WALTHAM, Mass. – Novell, Inc. announced preliminary financial results including a $20 million loss for its first fiscal quarter ended Jan. 31, 2007. These financial results are preliminary because during the third fiscal quarter of 2006 the company began a self-initiated,voluntary review of its historical stock-based compensation practices and related potential accounting impact.
For the first fiscal quarter 2007, Novell reported net revenue of $230 million (all figures U.S.), compared to net revenue of $242 million for the first fiscal quarter 2006.
The loss available to common stockholders from continuing operations in the first fiscal quarter 2007 was $20 million, or $0.06 loss per common share. This compares to income available to common stockholders from continuing operations of $4 million, or $0.01 per diluted common share, for the first fiscal quarter 2006.
On a non-GAAP basis, which includes stock-based compensation, adjusted loss available to common stockholders from continuing operations for the first fiscal quarter 2007 was $3 million, or $0.01 loss per common share. This compares to non-GAAP adjusted income available to common stockholders from continuing operations of $4 million, or $0.01 per diluted common share, for the first fiscal quarter 2006.
During the first fiscal quarter 2007, Novell reported $15 million of revenue from Linux Platform Products, up 46 per cent year-over-year, and $91 million of invoicing, up 659 per cent year-over-year. Revenue from Identity and Access Management was $24 million, down 7 per cent year-over-year. Combined revenue from Open Enterprise Server and products related to NetWare declined 18 per cent from the year ago period.
“We are very pleased with our first quarter Linux results and momentum,” said Novell president and CEO Ron Hovsepian. “We have made good progress toward implementing our strategic initiatives and achieving our key fiscal year 2007 milestones. Overall, our quarterly results were mixed and we will need to improve our execution in our identity, security and systems management businesses. We feel confident that we are on the right path to put Novell on target for sustained profitability.”
The financial results reported do not take into account any adjustments that may be required in connection with the completion of the stock-based compensation review and should be considered preliminary until Novell files its Form 10-Q report for the third fiscal quarter ended July 31, 2006, its Form 10-K report for the full fiscal year ended Oct. 31, 2006, and its Form 10-Q report for the first fiscal quarter ended Jan. 31.
