Novell intends to stay independent
By Judith Crosson, Reuters
November 27, 1996 9:49 AM EST
DENVER, Nov 26 - Novell Inc., the giant
software company, is not for sale and sees
its future course as an independent one,
Chief Financial Officer Jim Tolonen said on
Tuesday.
"We see ourselves as an independent entity,"
Tolonen told Reuters in a telephone interview
after the company released fourth quarter
earnings.
He said Novell chairman John Young told
analysts on a conference call immediately
following the release that Novell belives the
best way to provide value for customers and
shareholders is to follow an independent
course.
Tolonen also said Novell is comfortable with
analysts' estimates that it will earn in fiscal
1997 between $0.80 and $0.90 a share. For
the fiscal year ended October 31, Novell
earned $0.35 a share.
"We're well positioned to show great
earnings growth," Tolonen said. "We have
turned the company around."
But it has been a rocky road in recent
months. The Orem, Utah-based company
sold some assets, including WordPerfect -- a
company many analysts said should never
have been bought in the first place. Chief
Financial Officer Bob Frankenberg resigned
in late summer.
Tolonen said revenues in the fourth quarter
for software for intranets -- a key product --
rose $50 million from the third quarter.
The chief financial officer said Novell was
still focusing on finding strategic partners for
a variety of projects.
The company's recent difficulties has kept
alive speculation that Novell might be the
object of a takeover attempt. But with its
capitalization at about $3.8 billion, there are
not many companies that could accomplish
such a feat, Tolonen said.
Novell stock closed up 1/8 at 10-7/8 on the
Nasdaq, compared with its 52-week low of
8-3/4. The share price held steady in
after-hours trading. |
