Novell Q3 loss widens

Mon. September 01, 2008; Posted: 05:06 AM

Sep 01, 2008 (Datamonitor via COMTEX) -- NOVL | Quote | Chart | News | PowerRating -- Novell has reported a net loss of $15.12m for the third quarter 2008, against a loss of $3.67m a year ago, on revenue up 4% at $245m. The loss was attributed to an impairment charge related to auction-rate securities.

The market for auction-rate securities, a form of corporate debt, collapsed in February amid the downturn in the broader credit markets.

Operating income during the quarter increased to $0.97m compared to the operating loss of $10.11m in the year-ago quarter.

It said, software license revenue rose 19% to $53.4m, maintenance and subscription revenue increased 8% to $154.98m, while services revenue fell 25% to $36.79m. Revenue growth was attributed to an increase in sales of Linux software.

Open platform revenue grew 30% to $32.5m, while identity and security management revenue rose 15% to $36.87m. Systems and resource management revenue grew 25% to $47.38m, while workgroup revenue fell 1% to $91.62m.

Ron Hovsepian, president and chief executive at Novell, said: "We had another quarter of strong product revenue growth and expanding operating margins. Our transformation of the company positions us well to focus on sustained growth in 2009."

For fiscal 2008, Novell expects revenue between $940m and $970m and a non-GAAP operating margin between 8% and 10%.

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For full details on Novell Inc (NOVL) click here. Novell Inc (NOVL) has Short Term PowerRatings of 6. Details on Novell Inc (NOVL) Short Term PowerRatings is available at This Link.

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