To All: Initial press release from Business Wire.
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OREM, Utah--(BUSINESS WIRE)--Nov. 26, 1996--Novell, Inc.
(NASDAQ:NOVL) today reported revenue of $384 million and net income
of $59 million for its fourth fiscal quarter ended October 26, 1996.
Earnings per share were $0.17 on 346 million weighted average shares
outstanding.
These results compare with year-ago net income of $59 million or
$0.16 per share and revenue of $481 million. Prior-year results
include contributions from product lines that have since been
discontinued or sold.
The first comparable period following Novell's divestiture of its
personal productivity applications and UnixWare product lines and the
company's reduction of channel inventory was the third fiscal quarter
of 1996. In that quarter, Novell reported revenue of $365 million
and net income of $59 million or $0.17 per share.
John A. Young, Novell chairman, said, "We're pleased that the
business changes Novell has been implementing all year are having
their effect on financial results. In the fourth fiscal quarter of
1996, the company achieved slightly greater profitability on almost
$100 million less revenue than in the year-earlier quarter.
Sequentially, revenue growth of $19 million, or 5 percent, over the
third fiscal quarter of 1996 reflects the improving nature of
Novell's ongoing network software business."
"We plan to move rapidly through this transition period as we
position the company to address the Internet/intranet markets. Our
actions continue to be directed at energizing the company for
profitable revenue growth."
Novell president Joseph A. Marengi said: "The sequential gain in
fourth quarter revenue was driven by strong market demand for new
versions of our major products. We saw significant growth in Novell
server software revenue, up $32 million or 15 percent sequentially to
$247 million. Of this, revenue from our new directory-enabled
IntranetWare full service intranet platform and NetWare 4 increased
38 percent to $181 million from the third quarter.
"In addition, our new GroupWise 5 E-mail and collaboration
system, the November Comdex winner of PC Computing's 1996 Most
Valuable Product Award, increased 24 percent sequentially.
ManageWise 2.1, Novell's market leading, PC-based network management
software, grew 18 percent from the prior quarter.
"Looking forward, we are advancing our strategy to establish
Novell Directory Services (NDS) as the de facto industry standard for
the rapidly expanding Internet/intranet markets. To promote mass
adoption of NDS across all server platforms, we are distributing our
directory to major UNIX providers today and to system providers
delivering Microsoft's NT operating system in early 1997. This
action will seed the market for Novell and our partners to build
revenue from cross-platform, value-added network services server
replication, messaging, management, and security that use our
directory as a foundation."
On the balance sheet, cash and short-term investments were
slightly more than $1.0 billion, compared with $1.3 billion at
October 28, 1995. During 1996, Novell repurchased 33 million shares
of its common stock for approximately $450 million.
For fiscal year 1996, earnings were $0.35 per share on revenue of
$1.4 billion, compared with $0.90 per share and $2 billion in fiscal
1995. Year-earlier results include revenue from discontinued or sold
lines of business.
Founded in 1983, Novell (NASDAQ:NOVL) is the world's leading
provider of network software. The company offers a wide range of
network solutions for distributed network, Internet/intranet and
small-business markets. Novell education and technical support
programs are the most comprehensive in the network computing
industry.
Information about Novell's complete range of products and
services can be accessed on the World Wide Web at
novell.com
Forward looking statements in this release are made under the
Safe Harbor Reform Act of 1996. These statements are based on
current expectations and actual results may differ materially due to
risks, uncertainties, and other factors. Additional information
covering factors that could cause results to differ materially from
projected statements can be found in Novell's 10-K and 10-Q filings,
as well as the annual report.
*T
Novell, Inc.
Consolidated Unaudited Condensed Statements of Income
(In thousands, except per share data)
Fourth
Fiscal Quarter Ended Year Ended
Oct. 26, Oct. 28, Oct. 26, Oct. 28,
1996 1995 (a) 1996 1995 (a)
__________ __________ __________ __________
Net sales $ 383,666 $ 480,519 $1,374,856 $2,041,174
Cost of sales 66,518 122,403 306,761 489,333
__________ __________ __________ __________
Gross profit 317,148 358,116 1,068,095 1,551,841
Operating expenses
Sales and mktg. 143,236 142,183 518,846 579,370
Product dev. 66,926 94,957 275,627 367,562
General and
admin. 38,668 43,668 146,236 152,800
Restructuring
charges -- -- 18,442 --
__________ __________ __________ __________
Total operating
expenses 248,830 280,808 959,151 1,099,732
__________ __________ __________ __________
Income from
operations 68,318 77,308 108,944 452,109
Other income,
net 14,624 11,342 71,044 56,620
__________ __________ __________ __________
Income
before taxes 82,942 88,650 179,988 508,729
Income taxes 23,912 29,698 53,997 170,424
__________ __________ __________ __________
Net income $ 59,030 $ 58,952 $ 125,991 $ 338,305
========== ========== ========== ==========
Weighted
average shares
outstanding 345,520 375,433 357,919 374,584
========== ========== ========== ==========
Net income
per share $0.17 $0.16 $0.35 $0.90
========== ========== ========== ==========
(a) Prior-year results include contributions from product lines
that have since been discontinued or sold.
Novell, Inc.
Consolidated Unaudited Condensed Balance Sheets
(In thousands)
Oct. 26, Oct. 28,
1996 1995 (a)
__________ __________
ASSETS
Current assets
Cash and short-term
investments $1,024,755 $1,321,231
Receivables, net 452,327 470,437
Inventories 16,837 23,025
Prepaid expenses 59,009 50,576
Deferred income taxes 37,831 59,913
__________ __________
Total current assets 1,590,759 1,925,182
Property, plant
and equipment, net 394,684 390,452
Other assets 64,023 101,196
__________ __________
Total assets $2,049,466 $2,416,830
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 96,933 $ 116,305
Accrued compensation 54,731 97,637
Accrued marketing
liabilities 48,402 72,339
Other accrued
liabilities 118,133 90,623
Income taxes payable -- 29,942
Deferred revenue 46,573 54,099
__________ __________
Total current
liabilities 364,772 460,945
Minority interests 17,035 17,623
Put warrants 52,150 --
Shareholders' equity 1,615,509 1,938,262
__________ __________
Total liabilities and
shareholders' equity $2,049,466 $2,416,830
========== ==========
(a) Prior-year results include contributions from product lines
that have since been discontinued or sold.
*T
CONTACT: Novell, Inc.
Peter Troop, 408/577-8975
KEYWORD: UTAH CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET EARNINGS |
