Novell 2010 financial results
With the sale to Attachmate looming, Novell has released its figures for the fourth quarter of 2010 and for the full 2010 financial year. Fourth quarter sales totalled $207 million, down slightly from the $216 million achieved in the fourth quarter of 2009. The company reported profits of $22 million. This compared to a loss of $259 million in the fourth quarter of 2009, although this included impairment losses of $279 million.
Over the 2010 financial year as a whole, Novell achieved a profit of $84 million on a turnover of $812 million. Turnover in 2009 was $862 million for a loss of $206 million, including the impairment losses of $279 million.
The Open Platform Solutions business unit – primarily SUSE Linux – achieved revenues of $153 million in 2010, which compares with $157 million in 2009. The Identity and Security Management business unit increased revenues from $121 million in 2009 to $129 million this year. Sales of System and Resource Management software fell from $161 to $156 million. Collaboration Solutions – which includes Novell's Groupwise groupware solution, Open Enterprise Server and Netware – earned revenues of just $286 million, a drop of more than 10% from the $319 million it earned in 2009.
Novell boss Ron Hovsepian nevertheless expressed his satisfaction with the results. He believes that the Linux business is doing well, pointing out that if turnover from Linux certificates, distributed via Microsoft, is omitted, sales increased by 40%. As part of an agreement with Novell, between the start of 2007 and summer 2009 Microsoft sold $200 million worth of SUSE Linux Enterprise licences. Hovsepian also reported that the declining Collaboration Solutions business appears to have stabilised. Overall, Hovsepian states that the company made an operating profit in 2010.
- Novell Reports Financial Results for Fourth Fiscal Quarter and Full Fiscal Year 2010, press release from Novell.