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

To: PJ Strifas who wrote (30332)	2/15/2000 11:58:00 AM
From: Paul Fiondella	Read Replies (2) \| Respond to of 42771

Novell Earnings I have been looking over the numbers. Novell now breaks down its product numbers into basically four categories: -1- Server OS (roughly 51% of revenues) -2- Directory APPS (roughly 26% of revenues) -A- network infrastructure (Bordermanager & NDS) -B- management & groupware (Zen line) -3- Training & Services (roughly 15%) -4- Legacy OS For Novell to produce a significant quarter they would simply have to maintain server OS sales and services and produce enough growth in directory apps to offset declines in legacy products. Usually between Q4 and Q1 there is a modest decline in server OS revenues. This year however there was a new OS release in mid January. Directory Apps have grown from quarter to quarter consistently for several years. We also have a full quarter of caching appliance sales boosting the directory apps category. It is certainly conceivable that Novell could beat consensus $.13 by $.02. Given that $3.4 million in profit is $.01 a share, you have a lot of room here for an upside surprise. Other opinions are welcome.