Bonum Certa Men Certa

Novell's Channel Breaks Further, Novell Loses Over $200,000,000 in 2009 (Fiscal)

Trolley



Summary: Novell is losing its UK distributors and there is little hope for rebound based on the financial situation and general trend

Hitherto, Novell has been pretending that Microsoft's patent deal will spell the renaissance of Novell. Not even as a Microsoft subsidiary can Novell be incarnated given that it's losing business to Microsoft. To give just one example from this week's news:



Domino’s was using Novell’s GroupWise for about 1,000 users and realized that encryption was necessary to protect the communications involving the employment information that’s transmitted between its stores and its outside benefit providers. The restaurant chain began deploying Proofpoint and Voltage’s encryption products while still on GroupWise because it planned to work with both GroupWise and Microsoft Exchange/Outlook when the company upgraded later, Anderson explains.


That's what friends like Microsoft are for.

We actually found it interesting that Novell is 'pulling a Microsoft' [1, 2, 3, 4] with a new "study" that's intended to help Novell lobby and elevate sales.

The goal of Novell's study was to find out what sort of solutions are used by the Hungarian CIOs (focusing on the large enterprises, governmental and educational institutions), if they are content with their current systems, what are the major challenges they face and in what direction do they plan to advance.


Regardless of Novell's efforts to successfully woo CIOs, its channel in the UK keeps breaking apart.

In the UK Novell has reduced its distribution by 35 percent – including the addition of Avnet in August. Veitkus says he expects its number of ‘non-performing’ resellers to shrink by roughly the same figure.


We wrote about this before. Novell's broken channel and abandonments do not help and now comes another major UK setback:

Software licensing VAR Trustmarque has cut the number of distributors it works with for 14 of its main vendor lines worth a combined €£30m annually.

Some 14 distributors bid for the business but only 10 were selected following a three-month tender process that finished last week.

Vendors covered by the tender include Citrix, Novell VMWare, McAfee, Adobe and Websense. Magirus picked up the VMware piece, Interactive Ideas bagged Novell, Arc Technology the McAfee business and e92plus the Websense segment. Other distributors to make the cut include Bell and Computer 2000.


So the future is not so bright, either. Novell's terrible financial results that we wrote about last week [1, 2] are discussed in the same publication as above. It says:

Novell has swung to a $206m (€£124m) loss for its fiscal 2009 after taking a whopping $279m impairment hit in its final quarter.


More here:

Novell Inc. NOVL said its fiscal fourth-quarter loss widened to $255.7 million, or 74 cents a share, from $16.3 million, or 5 cents a share, in the year-ago period. Excluding one-time items, the IT management software company said it would have reported earnings of 11 cents a share. Revenue fell to $215.6 million from $244.7 million last year.


And here:

Software company Novell Inc.’s (NOVL) fiscal fourth-quarter loss widened on a $279 million impairment charge and lower revenue, although revenue from its Linux-platform products increased 14%. Novell, Inc. (NASDAQ:NOVL, $4.04, +$0.13, 3.32%) dropped 1.73 percent to $3.97 on Friday morning pre-market trading session, while on Thursday, shares of Novell were up 3.32 percent and closed on $4.04.


To quote a comment on the subject:

Ron is asleep at the wheel ? No more after a few big customers ?

Submitted by atang1 on Sat, 12/05/2009 - 04:33.

When the chips are down, the CEO has to bring the big customers in? Ron Did British Telecom(security management) and Peugeot(Linux desktop) and Micropsoft paid for Linux services(bugs fixing) for their customers, then silence for years.

One has to examine one's own destiny? Miguel does not have any technology that can be turned into money?

Netbooks are changing in architecture(simple multicored cpu for realtime vs. virtualization and USB 3.0 bus), data centers are changing to triple play. Where Novel is going, nobody knows. A $billion dollar company has to size and target customers, all the time?

We are stockholders of Novl. Opinions here maybe biased.


A former employee of Novell says that "Novell's quarter crumbles" and here is just how bad it is:

In third quarter earnings news, computer networking and services company Novell (NASDAQ:NOVL) reported a loss of 74 cents per share. Analysts had expected a 7 cent per share profit.


That is a lot of money to lose in one year, especially considering the reduced expenses (layoffs and other cancellations).

Novell has reported a net loss of $256m for the fourth quarter of 2009, compared to a net loss of $16m in the same quarter last year. Revenue declined 12% to $216m.


Novell cannot go on like this forever. Is it time for Ron Hovsepian to beg again?

Ron Hovsepian begs Ballmer



Recent Techrights' Posts

A Week After a Worldwide Windows Outage Microsoft is 'Bricking' Windows All On Its Own, Cannot Blame Others Anymore
A look back at a week of lousy press coverage, Microsoft deceit, and lessons to be learned
 
Links 26/07/2024: Hamburgerization of Sushi and GNU/Linux Primer
Links for the day
Links 26/07/2024: Tesco Cutbacks and Fake Patent Courts
Links for the day
Links 26/07/2024: Grimy Residue of the 'AI' Bubble and Tensions Around Alaska
Links for the day
Gemini Links 26/07/2024: More Computers and Tilde Hosting
Links for the day
Links 26/07/2024: "AI" Hype Debunked and Elon Musk's "X" Already Spreads Political Disinformation
Links for the day
"Why you boss is insatiably horny for firing you and replacing you with software."
Ask McDonalds how this "AI" nonsense with IBM worked out for them
No Olympics
We really need to focus on real news
Nobody Holds the GNOME Foundation Accountable (Not Even IRS), It's Governed by Lawyers, Not Geeks, and Headed by a Shaman Crank
GNOME is a deeply oppressive institutions that eats its own
[Meme] The 'Modern' Web and 'Linux' Foundation Reinforcing Monopolies and Cementing centralisation
They don't care about the users and issuing a few bytes with random characters costs them next to nothing. It gives them control over billions of human beings.
'Boiling the Frog' or How Online Certificate Status Protocol (OCSP) is Being Abandoned at Short Notice by Let's Encrypt
This isn't a lack of foresight but planned obsolescence
When the LLM Bubble Implodes Completely Microsoft Will be 'Finished'
Excuses like, "it's not ready yet" or "we'll fix it" won't pass muster
"An escalator can never break: it can only become stairs"
The lesson of this story is, if you do evil things, bad things will come your way. So don't do evil things.
When Wikileaks Was Still Primarily a Wiki
less than 14 years ago the international media based its war journalism on what Wikileaks had published
The Free Software Foundation Speaks Out Against Microsoft
the problem is bigger than Microsoft and in the long run - seeing Microsoft's demise - we'll need to emphasise Software Freedom
IRC Proceedings: Thursday, July 25, 2024
IRC logs for Thursday, July 25, 2024
Over at Tux Machines...
GNU/Linux news for the past day
Links 26/07/2024: E-mail on OpenBSD and Emacs Fun
Links for the day
Links 25/07/2024: Talks of Increased Pension Age and Biden Explains Dropping Out
Links for the day
Links 25/07/2024: Paul Watson, Kernel Bug, and Taskwarrior
Links for the day
[Meme] Microsoft's "Dinobabies" Not Amused
a slur that comes from Microsoft's friends at IBM
Flashback: Microsoft Enslaves Black People (Modern Slavery) for Profit, or Even for Losses (Still Sinking in Debt Due to LLMs' Failure)
"Paid Kenyan Workers Less Than $2 Per Hour"
From Lion to Lamb: Microsoft Fell From 100% to 13% in Somalia (Lowest Since 2017)
If even one media outlet told you in 2010 that Microsoft would fall from 100% (of Web requests) to about 1 in 8 Web requests, you'd probably struggle to believe it
Microsoft Windows Became Rare in Antarctica
Antarctica's Web stats still near 0% for Windows
Links 25/07/2024: YouTube's Financial Problem (Even After Mass Layoffs), Journalists Bemoan Bogus YouTube Takedown Demands
Links for the day
Gemini Now 70 Capsules Short of 4,000 and Let's Encrypt Sinks Below 100 (Capsules) as Self-Signed Leaps to 91%
The "gopher with encryption" protocol is getting more widely used and more independent from GAFAM
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 24, 2024
IRC logs for Wednesday, July 24, 2024
Techrights Statement on YouTube
YouTube is a dying platform
[Video] Julian Assange on the Right to Know
Publishing facts is spun as "espionage" by the US government and "treason" by the Russian government, to give two notable examples
Links 25/07/2024: Tesla's 45% Profit Drop, Humble Games Employees All Laid Off
Links for the day
Gemini Links 25/07/2024: Losing Grip and collapseOS
Links for the day