Software and computer infrastructure company Novell Inc. (NOVL) is scheduled to report third-quarter results after the close of market on Thursday. On average, nine analysts polled by Thomson Reuters expect the company to earn $0.07 per share for the quarter on revenues of $216.64 million. Analysts' estimates typically exclude special items.
The Waltham, Massachusetts-based company operates in four segments: Open Platform Solutions, Identity and Security Management, Systems and Resource Management, and Workgroup.
With the recession curtailing consumer and corporate spending, across sectors, companies have had to grapple with lower orders, volumes and revenues. Novell said earlier in the year that its second-quarter software licenses revenue dropped 31.9% and services revenue declined 33.1% from the year-ago period, and the trend is likely to have continued in the third quarter too, although there are hopes of a rebound now. Enterprise application software maker SAP AG (SAP) said last month that its second-quarter revenue dropped 10% from the year-ago period, largely due to a 40% decline in software revenue.
On the bright side, there are indications that demand is stabilizing in the technology sector. Germany, France and Japan have managed to pull out of recession, according to recent data. PC maker Hewlett-Packard Co. (HPQ) recently rolled out its Pavilion dv2 laptop, indicating that consumers are showing confidence and is ready to spend on computers. Hewlett-Packard said last week that it expects fourth-quarter revenue to be up about 8% sequentially. Indicating an economic recovery, chip maker Analog Devices Inc. (ADI) also last week issued a profit outlook for the fourth quarter that exceeded analysts' forecast.
The Commerce Department released a report on Wednesday showing that orders for durable goods increased by much more than expected in July. The report showed that new orders for durable goods jumped 4.9% in July following a revised 1.3% decrease in June. Economists had expected orders to increase by 3.2% compared to the 2.2% decrease that had been reported for the previous month.
In May, Novell reported a sharp increase in second-quarter profit as expenses declined. The company's net income tripled to $15.62 million, or $0.05 per share, from $5.87 million, or $0.02 per share, in the same quarter a year ago. However, revenues declined to $215.60 million from $235.67 million in the previous year, reflecting a huge drop in software licenses and services revenue.
Recent Events: In June, reports appeared in the media, hinting the possibility of Novell selling some parts or the entire company. J.P. Morgan analyst John DiFucci said Novell's Chief Financial Officer Dana Russell "entertained the possibility of breaking out some parts or of selling the entire company in order to maximize shareholder value given the current depressed valuation levels." The company may be signaling that it is willing to be acquired, DiFucci noted.
However, Novell, a provider of Linux solutions, said in a regulatory filing on June 22 that it currently has no plans to sell the company. Novel also said that it is continuing to operate in the best interest of its shareholders.
Recently it was reported that Novell received an adverse ruling from the 10th U.S. Circuit Court of Appeals regarding the copyright of the Unix computer operating system. The company has been engaged in a legal battle with SCO Group Inc. SCOXQ.PK) over this for years.
Among others in the industry, open source solutions provider Red Hat Inc. (RHT) said in June that its first-quarter profit increased from last year, helped by an 11% growth in revenue. The company posted net income of $18.5 million, or $0.10 per share, for the first quarter, up from $17.3 million, or $0.08 per share, in the prior-year quarter. Red Hat's first quarter revenue increased 11% to $174.4 million from $156.6 million in the same quarter last year.
NOVL closed Wednesday's regular trade at $4.75, up $0.03 or 0.64%, on 3.59 million shares. For the past year, the stock traded in the range of $2.97-$6.62.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.