Novell, Inc. (NOVL), the world's second largest seller of Linux software, on Monday lowered its third quarter revenue outlook, citing customer uncertainty surrounding the company's ongoing review of various alternatives that include a possible sale of the company.
The Waltham, Massachusetts-based company said it now expects third quarter revenue to be in the range of $197 million to $199 million, down from its prior guidance of $205 million to $210 million.
Analysts polled by Thomson Reuters currently expect the company to post revenue of $207.06 million for the third quarter.
Novell now expects non-GAAP operating margin for the third quarter to be 13% to15%, compared to previous guidance of about 15%.
In March, Novell rejected a $5.75 per share takeover offer from Elliott Associates, L.P., calling it inadequate. At the same time, the company announced a thorough review of various alternatives to boosts shareholder value, including a stock repurchase or cash dividend, strategic partnerships and alliances, joint ventures, a recapitalization and a sale of the company.
Novell shares closed Monday's regular trading session at $6.01, down 7 cents and lost an additional 16 cents or 2.66% in after hours trading.
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