Novell turned in lower than expected first quarter results last week.
The company posted revenues of $375 million (#234) for its first quarter ended 31 January, compared to revenues of $438 million for the same period last year. Net profits were $51 million, or 15 cents a share, down from $64 million.
Novell attributed the drop to the loss of income from product lines it has now sold off, notably UnixWare and WordPerfect, and said the revenues exceeded internal targets of $365 million.
However, financial analysts were less enthusiastic. The results failed to meet their average predictions of 18 cents a share and Novell's share price remained stagnant, hovering at $12 7/8 cents.
Andrew Sadler-Smith, sales director of Novell UK and Ireland, blamed the decline in part on poor performances in Japan and continental Europe. However, he said the company had showed strong growth in the UK, with a 40% increase in sales of NetWare 4 and IntranetWare.
"People are trying to run NT on the whole network and finding its not the solution," he claimed. "The reality is now cutting through the hype."
Graham Opie, an analyst at Spikes Cavell, said: "These results are pretty satisfactory." He added that Novell can expect improvements in the coming year, as IntranetWare grows and moves to integrate NDS (Novell Directory Services) with NT bear fruit. "The acid test will be later this year," Opie warned. "Novell has got its act together, but whether it's too late or not we'll see."
Neil Martin of Panda Security discusses Epic Games' decision to avoid the Google Play Store in its Android release of its popular game Fortnite
Musk went public on privatisation plan "because I felt it was the right and fair thing to do so"
Intel's 9th generation Core CPUs will be released on 1 October along with Z390 motherboards
Short-sellers burnt by Musk's "false and misleading" tweets the first to file suit