Novell's Linux Income Increases
The company is looking to the channel to accelerate its Linux growth.After an unexpected delay of eight days, Novell finally announced its financial results for its fourth fiscal quarter and 2007 fiscal year, which ended Oct. 31, 2007. Novell reported net revenue for the overall year of $932 million, a loss of $26 million or 8 cents per share, although the company also reported 69 percent growth in its core Linux products. The delay in Novell's results was caused by an SEC (Security and Exchange Commission) investigation into the company's financial statements. After completing the investigation, the SEC did not require Novell to make any changes to those statements, allowing the company to release its delayed financial results.
While Novell's net income went up from 2006's $919 million to $932 million in 2007, the Linux distributor showed a net loss of $26 million. The key reason appears to be that Novell is still restructuring from being a direct sales software and services company to being one that focuses on software and channel sales.