Yes Jim, the traders seemed to know
And they bid the stock up quite a bit today.
However the WSJ reported the news as a "sharp drop in earnings"
(Q4-96 to Q4-97).
And that's what will be in tomorrow's paper.
Here are some of the breakdowns by product line
Server OS Q2 Q3 Q4
Netware 3 34,581,000 10,025,000 27,952,000
IntranetWare 4 132,087,000 28,180,000 128,976,000
=========== ========== ===========
166,668,000 38,205,000 156,928,000
Network Services
Host Connectivity & BorderManager
24,807,000 8,252,000 27,888,000
Groupware & Managewise 39,935,000 15,719,000 35,801,000
=========== ========== ==========
64,742,000 23,971,000 63,689,000
Other
UNIX OS Royalties 9,298,000 7,359,000 9,731,000
Education, Service& etc. 32,399,000 20,539,000 38,935,000
========== ========== ==========
41,053,000 27,898,000 48,666,000
Total Net Revenue
273,107,000 90,074,000 269,283,000
Net Investment Income 6,415,000 9,883,000 19,359,000
EPS ($0.04) ($0.35) $0.02
=====================================
I think you should note that the investment income numbers amount to
$0.055 per share, an improvement of $0.027 a share over last quarter.
Basically if you discount this income you are looking at a loss of
($0.007) for the quarter.
Also of interest are the "savings" from the axing of employees.
Where are they?
I see $15 million in sales and marketing and $2 million in
administration with $5 million eaten up by product development
leaving a net improvement of $12 million vs Q2 (the relevant quarter
for comparison).
Moreover administration expenses have gone back up from Q3 by
$4 million!
That is hardly much of a savings for getting rid of 1000 employees.
It tells me something is wrong again.
=====================================
My conclusion is simple.
A comparison with Q2 shows approximately flat to
slightly down revenue.
BorderManager isn't kicking in bigtime.
Hostmaster may be doing something.
NDS on NT is in the future and MOAB is in the future.
Novonyx revenues are in the future.
The company hasn't turned itself around.
It has stabilized.
But then again its not under the assault of NT5.0 yet.
If they portray this as a turnaround and don't focus on cutting costs
and better defining their markets and products then they are kidding
themselves but not this investor.
=============================
I will let you know premarket NOVL numbers before the opening. |
