Bonum Certa Men Certa

Novell Falls 5% After News of Lowered Sales, Key Products Failing to Produce Profit

Novell Q2 2009



Summary: Novell's revenue is down, expenses are down, and more cutbacks are said to be needed

A MORE comprehensive analysis will come tomorrow, but here are some quick findings about Novell's latest results, which obviously it is trying to spin (all companies do).



This morning's article from Timothy is probably the best so far as the author is typically isolated from marketing bias and mindless flocking which cascades down from press release that are selective by design.

For its quarter ended April 30, Novell sales fell by 8.5 per cent to $215.6m. But because it has been tightening the belt and it had a pretty bad corresponding quarter last fiscal year, bringing $15m to the bottom line looked good by contrast. Nonetheless, Novell has a ways to go before it is as profitable as it needs to be or investors want it to be, and as it turns out, key product lines are not profitable.

[...]

Novell booked $7m in restructuring charges in the quarter, and its headcount was the same as it was at the end of the last quarter, with 3,900 employees. Russell said that in a normal fiscal year, the second half usually sees a revenue bump, but he warned that sales could stay flat quarter to quarter (as they did so far in fiscal 2009), and that means Novell is going to be under pressure to cut costs to keep in the black.


From Seeking Alpha:

# Novell (NOVL) Q2 EPS of 5 cents misses by 1 cent. Q2 revenue $216M vs. consensus of $218M.


More here:

Software service provider Novell Inc. (NOVL) said its second quarter profit jumped from a year ago as expenses declined, despite an 8.5% fall in revenues reflecting a huge drop in software licenses and services revenue. On an adjusted basis, earnings came in above Street estimates, while revenues fell short.


Novell's SLE* business is still growing, but it is not growing fast enough to keep Novell afloat in its current scale.

The software provider achieved revenue of $216m (€£134m), down from $236m in the same period last year. Net income was up to $16m from $6m in 2008.


Well, they laid people off and cut expenses associated with luxuries like BrainShare. It's worth noting that the whole of Novell's income combined is about twice that of Ron Hovsepian's bonus for 2008. And that's just one person's bonus, to put things in perspective. There is no recession for the CEO's household/family.

According to this, "Novell, Inc. closed yesterday up 1.37% on over 6.7 million shares traded." But today it goes down sharply, unlike the market as a whole. Novell (NOVL) fell as low as $2.5 some months ago. To quote:

Novell, Inc (NOVL) in the last one year traded as high as $7.10 in May 2008 and as low as $2.49 in March 2009. Based on the yesterday’s closing price $4.43 the company has market cap of $1.53 billion.


NOVL is still considered a stock to watch today.

Friday's biggest gaining and declining stocks

Companies whose shares are expected to see active U.S. trading on Friday include General Motors, Dell, Novell and Office Depot.


A new report about NOVL (SADIF Analytics) says that "Novell, Inc. is an average quality company with a positive outlook. Novell, Inc. has weak business growth and is run by efficient management. When compared to its closest peer, MICROS Systems, Inc., Novell, Inc. shows similar overvaluation and is equally likely to outperform the market."

Well, Sun was acquired and it amasses huge losses. This comparison does not work in Novell's favour.

Recent Techrights' Posts

Confirmed in the Mainstream Media: A Lot of Microsoft "Workloads" Were Just LLM Slop (Helping to Fake Growth for Years, as Microsoft Had Paid "Open" "AI" to Become a "Client") and Demand is Rapidly Waning, Datacentres Canceled and/or Shut Down
Anything to facilitate further accounting fraud
Taiwan's Media Covers Closure of Microsoft's "AI" Lab, It's Time to Talk About the Gradual Death of Windows and Implosion of the "AI" Bubble
Earlier this week we showed that mostly Asian media had the 'nerve' to mention Microsoft silently shutting down its 'AI' lab
More Gains for GNU/Linux, Based on Web Surveys
the Steam site shows rapid growth for "Linux" this month
 
StatCounter: Microsoft is Masking a Disaster, It's Way Behind DeepSeek Already and Interest in LLMs Has Waned
it turns out the money "raised" for "Open" "AI" may not even exist at all
Links 03/04/2025: SoftBank Money for Microsoft "Open" "AI" Probably Doesn't Even Exist, Wikimedia Foundation Blasts LLM Nuisance While Microsoft Admits Demand Has Shrunk
Links for the day
Gemini Links 03/04/2025: Patch Panel and Pictures
Links for the day
Islamic Republic of Iran: GNU/Linux at All-time High This Month, Windows Falls to 12%
Vista 10 is up this month despite being "end of life" (EoL) soon
Indonesia: All-Time Highs for GNU/Linux
What's noteworthy right now is the growth of GNU/Linux
statCounter Says GNU/Linux Usage is Up Again (Internationally)
some preliminary April data
Only on April 1st Can the Free Software Foundation Associate With Microsoft's Open Source Initiative (OSI)
We saw some pranks that day linking the FSF to Microsoft (e.g. "endorsing" Windows)
IBM Gets Rid of Kelly Chambliss as Mass Layoffs Reported in IBM Consulting, IBM Loses Key Contracts/Graft
IBM Consulting has been in disarray lately
Slopwatch: Anti-Linux Articles, Not Even Written by Humans
Why aren't Web sites more vocal about this problem?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 02, 2025
IRC logs for Wednesday, April 02, 2025
Links 03/04/2025: Apple Fined Over Secret Surveillance, "Elegant Writer For A More Civilized Age"
Links for the day
Gemini Links 02/04/2025: Books and Cold Tea
Links for the day
Links 02/04/2025: More Layoffs, Nokia Again Takes Advantage of Illegal and Unconstitutional Patent Court With Nokia Staff as 'Judges'
Links for the day
Links 02/04/2025: Seizures and Returns to Windows of 24 Years Ago
Links for the day
LLM Slop Helps Obscure and Distort News About Layoffs (IBM, GAFAM)
It's hard to find accurate information
Links 02/04/2025: Microsoft Developers Are Threatening to Go on Strike, World Backup Day Noted
Links for the day
Gemini Protocol Has Growing Appeal (the Web Got Too Bloated and Full of LLM Slop)
For any "data plan" with bandwidth limits or "tiers" it would be cheaper to use/browse Geminispace
The Web Can Survive LLM Slop, But Only If We Collectively Shun and Discourage Serial Sloppers
Doing nothing ought not be a possibility
Amid Secret Shut-downs and Mass Layoffs at Microsoft (4 Waves of Layoffs in 3 Months of 2025) Some Microsoft Staff Expected to Go On Strike
workers going on strike
Gemini Links 02/04/2025: No more on Mastodon and Gemini Mention Script in Go
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 01, 2025
IRC logs for Tuesday, April 01, 2025
My Motion Disbarring or “Striking Off” Brett Wilson LLP for Enabling Violent Americans Who Try to Crush Microsoft Critics in the United Kingdom by Multiple SLAPPs
"Guns for hire" (for Microsoft people who received Microsoft salaries)
The U.S. Patent and Trademark Office Hijacked Again by Patent Litigation Industry, as President Cheeto Prioritises Aggressors
The "mafia" has taken over the "industry" and the Federal system (justice and constitutions trampled upon)
Ubuntu Slop and FUD Manufactured With LLMs and Funded (by Oneself) 'Studies'
Slop and FUD are ruining the Web
Gemini Links 01/04/2025: Games and More
Links for the day
Links 01/04/2025: Apple Fined $162M for Privacy Abuses, Disinformation Online a Growing Concern
Links for the day
Why We're Reporting Brett Wilson LLP for Apparently Misusing Their Licence to Protect American Microsofters Who Attack Women
For those who have not been keeping abreast
Newer Press Reports Confirm That Microsoft Shuts Down 'Hey Hi' (AI) Labs Despite All the Hype
The "hey hi" (AI) bubble is not sustainable
Links 01/04/2025: Mass Layoffs at Eidos and "Microsoft Pulls Back on Data Centers" (Demand Lacking); "Racist and Sexist" Slop From Microsoft
Links for the day
Stefano Maffulli and His Microsoft-Funded OSI Staff Are Killing the OSI and Killing "Open Source" (All for Money!)
This is far from over
Gemini Links 01/04/2025: XKCDpunk and worldclock.py
Links for the day
50 Years of Sabotage and a Gut Punch to Computer Science (and Science in General)
Will we get back to science-based computing rather than cult-like following?
Techrights Headlines as Semaphore
"If you are hearing this, thank you"
3 Months in 2025, 4 Waves of Mass Layoffs at Microsoft, Now Offices Shut Down Permanently
"A recent visit by the South China Morning Post confirmed that the office was dark, unoccupied, and had its logo removed."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 31, 2025
IRC logs for Monday, March 31, 2025