Software solutions provider Novell Inc. (NOVL), Thursday reported a wider net loss for the fourth quarter, hurt by goodwill impairment, and restructuring expenses. However, the company's quarterly non-GAAP earnings grew over last year, and exceeded the analysts' consensus, as did its quarterly revenues. Looking ahead, the company provided revenue outlook for the first quarter, which is estimated to beat the Street expectations.
The Waltham, Massachusetts-based company GAAP net loss of $256 million or $0.74 per share for the fourth quarter, compared to a GAAP net loss of $16 million or $0.05 per share in the prior year quarter. Result for the latest quarter mainly included impairment of goodwill and intangible assets, and restructuring expenses.
Excluding items, non-GAAP net income rose to $38 million or $0.11 per share from $22 million or $0.06 per share in the year-ago quarter. On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Novell, which is world's second largest seller of Linux software, said that its fourth quarter net revenue declined to $216 million from $245 million in the same quarter last year. Nine analysts had a consensus revenue estimate of $215.69 million for the fourth quarter. The company noted that foreign currency exchange rates negatively impacted net revenue by $2 million.
Product revenue from Open Platform Solutions for the fourth quarter was $41 million, of which $39 million was from Linux Platform Products, up 14% over a year ago.
Product revenue from Identity and Security Management was $32 million, of which Identity, Access and Compliance Management was $30 million, down 14% from the year-ago quarter.
Product revenue from Systems and Resource Management decreased 10% to $40 million. Workgroup product revenue declined 15% year-over-year to $78 million.
Total operating expenses for the fourth quarter increased to $427.1 million from $193.8 million in the prior year quarter.
For the full fiscal year 2009, Novell reported a GAAP net loss of $213 million or $0.62 per share, compared to a net loss of $9 million or $0.02 per share in the previous year.
Non-GAAP net income grew to $117 million or $0.34 per share from $91 million or $0.26 per share in the prior year.
Annual net revenue decreased to $862 million from $957 million in the year-ago.
Analysts expected earnings of $0.29 per share on revenue of $862.24 million for the year 2009.
For the first quarter of fiscal 2010, Novell anticipates net revenue in the range of $200 million to $210 million. Street projects the company to post revenue of $214.20 million for the first quarter. Invoicing growth is expected to improve from first fiscal quarter 2009 levels.
Among others in the industry, Red Hat Inc. (RHT) is scheduled to announce third-quarter results on December 22. Wall Street expects earnings of $0.16 per share on revenues of $188.51 million.
Novell closed Thursday's regular trading session at $4.04, up 4 cents or 1.00% on a volume of 3.20 million shares. In the after-hours, the shares lost 12 cents or 2.97%.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.