Novell has suffered a big drop in fourth quarter revenues, resulting from the sale of its UnixWare and WordPerfect businesses.
Revenues for the quarter ended 26 October were $384 million (#229 million), way down on the $481 million it reported for the same period last year.
Novell noted that the 1995 fourth quarter included contributions from UnixWare and WordPerfect, which are now owned by SCO and Corel respectively.
Year-on-year, revenues decreased from $2 billion to $1.4 billion. Net income was also down for the year, falling to $126 million from $338 million in 1995. Net income for the final quarter was $59 million, the same as last year.
Despite the results, Novell chairman John Young was in an upbeat mood.
"We're pleased the business changes Novell has been implementing all year are having their effect on financial results," he said.
Looking ahead to the future, Young said Novell was moving through a transition period to address the Internet and intranet markets. "Our actions continue to be directed at energising the company for profitable revenue growth," he said.
Novell reported revenue growth of 5% between the third and fourth quarter of 1996. "The sequential gain in fourth quarter revenue was driven by strong market demands for new versions of our major products," said president Joseph Marengi.
He added that total server software sales were up 15% to $247 million, the bulk of which came from sales of IntranetWare, which accounted for $181 million.
IntranetWare is a new release of NetWare which gives LAN users access to the Internet.
It includes Novell Web Server 2.5, Netscape Navigator browser, Internet connectivity and integrates with NDS, Novell's global directory service.
IntranetWare began shipping on 10 October, just two weeks before the end of Novell's fourth quarter.
Tom Schuster, vice president for Novell UK, Middle East and Africa, said: "We were surprised at the extent of the take-up. We did not anticipate the overwhelming impact."
He added that within two months of it shipping, IntranetWare accounted for 93% of all Novell products sold in the UK: "It is good to see Europe leading the world in acceptance of this new technology.
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