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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If all you watch is revenue. But revenue is not everything.

Yes it is in Novell's case. It is staying static and gradually declining while their fixed costs are unaltered.

No , the problem is they invest to heavily , too soon in what dont bring that much in return.

Yer. After three years shareholders and investors have no time for that. That's called a hopeless case.

It dont make sense yet , they will ask that they spend less on R&D and push for better ROI.

Breaking the company up does make sense. There is absolutely no hope of a return on investment. You could wait five to ten years for that to happen, and it probably won't because the current situation won't change.

No it would mean that Novell just as to wait longuer

Wait how much longer? Their investors have waited three years and their situation hasn't improved from even before the Suse aquisition.

it all depends if they invest another billion to get that 54 milion

Oh, sh*t! And how much sense does that make, oh fountain of wisdom? You were saying something about ROI? Divide 54 million (whatever that is) into a billion and work out some timeframes.

Novell did not make 54 million

Oh they didn't?! Well that was your figure, and I just assumed it was the revenue for Novell's Linux and OSS income, which is wrong by the way. It was 56 million according to the article.

how much did they make , do you even know ?

Do you know? Read the aricle?

What made that money ? wher ethat 1.7 Billion come from ?

That's the cash pile that Novell are currently living off ;-).

this means that the rest made it and since they did not invest anymore in it , its highly profitable

Is it really?! Wow.

hence the problem is the GNU/Linux division.

Is it? There are parts of their Linux division that are a problem, but the point is that their cash cow business of Netware, eDirectory and other software is declining and they've badly handled how Linux was going to solve that because the situation is the same. It's not the problem of the Linux division itself at all - it's about the management and leadership, or lack of it.

I think Novell should employ you. You would fit in well ;-).

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