Linked by Thom Holwerda on Sun 5th Mar 2006 13:34 UTC, submitted by Moule
Novell and Ximian "It was not the best of quarters for Linux vendor Novell. When Novell announced its financial results for its first fiscal quarter, which ended Jan. 31, 2006, it reported revenue of $274 million [EUR 227 million], compared to revenue of $290 million [EUR 241 million] for the first fiscal quarter 2005. This was a decline from the previous quarter in which Novell had reported $320 million [EUR 266 million] of revenue."
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The financial statement (and the previous one a few months ago) suggests that Novell's Linux/OSS side is doing OK. Not spectacular, and not as well as they'd like, but it has a good rep and it is growing.

The core of the problem with Novell is that the Linux/OSS side is a small fraction of the size needed to support the rest of the company which is doing badly. Essentially, Novell bet on a race: that they could grow their new Linux/OSS side fast enough to offset the decline in the rest of the company. For whatever reason, that bet hasn't paid off. The result is steady decline and shareholder unrest.

Since Novell are sitting on $1.7 billion in cash and short-term assets, they are at risk of some shareholders turning up and demanding that the company be broken up for hard dollars. This is the stock market for you and has nothing to do with the quality of SuSE Linux. Even if SuSE's sales doubled, the situation would be little different.

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