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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: ToySoldier who wrote (29088)	11/24/1999 1:16:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 42771

Novell 4th-Qtr Earnings Rise; Misses Whisper Estimate 11/23/99 5:05:00 PM Source: Bloomberg News Provo, Utah, Nov. 23 (Bloomberg) -- Novell Inc.'s fiscal fourth-quarter profit rose 76 percent, missing the most optimistic forecasts, as sales of the computer-network software maker's server products grew slower than expected. Net income for the quarter ended Oct. 31 rose to $74 million, or 21 cents a share, from $42 million, or 12 cents, in the year-earlier period. Excluding a gain from a tax settlement, Novell earned 17 cents a share, matching the average estimate of analysts polled by First Call. The ''whisper estimate,'' the number Wall Street analysts share with their clients, was 18 cents a share. The Provo, Utah-based company said sales of its Netware line of directory products for server computer networks rose 17 percent from a year ago, slower than the industry average of about 20 percent annual growth. Total revenue rose to $345 million from $298 million. The earnings disappointed some analysts, who had expected Novell to record more sales after indicating last quarter that its distributors' stock of its products was below average, and that could bring additional revenue this quarter. ''My sense was that (revenue) this quarter should have been higher, and it came in slightly below our estimate,'' said Peter Ausnit, an analyst at Volpe Brown Whelan & Co. Tax Deduction Novell was able to reduce its federal tax payments by $15.2 million, paying $7.6 million in income taxes this year, less than half of the $16.3 million paid last year. Novell successfully negotiated a one-time deduction from the Internal Revenue Service, Chief Financial Officer Dennis Raney said. ''Since we had a favorable settlement, it added 4 cents to our earnings'' per share, Raney said. ''We worked through a number of things, some of it had to do with acquisitions, and some with the R&D tax credit and foreign sales corporation benefits.'' Novell is benefiting from the delay in the release of Microsoft Corp.'s Windows 2000 software, which includes an Active Directory application that will compete with Novell's NDS directory, analysts said. Windows 2000 will be released next February, Microsoft said. ''There's still this opportunity for Novell with NDS,'' said Paul Dravis, an analyst at Banc of America Securities with a ''market perform'' rating on Novell. ''Even Microsoft would concede that when they release Active Directory with Windows 2000, it still won't be bug-free.'' Benefit While Windows 2000 includes a product that competes with Novell, the company could also benefit from the release of Windows 2000 as some customers who bought Windows then purchased Novell's directory software to replace the Microsoft directory, analysts said. ''From what I see in my research, the year of the directory is just beginning,'' said Joel Achramowicz, an analyst at Preferred Capital Markets Inc. with a ''strong buy'' rating on Novell. ''Novell has a cross-platform directory that Microsoft can't match.'' Directory services software, Novell's main product line, lets computer network managers determine what files, applications and devices individual users can access. Novell's directory service software accounts for about 50 percent of Novell's annual revenue. Applications that run with its directory software account for about 23 percent of the company's revenue, while education and consulting fees account for about 15 percent. For the full year, Novell had revenue of $1.27 billion, up from $1.08 billion a year ago. Novell shares fell 1 11/16 to 22 at the 4 p.m. EST Nasdaq close. In trading on electronic networks after the close, shares rose 15/16 to 22 15/16.

To: ToySoldier who wrote (29088)	11/24/1999 11:42:00 AM
From: PJ Strifas	Respond to of 42771

It's my understanding the the connectors for SSO are not that complicated to create. Could be that Novell just needs a good nudge with a particular system or that they are hoping some enterprising developers would take on that project.... I would rather see Novell put together a small team of developers that would take on the SSO Connector needs of Novell's largest business clients. Perhaps this could then be developed into a freebie offering to seed the market with focused solutions rather than hoping the market will fill the gap. I'd hate to see the opportunity wasted..... Peter J Strifas