Novell sees decline in revenues and profits
Linux distributor Novell's revenues were $199 million (£129 million) in the third quarter of its financial year, $17 million less than in the same quarter last year. According to the company's press release, net profit declined from $17million to $16 million.
Revenue from the Security, Management and Operating Platforms division, which includes the Linux business, fell from $110 million to $108 million. The Collaboration division had revenues of $69 million, a good $11 million less than in the previous year.
"Our third quarter revenue was below our initial expectations, which we believe is principally related to customer uncertainty associated with the Novell Board of Directors' ongoing review of various alternatives to enhance stockholder value as described in Novell's March 20, 2010 press release," said Novell CEO Ron Hovsepian. The company reduced its revenue expectations for the previous quarter two weeks ago, because of what the company said was customer uncertainty after Novell rejected a takeover bid in March. Hovesapian reiterated that he believed customer uncertainty was the issue causing the reduction in revenue.