News

Novell Blames W2K, Linux for Drop in Earnings

Novell Inc. announced yesterday that it will report lower than anticipated revenue and earnings for the second quarter of 2000, which ended April 30. The company cites a weak global sales channel and the introduction of Windows 2000 and growing interest in Linux as key factors in the drop-off.

Novell (www.novell.com) expects to report full financial results for the second quarter after the close of the market on May 23. In the first quarter of 2000, Novell reported $316 million in revenue and $0.13 per share. The company expects to report total revenue for the second quarter of just over $300 million and earnings of $0.08 per share.

Novell blames a decline in channel sales as the primary factor in the lower than expected revenues. The company also cites a decline in its large account site-license business. However, Novell specifically points to the uncertainty, market shifts, and delayed sales created by the tandem punch of the release of Windows 2000 as well as growing interest in Linux as reasons for the company's second quarter slump.

"We have already started to take actions to realign our sales and marketing efforts around our recently introduced Net services software strategy," said Dennis Raney, Novell senior vice president and CFO. "We believe these changes will take the remainder of fiscal 2000 to be deployed." - Isaac Slepner

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • Tamper Protection Now Available to Microsoft Defender ATP Subscribers

    The Microsoft Defender Advanced Threat Protection (ATP) E5 subscription plan now has an optional "tamper protection" security feature, Microsoft announced on Monday.

  • Exploring OCR, a New Way To Get Data into Excel

    Microsoft recently added a new optical character recognition feature to Excel that lets users import data from a photograph taken from a smartphone. Here's how to use it.

  • Microsoft Authenticator App To Get Real-Time Phishing Protections

    Microsoft is working on adding capabilities to its Microsoft Authenticator app to help defeat security breaches enabled by advanced attack techniques, including phishing and man-in-the-middle methods.

  • A Quicker Way To Create Hyper-V Inventory Reports

    If you need to generate Hyper-V inventory reports but don't want the hassle of writing your own custom PowerShell script, here is a shortcut.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.