Well here is my response from Troop to the letter I sent Marengi :
======================================================
Mr. Phillips /
Joe Marengi asked that I respond to your email massage of 12/18.
Novell is well along with a careful, thorough process to identify and
assess candidates for the CEO position at Novell. John Young,
Novell's Chairman, explained in September that the process had been
started and that it would take upwards of six months to complete. On
November 26, during our year-end results conference call, Young
reported that "we are reviewing and identifying candidates. This is
a process that involves both the board and Joe Marengi, as president
of the company.... the choice could take as long as four to six
months. That remains our best estimate." (To read Young's complete
remarks, go to the Novell Web page:
novell.com
As with any other company making decisions of this kind, there will
not be any public discussion of specific candidates, short of the
actual choice being announced.
As to your questions regarding IntranetWare sales by geography, we
expect the general pattern of revenue being roughly split 50 /50
between the US and regions outside the US to hold true for
IntranetWare.
Regarding Novell's our cash position, generally speaking the
company's cash flow runs positive, generating between $50 and $100
million in net cash from operations in representative quarters. It
is fair to expect that over time, part of the $1 billion in cash and
short-term investments at the end of Q4 1996 will be used to make
selective investments and acquisitions that extend Novell's
technology reach in network software.
Finally, I believe your patent question addresses a press release
issued by a company called Action Technologies. On 12/18 Dow Jones
reported Novell stating that the summary judgement announced by
Action Technologies has "no material impact on Novell's business or
products today or in the future."
The Action press release was largely misleading. It focused only on
infringement and a summary judgment from the court regarding
infringement. What it didn't address are the questions regarding the
patent's validity. Novell is very confident that the patent claims
are invalid, and that fact will be reflected in the ultimate outcome
of this case.
Having said this, regardless of the outcome of the case, it carries
no material impact on Novell's business today or in the future. The
patent addresses a very narrow feature of GroupWise that relates to
task and *to do* capabilities. Resolution of these issues is not
expected to have any market impact on GroupWise, or with this aspect
of its capabilities, going forward.
Peter Troop
Sr. Director Investor Relations
408-577-8361 peter_troop@novell.com
>>> "Scott Phillips" <sdphill@thor.pla-net.net> - 12/18/96 9:45 AM
>>>
Mr. Marengi,
I am trying to get a feeling of what is going on with the search
for a
CEO for the Company. Is the company actively searching for a new
CEO? If
so why have the shareholders not been informed on who? Since you
have been
overseas for much of the quarter, Mr Marengi, do you feel
InternetWare
sales will be higher through our foreign channels. How is the 1
billion
dollars holding up and what are the plans for it's use? And Finally
could
you comment on Novells position on the Groupwise pattent infringement
lawsuit?
Scott Phillips
Shareholder |
