Novell Revenues, Linux Business Slide
May 28, 2010, 18:32 (0 Talkback[s])
(Other stories by Sean Michael Kerner)
[ Thanks to James Maguire for this link. ]
"It's been a tough quarter quarter for Novell (NASDAQ: NOVL) as questions about its future ownership remain on the table. Novell is also facing pricing pressure on its Linux business as renewals come up on Microsoft's SUSE Linux Enterprise subscriptions.
"Novell this week reported its second-quarter fiscal 2010 earnings, showing a decline in revenue, whihc came in at $204 million for the quarter, a drop from the $216 million it brought in a year earlier. On the positive side, net income hit $20 million or $0.06 per share, which is an improvement over the $16 million or $0.05 per share Novell reported for the second quarter of 2009.
"But the slide in revenue continues for Novell, which provided third-quarter revenue guidance for revenues between $205 million and $210 million.
"A closely watched portion of Novell's income hinges on its Linux business. But CFO Dana Russell reported that the company's Linux platform product revenue decreased by 4 percent on a year-over-year basis, hitting the $35 million mark."