Software solutions provider Novell Inc. (NOVL), which has been recently on news for putting itself for sale, is expected to post second-quarter earnings of $0.07 per share and revenue of $204.85 million, according to Street analysts. The company is scheduled to report its results after the market close Thursday.
The company expects second-quarter net revenue to be similar to first fiscal quarter of 2010 levels. Non-GAAP operating margin is projected to be between 12% and 15% for the second quarter.
During the quarter, Elliott Associates, L.P., a fund managed by Elliott Management Corp., proposed to acquire Novell for a cash consideration of $5.75 per share, which represents a premium of 115% over the company's enterprise value on January 4, 2010, and represents a 37% premium to Novell's closing stock price on January 4, 2010 and a 20% premium to Novell's closing stock price on February 1, 2010.
For the preceding first quarter, the Waltham, Massachusetts-based company reported net income of $20 million or $0.06 per share, compared to $11.0 million or $0.03 per share in the year-ago quarter, helped by lower operating expenses, notwithstanding a decline in revenues. Quarterly revenues decreased to $202 million from $215 million in the previous year.
Among other companies in the Security Software & Services industry, McAfee Inc. (MFE) posted lower profit for the first quarter totaling $37.6 million or $0.23 per share, compared to $53.5 million or $0.34 per share last year, as bigger restructuring charges and higher provision for income tax more than offset a 12% increase in revenue that amounted to $502.75 million versus 447.71 million in the previous year..
McAfee forecasts second-quarter GAAP earnings in the range of $0.29 - $0.33 per share and non-GAAP earnings of $0.58 - $0.62 per share, with revenues ranging between $500 million and $520 million. Analysts are looking for earnings of $0.61 per share on revenues of $511.45 million for the second quarter.
Another industry peer, AsiaInfo Holdings Inc. (ASIA) posted first-quarter net income attributable to the company of $10.3 million or $0.21 per share, compared with $5.8 million or $0.13 per share in the previous year period. Total revenues for the quarter were US$63.46 million compared with US$50.97 million in the previous year.
Novell shares, which have been trading between $3.84 and $6.15 in the past 52 weeks period, closed Wednesday's trading session at $5.81, down 10 cents or 1.69%, on a volume of 4.34 million shares.
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