TO ALL: FROM CRN 2/14 >> Novell May Use $1B Cash
By Edward F. Moltzen
New York
2:00 p.m. EST Fri., Feb. 14, 1997
.............
Novell Inc., which has taken its lumps over the past year as its sales
and profits have shrunk, may puts its $1 billion cash in the bank to
use.
In a recent annual filing with the U.S. Securities and Exchange
Commission, Novell said it has continued to generate cash from its
operations and may soon put it to use.
In its 10K filing with the SEC, Novell said its "cash may also be used
to acquire technology through purchases and strategic acquisitions."
According to its last balance sheet, the Orem, Utah-based maker of
networking software had $1.025 billion in reserve.
In the filing, Novell further said that "investments will continue in
product development and in new an existing areas of technology."
Novell shares are selling for about two and a half times the
company's book value of $4.68 per share, according to an analysis
by Goldman Sachs & Co Inc. Novell shares have been trading at
just below $12 per share.
Still, the company has been under pressure from several institutional
shareholders including the California Public Employees' Retirement
System, the nation's largest public employee's pension fund.
Earlier in the week, CalPERS named Novell--along with other
high-tech companies, including Apple Computer Inc. and Sybase
Inc.--as underachievers in an annual report it publishes.
The pension fund said that the companies on the list might face a
shareholder revolt if each does not significantly improve
performance.
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Comment: They don't mention us directly, however I suspect the last paragraph alludes to it.
Joe... |
