Novell's 3rd-Qtr Net Nearly Doubles on Software Sales
Provo, Utah, Aug. 19 (Bloomberg) -- Novell Inc.'s fiscal third-quarter net income nearly doubled as revenue of the No. 2 computer network software maker climbed 20 percent.
Net income for the period ended July 31 was $49.3 million, or 14 cents a share, from $26.6 million, or 7 cents, in the year- earlier quarter. Novell was expected to earn 13 cents, the average estimate of nine analysts polled by First Call Corp.
Sales rose to $326.8 million from $272 million a year ago.
Novell shares have more than doubled in the past year amid investor optimism over the company's new software and updated Netware 5.0 product, which makes it easier for systems managers to run corporate networks. The company's so-called directory services products have benefited from a delay in similar offerings from rival Microsoft Corp., analysts said. ''The longer that Microsoft has had delays with Windows 2000, it has helped Novell,'' said Brian Goodstadt, an analyst at S&P Equity Group, who rates the stock ''accumulate.'' ''They've come back in customers' minds if nothing else.''
Directory services software gives network managers detailed information about the users, applications and devices connected to a network.
Consulting revenue rose to $10 million from $3 million a year ago, Novell Chief Financial Officer Dennis Raney said. License revenue, or software sales, rose 42 percent, he said.
Revenue from Netware 5, the company's networking software, was $108 million, up 19 percent sequentially, Raney said. It was introduced in September. ''This product is getting great acceptance. It continues to grow faster than we expected,'' Raney said.
Shares of Provo, Utah-based Novell fell 3/4 to 24 7/8. The earnings results were posted after the close of U.S. markets. |
