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

To: M Goodson who wrote (20268)	2/24/1998 7:24:00 PM
From: Anthony Wong	Respond to of 42771

Novell's Earnings Fell In Quarter But Beat Wall Street Forecast February 24, 1998 6:13 PM NEW YORK -(Dow Jones)- Networking-software maker Novell Inc. late Tuesday reported better-than-expected earnings for its fiscal first quarter amid ongoing restructuring efforts, though the results still were sharply lower than a year ago. Orem, Utah-based Novell also reported revenue for the quarter skidded 33% to $252 million. Revenue also was down from the fourth quarter's $269.3 million, primarily because of weakness in the financially strapped Asia Pacific region, Novell said. The company said net income for the first quarter fell 72% to $14.1 million, or four cents a share, from $50.8 million, or 15 cents a share, a year ago. Eight analysts surveyed by First Call had a mean earnings estimate for the latest quarter of two cents a share. Novell said earnings were higher than expected because it was able to lower its costs and expenses through tighter controls and new management practices. First-quarter operating expenses totaled $192 million, down $20 million from the fourth quarter and $45 million lower than the year-earlier period. The results were released after the stock market closed Tuesday. Nasdaq-listed shares of Novell (NOVL) rose 15.6 cents to close at $8.719. Novell has long been the largest supplier of operating systems used to manage networks of personal computers. But rival Microsoft Corp. has mounted a long-term attack in the networking market with its Windows NT product. Novell recently has concentrated on rebuilding its products around the standard protocol of the Internet and has said it plans to be a "pure" Internet software firm by summer 1998. In January the company met its schedule for launching a broad public beta test of its NetWare 5 network-server platform. The final NetWare 5 product, based on open Internet standards, is expected to ship in mid-1998. During the latest quarter, Novell said it shipped several new products that are part of the next generation of Internet-related solutions, including: Year 2000 solutions for its core NetWare software, server software for NetWare made in a joint venture with Netscape Communications Corp. and directory-service software for users of Windows NT. Novell was dealt an apparent setback last month when it was reported that Microsoft (MSFT) planned to halt some technical-support services for NT users running Novell's directory product. The directory software, which helps manage corporate networks, is seen as a key to Novell's turnaround efforts. Novell's directory product can track network users running on different operating systems like Unix, NetWare, those designed for mainframes and Windows NT. Microsoft is working on providing such directory services for Windows NT only. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.