08.11.10
Novell Dogged by Expectations of Its Sale, Results to Disappoint
Summary: Novell is informing investors and clients in advance that its financial results will be terrible
ACCORDING to this new press release from Novell, there are tough times over there. As Reuters puts it [1, 2]:
Business software maker Novell Inc (NOVL.O) cut its third-quarter revenue outlook due to customer uncertainty surrounding its plan to explore strategic alternatives, including a sale of itself.
In March, the company spurned a $2 billion takeover offer from investment fund Elliott Associates, calling the bid inadequate. Its board instead decided to review alternatives, including a share buyback, cash dividend, joint ventures, recapitalization, alliances or an outright sale.
Timothy Prickett Morgan has an excellent article about it. “What a surprise,” he writes, “A company rejects an unsolicited takeover bid and its board of directors announces that the struggling company is looking at all alternatives, including selling itself or breaking itself up. And then sales unexpectedly go south.”
The Wall Street Journal speaks about customer uncertainty and this is also covered in:
- Novell lowers fiscal 3rd-quarter outlook
- Novell Chops FY Q3 Outlook
- Novell Lowers Q3 Revenue Guidance – Quick Facts
- Novell lowers fiscal 3rd-quarter outlook
- Novell Cuts Q3 Revenue Outlook – Quick Facts
- Novell Gaps Lower on Revenue Warning
- Novell lowers third quarter sales forecast
- After-Hours Movers: NOVL, UAUA, VLTR
- Novell Guides Lower
- Novell Inc. (NOVL) Gets Bearish Confirmation
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- Price Alert for Novell Inc. (NOVL)
Jefferies says: “we remain concerned over the company’s deteriorating fundamentals and pace of customer defection.” █
