They've promised growth for two quarters and haven't delivered. That
doesn't inspire confidence in where they are going,' said Scott Reamer, an analyst with Cowen and Co. in Boston.
Putting a silver lining on the earnings announcement, President Joe Marengi pointed to record sales of IntranetWare and said to expect a flurry of activity from the company soon.
At its BrainShare conference later this month, the company will
announce enhancements to its Novell Directory Services and ManageWise
programs, as well as roll out Novell Border Services for tying intranet services to the 'Net.
Chairman John Young said the uncertainty surrounding Novell's
leadership will be cleared up when a CEO is named in the near future. When Frankenberg left in August, the plan was to fill that spot within four to six months, but that decision is not expected for another few weeks.
Some shareholders are calling for more drastic measures to make the company turnaround happen more quickly.
'We want Marengi and the entire board of directors out of there
now,' said Joe Antol, a stockholder from New Jersey who has organized
other shareholders in a cyberspace protest against Novell management. The group, which calls itself the Novell Investors' Coalition, has pooled more than 500,000 shares to help influence its request for new leadership.
Other industry observers contend that Novell is a likely target for an acquisition.
'With Novell stock so low, if you wanted to take them over, milk the revenue streams and take the $1 billion in liquid cash, now would be the time to do it,' said Neil MacDonald, an analyst with Gartner Group, Inc. in Stamford, Conn. |
