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Re: [NOVL] Novell Loses Big, Will Fire One in Five
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I'm waiting for NOVL to tank like IFMX did. No such luck, yet.
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by Dan Mitchell (Wired Mag, no relation)
6:02pmÿÿ28.May.97.PDT -- Novell Inc. will cut about 1,000 jobs in the next few months, thanks largely to an unexpected US$14.6 million loss in the latest quarter. The cuts represent about 18 percent of the company's work force.
By imposing the cuts, CEO Eric Schmidt, who came to Novell from Sun Microsystems in April, "has taken relatively swift action on restructuring and refocusing the company," says Therese Murphy, an analyst at Smith Barney.
Part of Novell's problem, Murphy said, was that before Schmidt's arrival, the networking-software company was slow to respond to the rise of the Internet. "Novell is losing share at the low end," she said. Much of that share has gone to Microsoft's NT software. Under Schmidt, Novell is concentrating less on boxed software products and more on licensing.
Novell's losses totaled US$14.6 million or 4 cents a share in the quarter ending 30 April. Analysts had been expecting a profit as high as 10 cents a share. The restructuring charge Novell is anticipating will cause the company to post a third-quarter loss of as much as $35 million, the company said.
Schmidt said Novell plans to halt all shipments to distributors in the third quarter in order to clear out clogged inventory pipelines.
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