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Novell: Linux Breaks Even as Microsoft Deal Revenues Wane

Feb 27, 2010, 04:02 (1 Talkback[s])
(Other stories by Sean Michael Kerner)

"Novell (NYSE: NOVL) executives said this week that it's seven-year-old Linux business has finally broken even -- making good on promises made a year ago.

"But it hasn't been an easy trek to begin making money off of Linux, and one factor may way against Novell's Linux business going forward: The waning revenue from its landmark 2006 agreement with Microsoft to begin reselling Linux support subscriptions.

"This week, Novell reported its first-quarter fiscal 2010 earnings for the quarter ending on Jan. 31. Net revenues came in at $202 million, a decline from the $215 million reported for the first quarter of 2009.

"On the net income side, things are a bit brighter. Novell reported GAAP net income of $20 million, or $0.06 per share, an increase over the $11 million or $0.03 per share it reported for the first quarter of 2009."

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