Bonum Certa Men Certa

Will Novell Apologise or Will Novell Conceal?

Admission of mistake versus denial

It's midnight here in the United Kingdom, so it is officially the Wednesday when Novell is expected to deliver its big report.

When Novell reports results on Wednesday afternoon, watch for $0.04 EPS. NOVL's PowerRating (for Traders) is 4.


As pointed out yesterday, Novell is likely to hide the true unhealthy state of its business. There are a variety of methods for concealing losses or diverting an investor's attention. Former Novell employee, Matt Asay, made some observations just hours ago.

They may be good changes, but word on the street is that Novell is laying people off and reorganizing its operations, apparently quite extensively (the reorg, that is, not the layoffs). A source close to the company has suggested that Novell is trying to change its model again (perhaps indicated by the news that it is overhauling its channel program), and that some very good people have been let go.


Let's wait and see how things turn out. The rumours were never encouraging and there's news about another large customer that Novell lost to Microsoft.

The DHB has already announced it will dump its current Novell Netware and GroupWise authentication, email, calendaring, scheduling, task management and personal address books in favour of Microsoft Exchange and Outlook.


Not to worry. Novell and Microsoft are partners now (the word "alliance" is used in the press. With friends like these, who needs enemies?

Jim Allchin on Novell

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