Novell's Revenue Sags, Linux Business Soars

By Steven Vaughan-Nichols  |  Posted 2007-03-02 Email Print this article Print

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Overall, Novell's business weakened, but there was one bright, shining spot: Linux.

It's hard to say exactly what's happening with Novell's earnings, while it continues to audit its past stock-option practices. Still, while awaiting the results from the audit committee, Novell on March 1 announced preliminary financial results for its 2007 fiscal year first quarter, showing net revenue of $230 million.

The first quarter's revenue represented a decline of $12 million, or about 5 percent, from the prior year's first quarter revenue of $242 million.

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The loss available to common stockholders from continuing operations in the latest reported quarter was $20 million, or $0.06 loss per common share. This compares to income available to common stockholders from continuing operations of $4 million, or $0.01 per diluted common share, for the first fiscal quarter 2006.

Despite the unexceptional overall results during the first fiscal quarter 2007, Novell reported $15 million of revenue from Linux Platform Products, up 46 percent year-over-year, and $91 million of invoicing, up a whopping 659 percent year-over-year. Linux—make no doubt about it—is Novell's future.

The revenue from Novell's identity and access management was $24 million, down 7 percent from the prior fiscal year's first quarter. Combined revenue from Open Enterprise Server and products related to NetWare declined 18 percent from the year-ago period.

Read the full story on Novell's Revenue Sags, Linux Business Soars

Steven J. Vaughan-Nichols is editor of's Linux & Open Source Center and Ziff Davis Channel Zone. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.


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