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Novell Reports First Fiscal Quarter 1997 Results |
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PROVO, UT -- February 26, 1997 -- Novell, Inc. (NASDAQ:NOVL) today reported revenue of $375 million and net income of $51 million, or $0.15 per share, for its first fiscal quarter ended January 31, 1997. These results compare with revenue of $438 million and net income of $64 million, or $0.17 per share, in the first-quarter 1996. The year-earlier results included $61 million of revenue from discontinued or sold product lines and a one-time license payment associated with the sale of UnixWare. Novell's core business, network server operating systems, grew 10 percent from the year-ago period to $251 million. Within this segment, IntranetWare directory-enabled server products for intranets and the Internet grew 41 percent year-over-year to $185 million. Novell president and Chief Operating Officer Joseph A. Marengi said, "Despite market weakness in Europe and Japan that resulted in a slight sequential decline in revenue, we shipped more than 250,000 network server operating systems in the first quarter. With the introduction of IntranetWare for Small Business in January, we are delivering a highly affordable solution for the small network market. Worldwide, the growing acceptance of Novell Directory Services (NDS) across our customers' networks continues to drive market share gains for Novell network server operating systems in the large enterprise network market." "Rapid growth of IntranetWare products is important to Novell's strategy to provide network directory services required for business intranets and expanded business use of the Internet. We expect the current base of more than 20 million NDS users to grow substantially in 1997. IntranetWare server growth is a leading factor. Also contributing by the end of the year will be an expanding number of UNIX and Microsoft NT servers that take advantage of Novell network directory services. The adoption of NDS by server manufacturers, independent software vendors and leading telecommunications providers worldwide will continue to drive NDS as the de facto market standard for network directory services." During the quarter IntranetWare was named server product of the year by two leading trade publications. IntranetWare was also recognized as the preferred network server offering in a Computerworld survey of 5,000 information system professionals. The Computerworld survey also gave GroupWise, the leading network application from Novell, highest in customer satisfaction over Lotus Notes and other collaboration and messaging products used in network solutions. On the balance sheet, at the January 31 close of the first fiscal quarter, cash and short-term investments were $1.1 billion, up $78 million from fiscal year-end 1996. Founded in 1983, Novell (NASDAQ:NOVL) is the world's leading provider of network software. The company offers a wide range of network solutions for distributed network, Internet, intranet and small- business markets. Novell education and technical support programs are the most comprehensive in the network computing industry. Information about Novell's complete range of products and services can be accessed on the World Wide Web at http://www.novell.com. Forward looking statements in this release are made under the Safe Harbor Reform Act of 1996. These statements are based on current expectations and actual results may differ materially due to risks, uncertainties, and other factors. Additional information covering factors that could cause results to differ materially from projected statements can be found in Novell's 10-K and 10-Q filings, as well as the annual report. IntranetWare, NDS, and Novell Directory Services are trademarks of Novell, Inc. Novell is a registered trademark of Novell, Inc. in the United States and other countries.
Novell Contact: Novell, Inc.
First Fiscal Quarter Ended
January 31, January 27,
1997 1996
___________ ___________
Net sales $ 374,847 $ 437,919
Cost of sales 75,971 96,011
__________ __________
Gross profit 298,876 341,908
Operating expenses
Sales and mktg 127,890 123,465
Product development 71,755 78,633
General and
administrative 37,731 38,538
Restructuring charges -- 18,442
__________ __________
Total operating
expenses 237,376 259,078
__________ __________
Income from
operations 61,500 82,830
__________ __________
Other income, net 13,777 12,750
__________ __________
Income before
income taxes 75,277 95,580
Income taxes 24,465 32,019
__________ __________
Net income $ 50,812 $ 63,561
__________ __________
Net income
per share $ 0.15 $ 0.17
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Weighted average shares
outstanding 347,095 371,585
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Novell, Inc.
January 31, October 26,
1997 1996
___________ ___________
ASSETS
Cash and short-term
investments $1,102,321 $1,024,755
Receivables, net 393,490 452,327
Inventories 20,201 16,837
Prepaid expenses 53,578 59,009
Deferred income taxes 51,085 37,831
__________ __________
Total current assets 1,620,675 1,590,759
Property, plant
and equipment, net 400,516 394,684
Other assets 61,812 64,023
__________ __________
Total assets $2,083,003 $2,049,466
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LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 73,518 $ 96,933
Accrued compensation 50,207 54,731
Accrued marketing
liabilities 50,999 48,402
Other accrued
liabilities 94,651 118,133
Income taxes payable 34,231 --
Deferred revenue 49,976 46,573
__________ __________
Total current
liabilities 353,582 364,772
Minority interests 16,540 17,035
Put Warrants 46,650 52,150
Shareholders' equity 1,666,231 1,615,509
__________ __________
Total liabilities and
shareholders' equity $2,083,003 $2,049,466
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