The relentless campaigns to bring software patents into Europe have not stopped and so-called 'unification' -- much like so-called 'trade' deals -- serves to support them



  8. Microsoft Technology Crashes Financial Markets, Again

    SunGard, which is a Microsoft shop, is clearly failing to provide what it calls mission-ciriticaal [sic] solutions



  9. Alice v. CLS Bank (Alice/§101) Comes to Squash Software Patents Even in Eastern District of Texas

    The crackdown on software patents is coming along nicely and the Alice case is now being utilised even in the capital of patent trolls



  10. Apple's Patent Cases Against Android Are Falling Apart, as Acknowledged Even by the Anti-Android Lobby





  11. Links 29/8/2015: NetworkManager 1.0.6, Systemd Merges “su” Command Replacement

    Links for the day



  12. Microsoft Loves Linux to Death and Still Tries to Kill GNU/Linux

    Microsoft's relentless attacks on GNU/Linux and Free software in general (even if it runs on Windows) are so evident that claims of 'love' remain laughable at best (if not infuriating)



  13. Censorship, Self-Censorship and Intimidation Now the Modus Operandi at EPO

    The European Patent Office has ceased even trying to pretend that it respects human rights, including the right to free speech



  14. Patent Practitioners: "The Unitary Patent Might be Able to Open the Floodgates for Software Patents in Europe"

    The EPO-backed Unitary Patent scheme threatens to bring software patents to Europe and along with them a lot of patent trolls from all around the world (especially the United States)



  15. Microsoft Lies About Vista 10 and Increases Microsoft Surveillance (Even Beyond Vista 10 and Into Android, Vista 7/8)

    Windows surveillance expands retroactively, making its way into platforms other than Windows and also expanding to predecessors of Vista 10



  16. Another Suicide at the EPO, Fifth by Our Count

    Yet another EPO member of staff has just committed suicide, leading to the inevitable question: how many people need to die before Battistelli and his minions are out of the Office for good?



  17. Links 27/8/2015: ownCloud Desktop Client 2.0, Red Hat Downgraded

    Links for the day



  18. Microsoft-connected Mesosphere Threatens to Eliminate Free Software in the Datacentre

    Hiding behind a misleading 'open' label while actually backed by Microsoft (and based on new rumours may join Microsoft), Mesosphere wishes to eradicate Free and back doors-free software in large datacentres hosting a lot of physical and virtual servers



  19. Microsoft Aggression Against GNU/Linux Amid Vista 10's Failure

    A look at the recent assault on GNU/Linux in Munich and the likely cause for this assault (in such a timely fashion, too)



  20. Message to LinuxCon Regarding Microsoft: “It is Necessary to Get Behind Someone in Order to Stab Them in the Back.” -Sir Humphrey Appleby

    Jim Zemlin, executive director of the Linux Foundation, helps Microsoft gain influence in the Foundation after payments are received



  21. Market Share Estimates Confirm That Vista 10 Failed in a Major Way

    Confirmatory evidence that Vista 10 is failing in the market about a month after its much-hyped (paid coverage) release



  22. When Microsoft, the Master of Patent Trolls, Complains About Trolls

    Possibly the world's biggest patent abuser and monopolist, which also creates many patent trolls (including by far the biggest one), takes on a far smaller abuser in Court



  23. Letter Signed by Two German Officials Becomes a Microsoft Weapon of Propaganda

    Microsoft and its minions refuse to leave Munich alone, even though the vast majority in Munich are perfectly happy with Free/libre software



  24. Links 25/8/2015: Linux Kernel 4.2 Final RC, KDE Ships Plasma 5.4.0

    Links for the day



  25. Sabine Pfeiler and Otto Seidl Should Take Note as Russia -- Like China -- is in the Process of Banning Microsoft Windows for Security Reasons

    A look at a strange suggestion, signed by Sabine Pfeiler and Otto Seidl, who suggest going back to Microsoft which is basically a spyware company now



  26. Microsoft Windows Leads to Espionage and Blackmail: Latest Examples

    Another news overview, detailing high-profile examples of high-cost Windows deployments (including the cost of litigation and settlement)



  27. Links 23/8/2015: BcacheFS Benchmarks, Blackphone 2

    Links for the day



  28. Links 22/8/2015: Chromebook Gains, GNOME 3.18 Clues

    Links for the day



  29. Alice v. CLS Bank (the Alice Case/§101) Continues to Crush Software Patents in the United States

    Patent scope in the United States continues to be narrowed down as more software patents get their wings clipped



  30. Company of Hype and 'Fanbois' Continues Its Patent Attacks on Android/Linux

    Apple's attacks on Android (using bogus patents) may be soon be escalated to the US Supreme Court (SCOTUS)


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