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."
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago