Eric Schmidt steps out of dodge
Novell CEO Steps Aside for Cambridge Tech Boss
SAN FRANCISCO (Reuters) - Business software maker Novell Inc.'s (NasdaqNM:NOVL - news) chief executive officer, Eric Schmidt, will step aside to be replaced by the CEO of Internet consultancy Cambridge Technology Partners Inc. (NasdaqNM:CATP - news), which Novell said on Monday it would acquire through a stock swap valued at around $255 million.
Jack Messman, president and chief executive officer of Cambridge, Mass.-based Cambridge Technology, will take over the helm at Provo, Utah-based Novell from Schmidt, who will remain chairman and chief strategist.
Novell shares were down 12 percent, or 23/32, to $5-3/32 in Tuesday midday trading on Nasdaq after the announcement, while Cambridge shares were up 3 percent, or 3/32, to $3-3/16.
With the acquisition of Cambridge, Novell now expects fiscal 2001 revenue to total $1.2 billion, with earnings per share of 18 cents, according to a spokesman. For 2002, Novell sees revenues between $1.6 billion and $1.7 billion and earnings per share of 50 cents.
Schmidt, a respected Silicon Valley veteran, leaves Novell after a four-year tenure that began with much fanfare in 1997.
dailynews.yahoo.com |
