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

05.30.08

Financial Games: Novell’s Main Strength?

Posted in Deception, Finance, GNU/Linux, Microsoft, Novell at 12:43 pm by Dr. Roy Schestowitz

Lots of companies do this, but it’s no excuse

This issue is one that we wrote about earlier today. Critically, we also wrote about the buybacks earlier this month, along with head-changes, offshoring, etc.

“Novell embellishes its case and offers a fantastic story because investors sometimes enjoy good news more than honesty.”Things are not going too well at Novell, but like most companies — no matter the circumstances — it manages to deceive the press. Novell embellishes its case and offers a fantastic story because investors sometimes enjoy good news more than honesty. Let’s just pretend that the massive looming layoffs are non existent, okay?

To repeat the gist of this story, Novell cut off 10% of its staff last year [1] (more axing to come soon) and it counts as “Linux sales” transitions from its old O/S/es to GNU/Linux [2] (e.g. OES). In other words, Novell is seems to be cooking the books and innocent folks like Matt Asay are buying it, much like the rest of the mainstream press. You can spot sheep when you see the likes of the Wool Street Journal promoting the blue- and white-collar chaps (blue chips for white sheep).

Novell is a partner of Microsoft now [3], so wanting it to succeed would be risky. In fact, relying on it would be risky too.

References below are from yesterday’s news alone.
____

[1] Novell moves into black in 2d quarter

Chief executive Ron Hovsepian slashed about 10 percent of jobs last year and focused on new Linux products, seeking to counter a drop in revenue from older software. Sales of its Linux operating system rose 31 percent to $29 million last quarter.

[2] Novell financials beat estimates again

The company said it showed healthy growth in its core business units around the Linux operating system, identity/access management software and systems management tools.

[This confirms what was said earlier about layoffs and cannibalisation. Linux sales are the main thing the company really raves about with actual figures, implying that the rest isn't too good (not enough to harp about).]

[3] Foolish Forecast: Novell Swings for the Fences

Don’t be fooled by the massive cash flow margins in 2007. It’s a mirage, generated by a cross-licensing and cross-promotion agreement with Microsoft that landed Novell a one-time $348 million payment. Without it, the trailing free cash flow margins would have stayed positive but in the lower single digits.

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

8 Comments

  1. David Flax said,

    May 30, 2008 at 1:54 pm

    Gravatar

    We’ve been through this before. Why is any of this bad news? Changing heads is a normal course of business. Buying your own stock is not necessarily bad news and in this case it is good news since Novell is very cash heavy. Offshoring is common place these days as well. Cutting staff can be good depending on which divisions Novell is cutting staff from? Do you know which divisions Novell cut staff from? Is it possible that these staff cuts were to remove duplicate positions within the company? I don’t know personally and maybe you do. Were they all developers?

    You should get one thing straight, Novell does not include OES as part of it’s Linux sales, OES is included in Workgroup sales which dropped 1% to 92 million. Maybe you know something investors don’t know but a 37% increase in revenue is rarely a bad thing.

  2. Roy Schestowitz said,

    May 30, 2008 at 2:21 pm

    Gravatar

    According to this logic, David, if a company adds staff, keeps the same managers for ages (maybe an entire career), has investors buying its stock (thriving as a publicly-traded company) and keeps its jobs close to ‘home’ (paying generously to employees), then that does not say anything about the company’s status.

    As for OES, it wasn’t an example that I was entirely certain about, but surely enough Novell is migrating old clients to GNU/Linux (in one form or another). That does not necessarily mean that it adds new clients.

  3. David Flax said,

    May 30, 2008 at 2:40 pm

    Gravatar

    Roy,

    That’s a stretch based on what I said. I said it is a normal course of business and not necessarily a bad thing. That certainly doesn’t mean that keeping the same managers and paying your staff well is a bad thing, but many companies expect some turnover. People in general need new challenges. It is a rare person that stays with a company for their entire career. Has it happened sure, it’s just not that common.

    Yes Novell is trying to migrate clients to Linux either OES or Suse. You say it does not neccessarily mean they add new clients. It also could mean Novell did add new clients. You just don’t know.

  4. Roy Schestowitz said,

    May 30, 2008 at 2:48 pm

    Gravatar

    That’s true. Novell knows best, but it keeps the cards close to its chest and its important deal redacted.

  5. David Flax said,

    May 30, 2008 at 2:59 pm

    Gravatar

    I agree with you there. I would rather know more about the deal too.

  6. Miles said,

    May 30, 2008 at 3:01 pm

    Gravatar

    Novell seems to be putting more of an emphasis on Linux the last year or two and so I suspect that the job cuts have been in non-Linux areas. Ironically, the text that Roy has quoted in red even seem to suggest that ;-)

    slashed about 10 percent of jobs last year and focused on new Linux products, seeking to counter a drop in revenue from older software.

    it showed healthy growth in its core business units around the Linux operating system

    Sounds like the cuts were in the aging proprietary software departments (e.g. NetWare?) since it’d be hard to focus on Linux if you are cutting Linux jobs. Plus we also know from reading various blog feeds, etc that Novell has been actively hiring in the Linux departments.

  7. Roy Schestowitz said,

    May 30, 2008 at 3:21 pm

    Gravatar

    Oh, of course Novell ‘recruited’ a lot of people for OpenSUSE. You know, to share the code to [sic] Novell and Microsoft.

  8. Victor Soliz said,

    May 30, 2008 at 5:45 pm

    Gravatar

    Enter Novell, a company that attributes its only success to being Microsoft’s sidekick.

What Else is New


  1. Vesna Stilin's Remarks on Željko Topić: Part XI

    Vesna Stilin speaks about her confrontation with EPO Vice-President Željko Topić, who has criminal lawsuits against him in Croatia



  2. Links 22/11/2014: Linux Mint 17.1, Ubuntu MATE

    Links for the day



  3. Links 21/11/2014: Problems at Debian, Jolla Tablet

    Links for the day



  4. Links 18/11/2014: Linux 3.18 RC 5, New DigiKam

    Links for the day



  5. Special Report: Many Criminal Charges Against EPO Vice-President Željko Topić

    The abuses of Željko Topić, who has gained notoriety in his home country, are rapidly becoming public knowledge across all of Europe



  6. Links 16/11/2014: Xfdesktop 4.10.3, GNU Hello 2.10

    Links for the day



  7. Microsoft is Going Into the Anti-Whistleblowing Business, Dodges Criticism Over 19-Year Bug Door in Windows

    With Aorato acquisition Microsoft helps protect the criminals (from whistleblowers) and with lies about .NET Microsoft distracts from a bug that has facilitated remote access into Windows (by those in the know) for nearly two decades



  8. Reaffirming Microsoft's Long-Known Hostility Towards Net Neutrality, Microsoft Crashed Juniper

    Steve Ballmer is ranting against net neutrality and Juniper's business is in trouble after a lot of executives from Microsoft took over most top positions there



  9. Another Massive Step Towards Elimination of Software Patents as Even CAFC Rules Against Them

    After SCOTUS gets involved in the Ultramercial case, the CAFC finally decides to actually serve justice rather than dogma



  10. The GOP's Patent Reform Plan Not Effective Enough to Stop Massive Patent Trolls Like Microsoft/Nokia

    The corporations-serving GOP says that it wants a patent reform, but another reminder is needed of the futility of the suggested changes



  11. How the EPO's Executive Branch (Battistelli and Topić) Banned Scrutiny and Created Authoritarian Model of Control: Part X

    A look at highly dubious moves by EPO President Battistelli and his right-hand man Topić, whose abuses are becoming hard to oversee or even report



  12. Links 15/11/2014: Linux Mint 17.1 Release Candidate, Popcorn Time 0.3.5

    Links for the day



  13. IRC Proceedings: October 26th, 2014 – November 8th, 2014

    Many IRC logs



  14. The Terrible Joke Which is Microsoft 'Loving' Linux: Nightmares With UEFI 'Secure' Boot (i.e. Windows Monopoly Imposed) Continue to Affect GNU/Linux Users

    A reminder of Microsoft's sheer hostility towards GNU/Linux and long-reaching sabotage of GNU/Linux installations



  15. Patent Lawyers Worry About Section 101 in 'Alice' (and Other Patent News)

    A quick roundup of news of interest regarding software patents



  16. Will Write for FUD (Against FOSS)

    Black Duck rears its ugly head again, serving to show that it is in the business of changing perceptions and not in the information or analysis business



  17. Debunking Several Days of Never-Ending Lies About Microsoft and .NET

    .NET is not "Open Source", it cannot be forked (there remains patent threat), Visual Studio is still completely proprietary and it is expected to come to other platforms only because Windows has lost its dominance and Microsoft wants to perpetually control APIs (with software patents) and hence reign over developers



  18. Links 14/11/2014: LibreOffice 4.3.4, Ads Now in Firefox

    Links for the day



  19. Links 14/11/2014: GNOME 3.14.2, PulseAudio 6.0

    Links for the day



  20. Microsoft Windows is Still Designed as a Paradise of Back Doors, Intrusion, Wiretaps, and Interception

    At many levels -- from communication to storage and encryption -- Windows is designed for the very opposite of security



  21. Forget the FUD About Bash and OpenSSL, Microsoft Windows Blamed for Massive Credit Cards Heist

    Home Depot learns its lesson from a Microsoft Windows disaster, but it stays with proprietary software rather than move to software that is actively audited by many people and is inherently better maintained (Free/libre software)



  22. Windows 'Update' and NSA Back Doors, Including a 19-Year Bug Door in Microsoft Windows

    The back doors-enabled Microsoft Windows is being revealed and portrayed as the Swiss cheese that it really is after massive holes are discovered (mostly to be buried by a .NET propaganda blitz)



  23. Revealed: Microsoft is Trying to Corrupt the UK in Order to Eliminate Its OpenDocument Format-Oriented Standards Policy

    Microsoft interference with Britain's preference for ODF is now confirmed, thanks to a valuable news report from Computer Weekly; OOXML lock-in is being unleashed by Microsoft on Android users



  24. Links 13/11/2014: Ubuntu MATE 14.04.1 LTS, New KDE Plasma

    Links for the day



  25. .NET is NOT "Open Source", But Microsoft's Minions Shamelessly Openwash It Right Now

    The openwashing of .NET continues with yet another publicity stunt that is intended to lock in developers



  26. Links 11/11/2014: GNOME Trademark Dispute Settled, Mozilla Embraces Tor

    Links for the day



  27. Patent Reform Subversion After Republican (GOP) 'Win' in US Senate

    The Grand Corporations Party, or the political party which serves large businesses that are funding it, continues to just focus on a mirage of a 'reform' rather than tackle the real issues where culprits include very large businesses such as Microsoft and Apple



  28. Microsoft-Armed Patent Troll MOSAID (Now Conversant) Wants to Sweep up More Patents for Litigation

    Reports about patent trolls and scope of patents serve to show what the foes of Free software are up to right now



  29. When Courts in the US Attack the Right to Reuse APIs

    Challenging the clueless ruling from the Court of Appeals for the Federal Circuit in the United States (very pro-software patents and anti-computer science), notable programmers write to the highest court



  30. Links 10/11/2014: 2015 GNU/Linux Forecasts, Debian Shakeup

    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