Bonum Certa Men Certa

Final Analysis of Novell's Q1 Results and Consequences

Novell cafe



Summary: More evidence that Novell suffers from the Microsoft deal, but the company's CEO takes bonuses

ACCORDING TO "The Var Guy", who has been in good touch with Novell for over a year, Novell is heading down.

Check out the one-year stock charts for Novell (NOVL) and Red Hat (RHT). Neither chart is particularly impressive, but the trends are unmistakable. As the economy went from bad to worse in calendar year 2008, Wall Street lost more and more faith in Novell. In stark contrast, sometime in late November 2008 — amid heightened credit crunch concerns — financial pundits started betting heavier and heavier on Red Hat shares.


The comments in Linux Today show that many GNU/Linux users are actually encouraged by Novell's demise. Here is one response to Novell's excuses:

Maybe the business world really does not want to do business with Novell. Maybe business customers really do think about the implications of Novell's deal with Microsoft.


In addition to what we've already referenced, here are some more financial analyses:



One issue that we have looked at before is the excessive bonuses that Ron Hovsepian is receiving [1, 2, 3]. The following essay is dedicated to this problem.

What Novell Could Learn From HP About How to Treat Employees



[...]

[C]ontrast this with the recent announcements of layoffs at Massachusetts-based software vendor Novell. Earlier this month, they laid off approximately 100 employees due to a "global economic downturn." I have to wonder how many of those jobs could have been saved if Novell CEO Ron Hovsepian had declined to accept the sum total of his $6.9 million compensation package last year.

I mean, it's not as if he didn't see the potential for layoffs coming. In a December 4, 2008, conference call with analysts he is quoted as saying, "I think we are just evaluating at this point any additional restructures or activities that may take place in 2009, and those would be largely dependent on the overall economic condition and its impact to our revenues, if any."

In other words, the writing was on the wall late last year but he still grabbed his share of the pie.


Ron Hovsepian will find it hard to dodge criticism, which now comes from IDG as well. Financial News USA covered it also.

Ronald Hovsepian, the president and chief executive of networking software maker Novell Inc., received a compensation package valued at nearly $6.9 million, according to a proxy statement filed Wednesday. The total was down more than 5 percent from Hovsepian's 2007 compensation of nearly $7.3 million.Hovsepian, who has served as CEO of Waltham, Mass.-based Novell since 2006, received a base salary of $912,214 and $2 million in cash incentive plan compensation, according to a filing with the Securities and Exchange Commission.His perquisites totaled $137,014 and included $9,200 in 401(k) contributions from the company, $112,244 in deferred compensation matching contributions and $6,263 for financial planning.


What is he being rewarded for?

In other financial news, Novell's CFO will present at Morgan Stanley's 2009 Technology Conference.

Novell, Inc. (NASDAQ: NOVL) today announced that Dana Russell, Senior Vice President and Chief Financial Officer of Novell, will present at the Morgan Stanley 2009 Technology Conference, March 2-4, 2009 at the Palace Hotel in San Francisco. Russell's presentation will begin at 2:20pm PST on Tuesday, March 3.


There was also a delay.

Company representatives of Novell Inc will be presenting at the 2009 Morgan Stanley Technology Conference today. The Company's presentation is scheduled to begin at 17:20 ET.


Novell was also mentioned very briefly in the financial press under:



In its conversations last week, Novell confirmed that layoffs are coming, but it used cryptic terminology to 'dress up' the statement. Novell cannot operate at a loss forever. It can only delay the inevitable.

Comments

Recent Techrights' Posts

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."
 
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