Novells Profits Rise as Revenue Falls

A small net profit isn't enough for some stock owners and Novell's Linux growth appears stagnant.

On May 31, Novell had both good and bad news for its investors as it announced a net profit of $3 million, or $0.01 per diluted common share, for its second fiscal quarter that ended April 30, 2006.

Although Novell reported that fiscal second quarter revenue had declined year-over-year, from $297 million in the second quarter of 2005 to $278 in the second quarter of 2006, net income for the quarter rose. In the second quarter of 2005, the company had reported a net loss to common stockholders of $16 million, or $0.04 loss per diluted common share.

The reported revenue was also a small jump over the prior quarter, which ended Jan. 31, 2006. At that time, Novell reported revenue of $274 million, compared to revenue of $290 million for the first quarter of fiscal 2005.

During the most recent quarter, Novell reported total Open Platform Solutions revenue of $57 million, which was up from $20 million in the same quarter of fiscal 2005. Total Open Platform Solutions revenue included $46 million from sales of Open Enterprise Server, Novells Linux replacement for NetWare, and $10 million from Linux Platform Products, up 20 percent year-over-year.

/zimages/4/28571.gifRead the full story on Linux-Watch: Novell Earnings: Good News, Bad News

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