Bonum Certa Men Certa

What Novell's Financial Performance Means for Its Future

Here is a quick point-by-point roundup of the effects Novell's results are likely to have.

Buybacks



This report comes from CNN. Friday didn't treat Novell any better than Thursday.

Shares of Novell fell Friday morning after the business software developer swung to a fourth-quarter loss, partly because of the sale of a consulting unit.

Shares shed 25 cents, or 8.5 percent, to $6.85 after the opening bell.

[...]

"After a year of solid improvement across a number of fronts, we believe Novell (NOVL) needs to augment its progress by using part of its $1.3 billion in net cash for a buyback program, which would help accelerate earnings per share growth into 2008-2009 and create a support level for the shares," Materne said in a client note.


We mentioned buybacks on several occasions before, the context being Microsoft, Novell, and SCO [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11]. Buybacks are of course a sign of weakness, no matter how companies want to characterise (spin) them.

Where is the UBS analyst who enthusiastically predicted growth? Analysts are paid to say what the companies which hire them want to be said.

Overhaul



The restructuring costs at Novell are yet to take effect.

Novell (NOVL 7.10) reported better than expected results for the fourth quarter; however, the business software maker also issued tepid guidance and said it expects to incur additional costs from its ongoing restructuring efforts, sending shares more than 9% lower in pre-market activity.


Layoff Costs



Here is the article from the 'local' press:

Layoff costs spur loss for Novell in fourth quarter

The job custs are part of a plant to improve profitability by moving work to less expensive countries such as India and selling more products over the phone and Internet. Novell said revenue this coming year will miss estimates because it is shifting some consuting work to partners.


There are quite a few typos in this article. Maybe they are just as sloppy as myself (poor habits of proofreading).

Savings and Debts



Motley Fool, which is affiliated with Microsoft, has this to say about Novell:

Novell has amassed enough cash that you start to wonder what it plans to do with the riches. But don't expect it to pay back debt any time soon; Novell made $23 million off its investments this quarter, and those senior debentures with a low, low 0.5% coupon rate don't mature for another 17 years.


Don't forget about Novell's ongoing (and prior) financial troubles.

Microsoft Dependency



Several months ago, when Novell filed its redacted disclosure, Larry Dignan concluded that Novell had become Microsoft dependent. Nothing has changed since. Here is the latest from Larry:

To be sure, Novell is still dependent on Microsoft. A year into Novell’s five-year agreement with Microsoft, the company has invoiced more than half of the $240 million deal. Novell has added 4,700 customers in the last year.


Chances of Novell escaping this deal with Microsoft are growing smaller by the day. Novell can, in some sense, be seen as Microsoft subsidiary.

Microsoft (SUSE) Coupons



In LinuxInsider, Novell's rise in sales is rightly described as "initial". It's all about the coupons, which are bound to run out.

"The Microsoft deal provided an initial boost to Novell's Linux sales, but what's going to allow it to position itself as a credible alternative to Red Hat is internal execution and a sharper focus," Tillman said.


Novell has been comparing its current quarters to previous quarters that predate the Microsoft deal. The next bunch of quarterly reports will therefore be particularly interesting to watch.

Recent Techrights' Posts

Microsoft ("a Dying Megacorporation that Does Not Create") and IBM: An Era of Dying Giants With Leadership Deficits and Corporate Bailouts (Subsidies From Taxpayers)
Microsoft seems to be resorting to lots of bribes and chasing of bailouts (i.e. money from taxpayers worldwide)
Daniel Pocock: "I've Gone to Some Lengths to Demonstrate How Corporate Bad Actors Have Used Amateur-hour Codes of Conduct to Push Volunteers Into Modern Slavery"
"As David explains, the Codes of Conduct should work the other way around to regulate the poor behavior of corporations who have been far too close to the Debian Suicide Cluster."
 
[Video] 'Late Stage Capitalism': Microsoft as an Elaborate Ponzi Scheme (Faking 'Demand' While Portraying the Fraud as an Act of Generosity and Demanding Bailouts)
Being able to express or explain the facts isn't easy because of the buzzwords
Links 18/05/2024: Caledonia Emergency Powers, "UK Prosecutor's Office Went Too Far in the Assange Case"
Links for the day
US Patent and Trademark Office Sends Out a Warning to People Who Do Not Use Microsoft's Proprietary Formats
They're punishing people who wish to use open formats
Links 18/05/2024: Fury in Microsoft Over Studio Shutdowns, More Gaming Layoffs
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 17, 2024
IRC logs for Friday, May 17, 2024
Links 18/05/2024: KOReader, Benben v0.5.0 Progress Update, and More
Links for the day
Microsoft-Connected Sites Trying to Shift Attention Away From Microsoft's Megebreach Only Days Before Important If Not Unprecedented Grilling by the US Government?
Why does the mainstream media not entertain the possibility a lot of these talking points are directed out of Redmond?
[Meme] UEFI 'Secure' Boot Boiling Frog
UEFI 'Secure' Boot: You can just ignore it. You can just turn it off. You can hack on it as a workaround. Just use Windows dammit!
The Market Wants to Delete Windows and Install GNU/Linux, UEFI 'Secure' Boot Must Go!
To be very clear, this has nothing to do with security and those who insist that it is have absolutely no credentials
In the United States Of America the Estimated Share of Google Search Grew After Microsoft's Chatbot Hype (Which Coincided With Mass Layoffs at Bing)
Microsoft's chatbot hype started in late 2022
Techrights Will Categorically Object to Any Attempts to Deny Its Right to Publish Informative, Factual Material
we'll continue to publish about 20 pages per day while challenging censorship attempts
Links 17/05/2024: Microsoft Masks Layoffs With Return-to-office (RTO) Mandates, More YouTube Censorship
Links for the day
YouTube Progresses to the Next Level
YouTube is a ticking time bomb
Journalists and Human Rights Groups Back Julian Assange Ahead of Monday's Likely Very Final Decision
From the past 24 hours...
[Meme] George Washington and the Bill of Rights
Centuries have passed since the days of George Washington, but the principles are still the same
Video of Richard Stallman's Talk From Four Weeks Ago
2-hour video of Richard Stallman speaking less than a month ago
statCounter Says Twitter/X Share in Russia Fell From 23% to 2.3% in 3 Years
it seems like YouTube gained a lot
Journalist Who Won Awards for His Coverage of the Julian Assange Ordeals Excluded and Denied Access to Final Hearing
One can speculate about the true reason/s
Richard Stallman's Talk, Scheduled for Two Days Ago, Was Not Canceled But Really Delayed
American in Paris
3 More Weeks for Daniel Pocock's Campaign to Win a Seat in European Parliament Elections
Friday 3 weeks from now is polling day
Microsoft Should Have Been Fined and Sanctioned Over UEFI 'Lockout' (Locking GNU/Linux Out of New PCs)
Why did that not happen?
Gemini Links 16/05/2024: Microsoft Masks Layoffs With Return-to-office (RTO) Mandates, Cash Issues
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 16, 2024
IRC logs for Thursday, May 16, 2024
Ex-Red Hat CEO Paul Cormier Did Not Retire, He Just Left IBM/Red Hat a Month Ago (Ahead of Layoff Speculations)
Rather than retire he took a similar position at another company
Linux.com Made Its First 'Article' in Over and Month, It Was 10 Words in Total, and It's Not About Linux
play some 'webapp' and maybe get some digital 'certificate' for a meme like 'clown computing'
[Meme] Never Appease the Occupiers
Freedom requires truth. Free speech emancipates.
Thorny Issues, Violent Response
They say protests (or strikes) that do not disrupt anything are simply not effective. The same can be said about reporting.
GNU/Linux in Malaysia: From 0.2 Percent to 6+ Percent
That's like 30-fold increase in relative share
Liberty in Liberia? Windows Falls Below 10% and Below iOS
This is clearly a problem for Microsoft
Techrights Congratulates Raspberry Pi (With Caution and Reservations)
Raspberry Pi will "make or break" based on the decisions made in its boardroom
OSI Makes a Killing for Bill Gates and Microsoft (Plagiarism and GPL Violations Whitewashed and Openwashed)
meme and more
The FSF Ought to Protest Against UEFI 'Secure Boot' (Like It Used To)
libreplanet-discuss stuff
People Who Defend Richard Stallman's Right to Deliver Talks About His Work Are Subjected to Online Abuse and Censorship
Stallman video removed
GNU/Linux Grows in Denmark, But Much of That is ChromeOS, Which Means No Freedom
Google never designs operating systems with freedom in mind
Links 16/05/2024: Vehicles Lasting Fewer Years, Habitat Fragmentation Concerns
Links for the day
GNU/Linux Reaches 6.5% in Canada (Including ChromeOS), Based on statCounter
Not many news sites are left to cover this, let alone advocate for GNU/Linux
Links 16/05/2024: Orangutans as Political Props, VMware Calls Proprietary 'Free'
Links for the day
The Only Thing the So-called 'Hey Hi Revolution' Gave Microsoft is More Debt
Microsoft bailouts
TechTarget (and Computer Weekly et al): We Target 'Audiences' to Sell Your Products (Using Fake Articles and Surveillance)
It is a deeply rogue industry that's killing legitimate journalism by drowning out the signal (real journalism) with sponsored fodder
FUD Alert: 2024 is Not 2011 and Ebury is Not "Linux"
We've seen Microsofers (actual Microsoft employees) putting in a lot of effort to shift the heat to Linux
Links 15/05/2024: XBox Trouble, Slovakia PM Shot 5 Times
Links for the day
Windows in Times of Conflict
In pictures
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 15, 2024
IRC logs for Wednesday, May 15, 2024