05.28.10

Gemini version available ♊︎

Novell’s Results Not Enough to Prevent Takeover

Posted in Finance, GNU/Linux, Microsoft, Novell, Red Hat at 11:30 am by Dr. Roy Schestowitz

Summary: Companies arguably see what’s coming and they stop buying Novell, leaving the company at Microsoft’s mercy and the hands of vulturous hedge funds

THE BIDDING is not public yet, but it is likely to become publicised next week, just like in the previous quarter. Yes, it is highly probable that Novell will be bought soon and Novell customers feel “nervous”, as reported the other day. Don’t take it from anecdotal evidence; here is Novell’s CFO talking about the issues more statistically:

Novell Inc. (NOVL US): Chief Financial Officer Dana Russell said customers are delaying some contract signings until they better understand the long-term prospects for the maker of Linux operating-system software. Novell has said it’s reviewing whether to sell itself.

Here is a transcript of Novell’s Earnings Call (sliced into three pages), here is an event announcement, and Novell’s press release about its results. UNIX/Linux expert Timothy from The Register has it covered and he goes beyond press releases and fluff sourced from Novell.

Whatever drama is going on at Novell in the boardroom — where the company is apparently soliciting takeover offers from up to 20 different prospective buyers — it has spilled over into the company’s financial results.

[...]

In a call with Wall Street analysts, Dana Russell, Novell’s chief financial officer, said that fiscal Q2 revenues were in line with expectations and profits came in at the high end of the range. Linux bookings were down 3 per cent and Linux invoicing was down 1 per cent in the quarter, with a tough compare because so many Microsoft shops cashed in their SUSE Linux certificates in the year ago quarter.

Excluding these Microsoft deals, Russell said that the SUSE Linux invoicing in the quarter was up 46 per cent compared to last year. But that seems to indicate how weak SUSE Linux sales were a year ago and how dependent Novell’s Linux biz is on what Microsoft customers do. Part of the problem is that Microsoft bought SUSE Linux licenses at 45 per cent of the then-current list price in 2007, and at current prices for SUSE Linux support, these licenses are renewing at something closer to 15 per cent of that original value. This makes the compares for the Linux biz doubly tough. But, Novell is optimistic as always. “We are pleased with the growth in our core business,” Russell said.

Novell is too Microsoft dependent. Red Hat sells GNU/Linux without this silly reliance on software patents tax and that is why Novell’s future looks neither so promising nor long. There is no reason to buy SLE* anymore.

Some additional references are added below.
____
[1] A Look Ahead to Novell’s Earnings Announcement; NOVL, SYMC, MFE, ASIA

[2] Novell (NOVL) Expected TO Report Q1 Earnings Of $0.07 Per Share

[3] Macquarie Maintains Bullish Stance on Novell (NOVL) Into Q2 Results

[4] How to Make Money During Market Corrections: M&A Plays

It’s certainly not reasonable to assume that NOVL’s final buyout price will be affected much by the market dropping on a given day. Therefore, on days like this I tend to buy more NOVL.

[5] Ahead Of Novell’s Q2 Report (also here)

[6] Novell, Guess Trade Higher Ahead of Earnings Reports Due After the Bell

[7] Notable Earnings After Thursday’s Close: GES, BCSI, JCG, NOVL, OVTI, SXE

Novell, Inc. (NASDAQ: NOVL) is scheduled to release its fiscal second-quarter earnings after the closing bell on Thursday, May 27, 2010. Analysts, on average, expect the company to report earnings of 7 cents per share on revenue of $204.85 million. In the year ago period, the company reported earnings of 8 cents per share on revenue of $215.60 million.

[8] Macquarie Research Sets $7.50 Price Target on Novell (Nasdaq: NOVL)

[9] Wall Street Set For Higher Start

After the markets close, Adaptec (ADPT), Diamond Foods (DMND), Guess (GES) and J Crew (JCG), Novell (NOVL) are among the major companies that are due to release their results.

[10] Novell (NOVL) Profits Rise, But Just Match Estimates

Novell Inc. (NASDAQ: NOVL) posted on Thursday fiscal second-quarter results mostly in-line with the market expectations, while also failing to impress investors with its guidance for the current quarter.

[11] Novell Inc. (NASDAQ:NOVL) Cautious

[12] Top NASDAQ Stocks to Watch (JCG, NOVL, AIG)

[13] Novell Reports a 28% Gain in Quarterly Profit

[14] Novell reports 28% profit gain

[15] Novell 2Q Profit Up 28% On Lower Expenses; Revenue, Margins Down

[16] Novell Q2 profit beats Street, sees weak Q3 rev

[17] Novell FY Q2 Revs Miss; Q3 View Below Estimates; Shrs Slip

[18] Viacom, Guess, Novell

[19] Novell Q2 Profit Rises; Guides Q3 – Quick Facts 2

[20] Novell, Inc. Reports Q2 2010 Earnings, Net Revenue Down from Last Year (NOVL) (also here)

[21] Novell 2Q Profit, 3Q Revenue View In Line With Expectations

[22] Novell Q2 Profit Rises 25%; Sees Q3 Revenue Below Consensus

[23] Novell (NOVL) Posts $19.9 Million 2nd Quarter Income

[24] After-Hours Movers 5/27: OVTI, ESL, LAVA, DITC, JCG Higher; BCSI, GES, NOVL, UPI Lower

[25] Earnings Recap: J Crew (JCG), Novell (NOVL), Blue Coat Systems (BCSI)

[26] After-Hours Earnings Roundup: GES, NOVL, JCG, BCSI, OVTI

[27] Novell posts higher 2Q profit but revenue slides (also here)

Operating costs fell 7 percent to $142.8 million.

[28] Novell Reports Q2 2010 Income of $20M

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. EPO-Bribed IAM 'Media' Has Praised Quality, Which Even EPO Staff (Examiners) Does Not Praise

    It's easy to see something is terribly wrong when the people who do the actual work do not agree with the media's praise of their work (a praise motivated by a nefarious, alternate agenda)



  2. Tux Machines is 17.5 Years Old Today

    Tux Machines -- our 'sister site' for GNU/Linux news -- started in 2004. We're soon entering 2022.



  3. Approaching 100

    We'll soon have 100 files in Git; if that matters at all...



  4. Improving Gemini by Posting IRC Logs (and Scrollback) as GemText

    Our adoption of Gemini and of GemText increases; with nearly 100,000 page requests in the first 3 days of Decembe (over gemini://) it’s clear that the growing potential of the protocol is realised, hence the rapid growth too; Gemini is great for self-hosting, which is in turn essential when publishing suppressed and controversial information (subject to censorship through blackmail and other ‘creative’ means)



  5. Links 4/12/2021: IPFire 2.27 Core Update 162 and Genode OS Framework 21.11

    Links for the day



  6. Links 4/12/2021: Gedit Plans and More

    Links for the day



  7. Links 4/12/2021: Turnip Becomes Vulkan 1.1 Conformant

    Links for the day



  8. IRC Proceedings: Friday, December 03, 2021

    IRC logs for Friday, December 03, 2021



  9. Links 4/12/2021: EndeavourOS Atlantis, Krita 5.0.0 Beta 5, Istio 1.11.5, and Wine 6.23; International Day Against DRM (IDAD) on December 10th

    Links for the day



  10. Another Gemini Milestone: 1,500 Active Capsules

    This page from Balázs Botond plots a graph, based on these statistics that now (as of minutes ago) say: “We successfully connected recently to 1500 of them.” Less than a fortnight ago more than 1,800 capsules overall were registered by Lupa, almost quadrupling in a single year



  11. [Meme] António Campinos and Socialist Posturing

    Staff of the EPO isn’t as gullible as António Campinos needs it to be



  12. António Campinos as EPO President is Considered Worse Than Benoît Battistelli (in Some Regards) After 3.5 Years in Europe's Second-Largest Institution

    The EPO's demise at the hands of people who don't understand patents and don't care what the EPO exists for is a real crisis which European media is unwilling to even speak about; today we share some internal publications and comment on them



  13. Media Coverage for Sale

    Today we're highlighting a couple of new examples (there are many other examples which can be found any day of the year) demonstrating that the World Wide Web is like a corporate spamfarm in "news" clothing



  14. Links 3/12/2021: GNU Poke 1.4 and KDDockWidgets 1.5.0

    Links for the day



  15. IRC Proceedings: Thursday, December 02, 2021

    IRC logs for Thursday, December 02, 2021



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

    Links for the day



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

    Links for the day



  18. 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



  19. IRC Proceedings: Wednesday, December 01, 2021

    IRC logs for Wednesday, December 01, 2021



  20. 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…”



  21. 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



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

    Links for the day



  23. 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



  24. [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



  25. 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



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

    Links for the day



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

    Links for the day



  28. IRC Proceedings: Tuesday, November 30, 2021

    IRC logs for Tuesday, November 30, 2021



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

    Links for the day



  30. [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


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