Novell Reports Financial Results for Second Fiscal Quarter 2005
Novell, Inc. (NASDAQ:NOVL) today announced financial results for its second fiscal quarter ended April 30, 2005. For the quarter, Novell reported revenues of $297 million, compared to revenues of $294 million for the second fiscal quarter 2004. Net loss available to common stockholders in the second fiscal quarter 2005 was $16 million, or a $0.04 loss per diluted common share. This compared to a net loss available to common stockholders of $15 million, or a $0.04 loss per diluted common share, for the second fiscal quarter 2004.
On a non-GAAP basis, adjusted net income available to common stockholders for the second fiscal quarter 2005 was $1 million, or $0.00 per diluted common share, which excludes $6 million of restructuring and acquired in-process research and development expenses, $1 million of long-term investment impairments and a net $11 million for income taxes related to non-GAAP adjustments. This compares to non-GAAP adjusted net income available to common stockholders for the second fiscal quarter 2004 of $14 million, or $0.03 per diluted common share, which excludes the effect of a preferred stock deemed dividend of $26 million, restructuring expenses of $5 million, investment impairments of $1 million and a $2 million gain on a sale of property, plant and equipment. Full details on Novell's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial schedules that are a part of this release.
In the second fiscal quarter 2005, foreign currency exchange rates favorably impacted total revenue by approximately $8 million year-over-year. Foreign currency exchange rates favorably impacted net income by $2 million year-over-year.
During the second fiscal quarter 2005, Novell recognized revenue of $8 million from subscriptions to SUSE LINUX Enterprise Server (SLES). Sales of subscriptions to SUSE LINUX Enterprise Server totaled 19,000 units in the quarter.
"Our results this quarter reflect the significant investments we are making to reposition Novell," said Jack Messman, chairman and CEO of Novell. "I am confident that these investments will lead to increased customer acceptance of our solid solution offerings in the Linux and identity driven computing segments."
On the balance sheet, cash and short-term investments were $1.6 billion at April 30, 2005, compared with $1.7 billion at January 31, 2005. Days sales outstanding (DSO) in accounts receivable was 59 days at the end of the second fiscal quarter 2005, down from 67 days in the year ago quarter. Deferred revenue was $321 million at the end of the second fiscal quarter 2005, up $25 million or 8% year over year. Cash flow from operations was a negative $25 million for the second fiscal quarter 2005, up from a negative $28 million a year ago.
A summary of Novell's vision, mission and strategy can be accessed on the Novell® Web site at: www.novell.com/company/ir/qresults.
Conference call notification and Web access detail
A live Webcast of a Novell conference call to discuss the quarter will be broadcast at 5PM ET May 25, 2005, from Novell's Investor Relations Web page: http://www.novell.com/company/ir/qresults/. The domestic conference call dial-in number is 888-323-5254, password "Novell", and the international dial-in number is +1-773-756-4625, password "Novell".
The call will be archived on the Web site approximately 15 minutes after its conclusion, and will be available for telephone playback through midnight, June 7. The domestic toll-free replay number is 866-469-7805, and the international replay number is +1-203-369-1473.
A copy of this press release is posted on Novell's Web site at: http://www.novell.com/company/ir/qresults/.
Legal notice regarding forward-looking statements
This press release includes statements that are not historical in nature and that may be characterized as "forward-looking statements," including those related to future financial and operating results, benefits and synergies of the company's brands and strategies, future opportunities and the growth of the market for open source and identity management solutions. You should be aware that Novell's actual results could differ materially from those contained in the forward-looking statements, which are based on current expectations of Novell management and are subject to a number of risks and uncertainties, including, but not limited to, Novell's ability to integrate acquired operations and employees, Novell's success in executing its Linux and identity management strategies, Novell's ability to take a competitive position in the Linux and identity management industries, business conditions and the general economy, market opportunities, potential new business strategies, competitive factors, sales and marketing execution, shifts in technologies or market demand and the other factors described in Novell's Annual Report on Form 10-K filed with the Securities and Exchange Commission on January 13, 2005. Novell disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
Novell, Inc. (Nasdaq: NOVL) is a leading provider of infrastructure software and services to over 50,000 customers in 43 countries. With more than 20 years of experience in data center, workgroup and desktop solutions, Novell's 6,000 employees, 5,000 partners and support centers around the world are meeting customer requirements for identity-driven computing and Linux solutions. By providing enterprise-class software and support for commercial and open source software, Novell delivers increased operating flexibility and choice at a lower total cost of ownership. More information about Novell can be found at http://www.novell.com.
Novell is a registered trademark of Novell, Inc. in the United States and other countries. SUSE is a trademark of SUSE LINUX Products GmbH, a Novell business. * Linux is a registered trademark of Linus Torvalds. All other third-party trademarks are the property of their respective owners.
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