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

12.09.09

Novell’s Channel Breaks Further, Novell Loses Over $200,000,000 in 2009 (Fiscal)

Posted in Finance, GNU/Linux, Microsoft, Novell, Ron Hovsepian at 6:00 pm by Dr. Roy Schestowitz

Trolley

Summary: Novell is losing its UK distributors and there is little hope for rebound based on the financial situation and general trend

Hitherto, Novell has been pretending that Microsoft’s patent deal will spell the renaissance of Novell. Not even as a Microsoft subsidiary can Novell be incarnated given that it’s losing business to Microsoft. To give just one example from this week’s news:

Domino’s was using Novell’s GroupWise for about 1,000 users and realized that encryption was necessary to protect the communications involving the employment information that’s transmitted between its stores and its outside benefit providers. The restaurant chain began deploying Proofpoint and Voltage’s encryption products while still on GroupWise because it planned to work with both GroupWise and Microsoft Exchange/Outlook when the company upgraded later, Anderson explains.

That’s what friends like Microsoft are for.

We actually found it interesting that Novell is ‘pulling a Microsoft’ [1, 2, 3, 4] with a new “study” that’s intended to help Novell lobby and elevate sales.

The goal of Novell’s study was to find out what sort of solutions are used by the Hungarian CIOs (focusing on the large enterprises, governmental and educational institutions), if they are content with their current systems, what are the major challenges they face and in what direction do they plan to advance.

Regardless of Novell’s efforts to successfully woo CIOs, its channel in the UK keeps breaking apart.

In the UK Novell has reduced its distribution by 35 percent – including the addition of Avnet in August. Veitkus says he expects its number of ‘non-performing’ resellers to shrink by roughly the same figure.

We wrote about this before. Novell’s broken channel and abandonments do not help and now comes another major UK setback:

Software licensing VAR Trustmarque has cut the number of distributors it works with for 14 of its main vendor lines worth a combined £30m annually.

Some 14 distributors bid for the business but only 10 were selected following a three-month tender process that finished last week.

Vendors covered by the tender include Citrix, Novell VMWare, McAfee, Adobe and Websense. Magirus picked up the VMware piece, Interactive Ideas bagged Novell, Arc Technology the McAfee business and e92plus the Websense segment. Other distributors to make the cut include Bell and Computer 2000.

So the future is not so bright, either. Novell’s terrible financial results that we wrote about last week [1, 2] are discussed in the same publication as above. It says:

Novell has swung to a $206m (£124m) loss for its fiscal 2009 after taking a whopping $279m impairment hit in its final quarter.

More here:

Novell Inc. NOVL said its fiscal fourth-quarter loss widened to $255.7 million, or 74 cents a share, from $16.3 million, or 5 cents a share, in the year-ago period. Excluding one-time items, the IT management software company said it would have reported earnings of 11 cents a share. Revenue fell to $215.6 million from $244.7 million last year.

And here:

Software company Novell Inc.’s (NOVL) fiscal fourth-quarter loss widened on a $279 million impairment charge and lower revenue, although revenue from its Linux-platform products increased 14%. Novell, Inc. (NASDAQ:NOVL, $4.04, +$0.13, 3.32%) dropped 1.73 percent to $3.97 on Friday morning pre-market trading session, while on Thursday, shares of Novell were up 3.32 percent and closed on $4.04.

To quote a comment on the subject:

Ron is asleep at the wheel ? No more after a few big customers ?

Submitted by atang1 on Sat, 12/05/2009 – 04:33.

When the chips are down, the CEO has to bring the big customers in? Ron Did British Telecom(security management) and Peugeot(Linux desktop) and Micropsoft paid for Linux services(bugs fixing) for their customers, then silence for years.

One has to examine one’s own destiny? Miguel does not have any technology that can be turned into money?

Netbooks are changing in architecture(simple multicored cpu for realtime vs. virtualization and USB 3.0 bus), data centers are changing to triple play. Where Novel is going, nobody knows. A $billion dollar company has to size and target customers, all the time?

We are stockholders of Novl. Opinions here maybe biased.

A former employee of Novell says that “Novell’s quarter crumbles” and here is just how bad it is:

In third quarter earnings news, computer networking and services company Novell (NASDAQ:NOVL) reported a loss of 74 cents per share. Analysts had expected a 7 cent per share profit.

That is a lot of money to lose in one year, especially considering the reduced expenses (layoffs and other cancellations).

Novell has reported a net loss of $256m for the fourth quarter of 2009, compared to a net loss of $16m in the same quarter last year. Revenue declined 12% to $216m.

Novell cannot go on like this forever. Is it time for Ron Hovsepian to beg again?

Ron Hovsepian begs Ballmer

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 25/7/2014: GOG With GNU/Linux, Ubuntu 14.04.1 LTS

    Links for the day



  2. Links 24/7/2014: Oracle Linux 7; Fedora Delays

    Links for the day



  3. Valerie Strauss Explains Why Gates Foundation's Lobbying for 'Common Core' (Privatisation) is a Swindle That Makes Microsoft Richer

    Continued criticism of the Gates Foundation's lobbying and masquerading, with more journalists brave enough to highlight the corruption



  4. USPTO Officially Sets New Guidelines to Limit Scope of Software Patents in the United States

    Even patent lawyers finally acknowledge that the incentive to file software patent applications has been reduced, as the scope of patents on software has been noticeably narrowed and they are harder to acquire, let alone enforce in a courtroom



  5. UK Government Adopts OpenDocument Format (ODF) and Microsoft Already Attacks the Government Over It, Showing Absolutely No Commitment to Open Standards

    Only "Microsoft as the standard" is the 'standard' Microsoft is willing to accept, as its response to the Cabinet Office's judgment reveals



  6. Microsoft Layoffs of 2014

    Another quick look at Microsoft's horrible state of affairs and why it has virtually nothing to do with Nokia



  7. Links 22/7/2014: Linux 3.16 RC 6, New UberStudent

    Links for the day



  8. Links 20/7/2014: Jolla in India, Mega Censored in Italy

    Links for the day



  9. Longtime Mono Booster Joins Microsoft-linked Xamarin

    Jo Shields almost joins Microsoft, settling instead for its proxy, Xamarin



  10. Linux Foundation Welcomes Patent Aggressor Red Bend Software

    The Linux Foundation's AllSeen Alliance welcomes as a member a company that uses software patents to sue Free/Open Source software



  11. Matt Levy From Patent Progress (and CCIA) Does Not Really Want Patent Progress

    Matthew ('Matt') Levy moved into a foe of patent progress last year, but he still runs a site calls Patent Progress, in which he diverts all attention to patent trolls (as large corporations such as Microsoft like to do)



  12. Attacking FOSS by Ignoring/Overlooking Issues With Proprietary Software

    The biasing strategy which continues to be used to demonise Free/Open Source software (FOSS) along with some new examples



  13. Links 19/7/2014: CRUX 3.1 is Out, CyanogenMod Competes With Google Now

    Links for the day



  14. Microsoft's Massive Layoffs Go Far Beyond Nokia; Nokia's Android Phones Axed by Microsoft's Elop

    Microsoft's rapid demise and permanent exit from Nokia's last remaining Linux platform (after Microsoft had killed two more)



  15. Patents on Software Already Being Invalidated in Courts Owing to SCOTUS Ruling on 'Abstract' Patents

    The Federal Circuit Appeals Court has just "invalidated a software patent for being overly abstract," says a patents expert



  16. OpenSUSE 'Community' is Crumbling, AttachMSFT Killed SUSE's Potential (Except as Microsoft Tax)

    Not much too see in the land of SUSE and Attachmate, or formerly the company known as Novell



  17. Links 18/7/2014: Slackware Turns 21, Spotify Switches to Ubuntu

    Links for the day



  18. Links 16/7/2014: Manjaro 0.8.10 Third Update, SIA Migrates to Red Hat

    Links for the day



  19. Microsoft's Latest Round of Massive/Bulk/Large-scale Layoffs

    Microsoft boosters are preparing 'damage control' pieces ahead of massive layoffs at Microsoft



  20. Secrecy Allows British Government to be Manipulated by Microsoft for Spyware Behind Closed Doors

    Dependence on malicious software from NSA ally Microsoft is highly dependent, at least in Britain, on government secrecy and vain refusal to comply with Freedom of Information (FOI) requests



  21. Software Patent Applications Already Being Rejected in the US Owing to SCOTUS Ruling, Some Patent Lawyers Are Fuming

    Good news on the software patents front as the USPTO starts rejecting software patent applications, based on patent lawyers' words



  22. Links 15/7/2014: New Plasma, Google Announces Project Zero

    Links for the day



  23. Interest in Free Software Coverage and 9 Months With Tux Machines

    Thoughts about the level of interest in Free/Open Source software (FOSS) and growth of at least some sites that focus on GNU/Linux



  24. White House Backs Away From Appointing Patents Zealot to Top USPTO Position

    Philip Johnson is no longer poised to become the Director of the USPTO, which is basically an establishment that provides protectionism to primarily US-based corporations



  25. Professor James Bessen Presents the Case Against Software Patents After Important SCOTUS Ruling

    The debate about software patents in the Unites States continues, with academia on one side and greedy patent lawyers on the other



  26. Software Patents Demising in the US as Microsoft Patent Attacks on Android/Linux Suffer a Huge Setback

    M-Cam's assessment of Microsoft's bundle of extortion (using software patents) shows toothlessness, irrespective of the SCOTUS decision to effectively annul "abstract" software patents



  27. Links 13/7/2014: KDE Activity Surge

    Links for the day



  28. Pro-Microsoft Spin in Microsoft-Funded News Networks

    The rogue media (misinformation) campaign of Microsoft benefits from networks which have been paid by Microsoft over the years



  29. Cronyism at Play: European Hostility Towards Free/Libre Software Despite Espionage and Moles

    Europe continues to be held hostage with back doors, lock-in, and massive payments to foreign powers, despite evidence that these powers are destructive and hostile



  30. Wirelessly-Controlled Contraceptives and Other Villainous Bill Gates Initiatives

    Remote controls for people's reproductive systems are now in the making and Bill Gates is a prominent investor in the technology


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