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 24/4/2014: OpenPower Foundation, Core Infrastructure Initiative

    Links for the day



  2. Microsoft's and Bill Gates' Biggest Patent Troll (Intellectual Ventures) Suffers Setback and Nokia is Dead While Patents Scattered to Microsoft Patent Proxies

    Microsoft's patent collectors (trolls) are to have a feast with Nokia patents while Intellectual Ventures, Microsoft's largest patent proxy, continues to attack companies including Motorola



  3. Patent Racketeering Continues With Nadella: Motorola the Latest to Join the FUD Campaign

    Nadella continues Ballmer's campaign of intimidation and alienation, showing that nothing has changed at Microsoft, not even the FUD



  4. Links 23/4/2014: GNOME Maps Application, LG in Headlines

    Links for the day



  5. Links 22/4/2014: More GNU/Linux Gains, Syria Updates

    Links for the day



  6. Links 21/4/2014: New Games for GNU/Linux, Some NatSec Politics

    Links for the day



  7. Site Focus for The Remainder of the Year

    What we plan for the rest of 2014 and why



  8. Links 20/4/2014: EFF FOSS, Easter Drone Strikes, Copyright Industry Fear of Google

    Links for the day



  9. Links 19/4/2014: Slow Easter News Day

    Links for the day



  10. Links 18/4/2014: New KDE, Kubuntu, and More

    Links for the day



  11. Some Perspective on Heartbleed®

    Our views on the whole Heartbleed® bonanza, which seems like partly a PR stunt (for multiple stakeholders)



  12. Microsoft is Leaving Windows -- Including Vista 8.1 -- Vulnerable to Non-Government Crackers, Not Only to NSA

    Microsoft makes it ever more evident that securing users of Windows is not at all a priority, and perhaps not even a desire



  13. Links 17/4/2014: Android RDP, New Ubuntu, RHEL 7 Milestone

    Links for the day



  14. Racing to 1984: Mass Surveillance, Cracking, 'Targeted' Assassinations, and Illegal Torture

    Links for the day



  15. More Microsoft Subsidies to Patent Troll Intellectual Ventures

    Microsoft hands money to Bill Gates' close friend who is the world's largest patent troll



  16. Aiding Microsoft Under the Disguise of 'Pro-FOSS'

    Not everything which is FOSS necessary becomes, by virtue of existence, a positive contribution, as we are constantly reminded by projects that help proprietary software and/or restrictions get a strong grip on FOSS



  17. Links 16/4/2014: Red Hat PR, Ubuntu LTS Imminent

    Links for the day



  18. Links 15/4/2014: Lots of PCLinuxOS Releases, Ukraine Updates

    Links for the day



  19. Apple and Microsoft Actively Lobbying Against Patent Reform in the US

    Apple and Microsoft are reportedly intervening/interfering with US law in order to ensure that the law is Free/libre software-hostile



  20. Lawsuit by Microsoft Shareholder Targets Fine for Crimes Rather Than the Crimes Themselves

    A new lawsuit by a Microsoft shareholder shows everything that's wrong with today's model of accountability, where those who are responsible for crimes are accused of not avoiding fines rather than committing the crimes



  21. Public Institutions Must Dump PRISM-Associated Software

    Another reminder that taxpayers-subsidised services should refuse, as a matter of principle, to pay anything for -- let alone deploy -- proprietary software with back doors



  22. GNU/Linux News: The Opportunities Amid XP EOL

    Links for the day



  23. Microsoft Gets Its Money's Worth From Xamarin: PlayStation 4 Now Polluted by Microsoft

    The Trojan horse of Microsoft, Xamarin, is pushing .NET into Microsoft's console competitor



  24. After Brendan Eich Comes Chris Beard

    Having removed Brendan Eich using bullying and blackmail tactics, his foes inside Mozilla achieved too little as we have yet another man (coming from inside Mozilla) acting as CEO



  25. Healthcare News: Free Software in Health, Humanitarian Causes

    Links for the day



  26. Links 14/4/2014: MakuluLinux, Many Games, More Privacy News and Pulitzer Prize for NSA Revelations

    Links for the day



  27. TechBytes Episode 87: Catching up With Surveillance (NSA, GCHQ et al.)

    The first audio episode in a very long time covers some of the latest happenings when it comes to privacy and, contrariwise, mass surveillance



  28. Server News: KVM, ElasticHosts, Other GNU/Linux Items, and Open Network Linux

    Links for the day



  29. Hardware News: Freedom, Modding, Hackability on the Rise

    Links for the day



  30. Distributions News: GNU/Linux Distros

    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