Novell 1st Quarter Profit More Than Doubles
*[ note that morgan stanley revised their estimates late today to .08, not .09...]
Thursday February 25 9:59 PM ET
PALO ALTO, Calif. (Reuters) - Novell Inc. (Nasdaq:NOVL - news), which has been
charting a comeback the past two quarters, Thursday reported that its fiscal
first-quarter profit more than doubled as sales rose 13 percent.
The second largest maker of software that helps power computer networks said
net income for the quarter ended Jan. 31 rose to $28.9 million, or 8 cents a share,
from $14.1 million, or 4 cents a share a year ago. Analysts were expecting 9 cents
a share, according to First Call Corp.
Revenue rose 13 percent to $285.8 million from $252 million a year ago as the
Provo, Utah-based company benefited from a delay at rival Microsoft Corp.
(Nasdaq:MSFT - news) and as it sold more Internet-based software and products.
''The tremendous initial response to NetWare 5 in our first quarter is being
amplified by directory-related products,'' said Eric Schmidt, Novell chairman and
chief executive, in a statement.
As computer networks at large businesses proliferate and become increasingly
complex, they need software to help manage them as well as the users of the
networks.
Novell's NDS Network directory software had found favor with customers and was
gaining because Microsoft did not have a competing offering for its Windows NT
Operating system, analysts said.
Novell stock closed up almost 10 percent, or $1.88, at $20.88 on Nasdaq amid
expectations the company would report strong results, which it did after the close
of trading.
The stock has more than doubled in the past year as Schmidt has turned the
company around and focused on its more promising technologies such as its NDS
directory software.
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