Novells Earnings Fall Short

Novell announced disappointing financial results Thursday 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.

For practical purposes, this came to no earnings or loss per diluted common share.

In the third quarter of 2004, Novell realized net income available to stockholders of $24 million, or 6 cents per diluted common share.

On a non-GAAP (Generally Accepted Accounting Principles) basis, however, the adjusted net income available to common stockholders for the quarter was $14 million, or cents per diluted common share.

This compares to non-GAAP adjusted net income for last years third quarter of $14 million, or 3 cents per diluted common share.

Read more here about Novells third-quarter fiscal results.

Those results had excluded a payment from The Canopy Group Inc. 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.

The payment from Canopy Group Inc., former parent company of The SCO Group Inc., has nothing to do with the current litigation between Novell and SCO.

To read more about the dispute over Canopys management, click here.

Instead, it was for a breach of contract lawsuit over how the revenues should be split between Canopy and Novell from the money paid by Microsoft in its 2000 settlement for its actions against the DR-DOS operating system.

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