NOVL » Topics » Novell Reports Financial Results for Third Fiscal Quarter 2005

This excerpt taken from the NOVL 8-K filed Aug 25, 2005.

Novell Reports Financial Results for Third Fiscal Quarter 2005

WALTHAM, Mass. – August 25, 2005 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its third fiscal quarter ended July 31, 2005. For the quarter, Novell reported revenues of $290 million, compared to revenues of $305 million for the third fiscal quarter 2004. Net income available to common stockholders in the third fiscal quarter 2005 was $2 million or $0.00 earnings per diluted common share. This compared to a net income available to common stockholders of $24 million, or $0.06 per diluted common share, for the third fiscal quarter 2004.

On a non-GAAP basis, adjusted net income available to common stockholders for the third fiscal quarter 2005 was $14 million, or $0.03 per diluted common share, excluding restructuring charges of $9 million and excluding a net gain of $1 million on the sale of previously impaired long-term investments. This compares to non-GAAP adjusted net income available to common stockholders for the third fiscal quarter 2004 of $14 million, or $0.03 per diluted common share, which excluded the effect of the payment from Canopy of $19 million as a result of a legal judgment in favor of Novell, restructuring charges of $9 million and long-term investment impairments of $1 million. In the third fiscal quarter of 2004, $14 million of the Canopy payment was recorded as revenue and the remaining $5 million as interest income. Full details on Novell's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial schedules that are a part of this release.

In the third fiscal quarter 2005 as compared to the prior year's period, foreign currency exchange rates favorably impacted total revenue by approximately $4 million and did not have a material impact on net income.

During the third fiscal quarter 2005, Novell recognized Linux-related product revenue of $44 million, including $31 million from sales of Novell Open Enterprise Server (OES) and $8 million from subscriptions to SUSE™ LINUX Enterprise Server (SLES). OES revenue of $31 million reflects the first full quarter that OES was available. Sales of stand-alone subscriptions to SLES totaled 28,000 subscriptions in the quarter.

For the first nine months of fiscal 2005, Novell reported revenue of $877 million and net income available to common stockholders of $382 million, or $0.88 per diluted common share, including a $448 million net legal settlement with Microsoft. For the first nine months of fiscal 2004, which includes the Canopy payment, the company reported revenue of $865 million and net income available to common stockholders of $18 million, or $0.05 per diluted common share.

“Customers continue to embrace Novell's Linux and Identity solutions,” said Jack Messman, Chairman and CEO of Novell. “We were particularly pleased with our initial penetration of the Chinese market where Linux is an attractive technology for government and commercial users. Our increasingly customer-focused, go-to-market approach is leading to a stronger Novell as evidenced by our positive operating cash flow and growth in deferred revenue in the quarter. While we were profitable this quarter, we still have improvements to make in our business which will lead to cost reductions.”

On the balance sheet, cash and short-term investments were $1.6 billion at July 31, 2005, consistent with $1.6 billion at April 30, 2005. Days sales outstanding (DSO) in accounts receivable was 77 days at the end of the third fiscal quarter 2005, consistent with the year ago quarter. Deferred revenue was $365 million at the end of the third fiscal quarter 2005, up $28 million or 8% from the prior year. Cash flow from operations was a positive $15 million for the third fiscal quarter 2005, down from $65 million in the third fiscal quarter 2004, which included the $19 million payment from Canopy.

A summary of Novell’s vision, mission and strategy can be accessed on the Novell® Web site at: http://www.novell.com/company/ir/qresults.

This excerpt taken from the NOVL 8-K filed May 25, 2005.

Novell Reports Financial Results for Second Fiscal Quarter 2005

WALTHAM, Mass. – May 25, 2005 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its second fiscal quarter ended April 30, 2005. For the quarter, Novell reported revenues of $297 million, compared to revenues of $294 million for the second fiscal quarter 2004. Net loss available to common stockholders in the second fiscal quarter 2005 was $16 million, or a $0.04 loss per diluted common share. This compared to a net loss available to common stockholders of $15 million, or a $0.04 loss per diluted common share, for the second fiscal quarter 2004.

On a non-GAAP basis, adjusted net income available to common stockholders for the second fiscal quarter 2005 was $1 million, or $0.00 per diluted common share, which excludes $6 million of restructuring and acquired in-process research and development expenses, $1 million of long-term investment impairments and a net $11 million for income taxes related to non-GAAP adjustments. This compares to non-GAAP adjusted net income available to common stockholders for the second fiscal quarter 2004 of $14 million, or $0.03 per diluted common share, which excludes the effect of a preferred stock deemed dividend of $26 million, restructuring expenses of $5 million, investment impairments of $1 million and a $2 million gain on a sale of property, plant and equipment. Full details on Novell's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial schedules that are a part of this release.

In the second fiscal quarter 2005, foreign currency exchange rates favorably impacted total revenue by approximately $8 million year-over-year. Foreign currency exchange rates favorably impacted net income by $2 million year-over-year.

During the second fiscal quarter 2005, Novell recognized revenue of $8 million from subscriptions to SUSE™ LINUX Enterprise Server (SLES). Sales of subscriptions to SUSE LINUX Enterprise Server totaled 19,000 units in the quarter.

“Our results this quarter reflect the significant investments we are making to reposition Novell,” said Jack Messman, Chairman and CEO of Novell. “I am confident that these investments will lead to increased customer acceptance of our solid solution offerings in the Linux and Identity Driven computing segments.”

On the balance sheet, cash and short-term investments were $1.6 billion at April 30, 2005, compared with $1.7 billion at January 31, 2005. Days sales outstanding (DSO) in accounts receivable was 59 days at the end of the second fiscal quarter 2005, down from 67 days in the year ago quarter. Deferred revenue was $321 million at the end of the second fiscal quarter 2005, up $25 million or 8% year over year. Cash flow from operations was a negative $25 million for the second fiscal quarter 2005, up from a negative $28 million a year ago.

A summary of Novell’s vision, mission and strategy can be accessed on the Novell® Web site at: www.novell.com/company/ir/qresults.

This excerpt taken from the NOVL 8-K filed Feb 22, 2005.

Novell Reports Financial Results for First Fiscal Quarter 2005

WALTHAM, Mass. – February 22, 2005 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its first fiscal quarter ended January 31, 2005. For the quarter, Novell reported revenues of $290 million, compared to revenues of $267 million for the first fiscal quarter 2004. Net income available to common stockholders in the first fiscal quarter 2005 was $392 million, or $0.90 per diluted common share. This compared to net income available to common stockholders of $10 million, or $0.03 per diluted common share, for the first fiscal quarter 2004.

On a non-GAAP basis, adjusted net income available to common stockholders for the first fiscal quarter 2005 was $10 million, or $0.03 per diluted common share, which excludes a $448 million net gain on a legal settlement with Microsoft, $6 million of restructuring expense, a $2 million gain on a sale of property, $1 million of long-term investment impairments and the related adjustments for income taxes and the allocation of earnings to preferred stockholders. This compares to non-GAAP adjusted net income available to common stockholders for the first fiscal quarter 2004 of $11 million, or $0.03 per diluted common share, which excludes the effect of long-term investment impairments of $1 million. Full details on Novell's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial schedules that are a part of this release.

In the first fiscal quarter 2005, foreign currency exchange rates favorably impacted total revenue by approximately $10 million year-over-year. Foreign currency exchange rates favorably impacted net income by $2 million year-over-year.

During the first fiscal quarter 2005, Novell recognized revenue of $15 million associated with its SUSE® LINUX business including $7 million of recognized revenue from subscriptions to SUSE LINUX Enterprise Server (SLES). Sales of subscriptions to SUSE LINUX Enterprise Server totaled 21,000 units in the quarter.

“Novell made steady progress on executing its strategy this quarter. We still have work ahead of us as we continue to reposition the company in our growth markets,” said Jack Messman, Chairman and CEO of Novell. “Our solid balance sheet gives us increased financial flexibility to execute strategic initiatives in the future.”

On the balance sheet, cash and short-term investments were $1.7 billion at January 31, 2005, compared with $1.2 billion at October 31, 2004. Days sales outstanding (DSO) in accounts receivable was 59 days at the end of the first fiscal quarter 2005, down from 60 days in the year ago quarter. Deferred revenues were $343 million at the end of the first fiscal quarter 2005, up $49 million or 17% year over year. Cash flow from operations was $452 million for the first fiscal quarter 2005, up from $31 million a year ago, mainly due to the net $448 million Microsoft settlement payment.

A summary of Novell’s vision, mission and strategy can be accessed on the Novell® Web site at: www.novell.com/company/ir/qresults.

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