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Novell Announces Third Quarter Fiscal 1995 Results |
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Earnings Grow 33%, Revenue up 10% Over Fiscal 1994 Orem, UT-- August 23, 1995-- Novell, Inc. (NASDAQ:NOVL) today reported earnings for its third fiscal quarter ended July 29, 1995 of $102 million, or $0.27 per share, up 33 percent over adjusted earnings of $77 million, or $0.21 per share, in the third fiscal quarter of 1994. Revenue for the quarter was $538 million, up 10 percent from revenue of $489 million in the comparable period in fiscal 1994. For the first nine months of fiscal 1995, earnings increased to $279 million, or $0.75 per share, compared to an adjusted $0.64 earned during the first nine months of last year. Revenue for the first three quarters was $1.561 billion, up from $1.432 billion for the same period of 1994. Revenue and earnings for fiscal 1994 have been adjusted to exclude all nonrecurring items. Robert J. Frankenberg, Novell chairman and chief executive officer said: "NetWare 4 major account wins, rapid channel demand growth and response to our upgrade promotion led to 29 percent year-over-year NetWare growth in the third fiscal quarter. NetWare network operating system revenue increased to 54 percent of total company revenue, with NetWare 4 accounting for almost half that amount. "In addition, we also achieved revenue gains across our other networking information access and management product lines. Revenue more than doubled for two important categories of Novell network software: the GroupWise family of groupware products and ManageWise, our network management software. For the first time, our NEST software, enabling OEM device manufacturers to inexpensively connect office and consumer devices to NetWare networks, contributed more than $1 million in quarterly revenue. "Although revenue grew in all other major categories, it declined sharply in our personal productivity applications. Overall this segment of our applications business declined 35 percent year-over-year, dropping to 16 percent of total revenue. PerfectOffice and WordPerfect are Novell's lead products in this category. Clearly the Windows application market slowdown, in anticipation of Windows 95, has impacted this business. Novell's standalone and suite applications run on Windows 95 today, and versions of these applications that take advantage of the new operating system features will ship in early fiscal 1996."
Novell, Inc.
Third Fiscal Quarter Ended Nine Months Ended
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July 29, July 30, July 29, July 30,
1995 1994 as 1995 1994 as
Adjusted* Adjusted*
________ ________ __________ __________
Net sales $537,922 $488,924 $1,560,655 $1,431,632
Cost of sales 125,600 105,504 366,930 319,678
________ ________ __________ __________
Gross profit 412,322 383,420 1,193,725 1,111,954
Operating expenses
Sales and Marketing 149,010 145,713 437,187 398,594
Product development 89,788 90,619 272,605 257,079
General and
Administrative 39,368 37,191 109,132 123,582
________ ________ _________ __________
Total operating Expenses 278,166 273,523 818,924 779,255
________ ________ _________ __________
Income from Operations 134,156 109,897 374,801 332,699
Other income (expense)
Investment income 14,572 7,062 39,176 25,923
Other, net 4,604 (1,501) 6,102 (2,440)
________ ________ _________ __________
Other income, net 19,176 5,561 45,278 23,483
________ ________ _________ __________
Income before
Income taxes 153,332 115,458 420,079 356,182
Provision for
Income taxes 51,366 38,585 140,726 119,321
________ ________ _________ __________
Net income $101,966 $76,873 $279,353 $236,861
________ ________ _________ __________
Net income Per share $.27 $.21 $.75 $.64
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Weighted average shares
Outstanding 376,494 368,313 374,302 368,290
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* The above results for fiscal 1994 have been adjusted to exclude all nonrecurring items and to normalize income taxes. The net effect of such nonrecurring items in the third quarter of fiscal 1994 reduced net income by $81 million or $0.22 per share. The net effect of such nonrecurring items for the first nine months of fiscal 1994 reduced net income by $51 million or $0.13 per share.
Novell, Inc.
July 29, October 29,
1995 1994
___________ ___________
ASSETS
Cash and short-term investments $1,230,344 $861,809
Receivables, net 467,315 391,342
Inventories 35,134 32,221
Pre-paid 51,528 69,324
Deferred income taxes 93,723 98,435
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Total current assets 1,878,044 1,453,131
Property, plant and equipment, net 377,432 394,682
Other assets 113,572 115,668
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Total assets $2,369,048 $1,963,481
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LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $101,692 $67,176
Accrued compensation 88,872 81,639
Accrued marketing liabilities 79,327 66,800
Other accrued liabilities 102,253 121,165
Income taxes payable 76,144 78,139
Deferred revenue 47,126 47,801
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Total current liabilities 495,414 462,720
Minority interests 16,531 13,774
Shareholders' equity 1,857,103 1,486,987
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Total liabilities and
shareholders' equity $2,369,048 $1,963,481
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