Novell Posts Wider 2Q Loss; Shares Slide
Reports on Novell's quarterly earnings show that for all of the buzz about Novell's recent Linux activities, its well-being is overwhelmingly dependent on its declining legacy business. Quarterly revenue from software licensing fell from $60M to $46M in a year, and SuSE licenses only brought in $8 million (out of a total revenue of $297M). As would be expeced in a company trying to re-purpose itself for new opportunities, operating costs are on the rise, resulting in increased losses.