 |
|
|
|
| Press Release |
|
|
|
Novell Reports Third Fiscal Quarter 2000 Results: Revenue of $270 Million and Earnings of $0.03 Per Share |
|||||
|
|||||
|
|||||
|
|
||||
|
PROVO, Utah August 16, 2000 Novell, Inc. (NASDAQ:NOVL) today reported revenue of $270 million, and earnings on a diluted basis of $0.03 per share, for its third fiscal quarter ended July 31, 2000. During its third quarter in fiscal 1999, the company reported revenue of $327 million and earnings on a diluted basis of $0.14 per share. For the first nine months of fiscal 2000, Novell reported revenue of $888 million and net income of $84 million, or $0.25 per share on a diluted basis. For the similar period in fiscal 1999, the company reported revenue of $928 million and net income of $117 million, or $0.33 per share. "Although we met our total revenue and earnings objectives for the third quarter, we are nonetheless disappointed by continued weakness of packaged software sales globally, and especially our poor performance in Europe," said Novell chairman and CEO Eric Schmidt. "The quarter was impacted by difficult changes intended to improve Novell's business. In mid-quarter new leadership reorganized Novell sales around new geographies, solution-selling and channel support. New product groups were formed to make Novell more responsive to customers." "In late May we said it would take upwards of nine months to address the issues in our business. In the fourth quarter we will take additional action to ensure our expenses are in line with revenue. Our revenue run rate will enable us to do this without impacting investments in our key opportunities. It will also enable us to continue the move of our valued NetWare and GroupWise franchises into the Web. We intend these actions to improve the business in 2001, as we build the value of the Novell brand and accelerate deployment of Novell Net services that support how business is done on the Net." The company also announced that the Novell Board of Directors has authorized the expenditure of up to $500 million in a share repurchase program. Novell will make purchases of its common stock in open market transactions. In the third quarter, new business resulting from decisions to make large eDirectory deployments included Toyota NA for a global business-to-business network and an emerging eGovernment solution in Ireland. By quarter-end Novell was addressing more than 100 proposals for eDirectory and Net service deployments in conjunction with Andersen Consulting, Cap Gemini, Deloitte& Touche, marchFIRST, and other leading consulting systems integrators. Within this group, major assessments collectively represent a business potential of more than 100 million eDirectory users. Commercial business-to-business and very large government deployments are being assessed worldwide. By geography, United States revenue was $160 million in the third quarter, down 12 percent year-over-year. The Europe, Middle East, and Africa region declined 30 percent to $70 million. In Asia Pacific, revenue of $22 million was down 8 percent. Revenue in the Americas region outside the U.S. was down 12 percent to $17 million. By product category, service, education and solutions consulting revenue was up 13 percent to $56 million on the strength of growing assessments of Net service deployments. Net services applications declined 3 percent year-over-year to $78 million in the third fiscal quarter. NetWare server software was down 29 percent year-over-year to $120 million. Product revenue from older pre-directory products declined 42 percent year-over-year to $16 million. On the balance sheet, cash and short-term investments were $677 million at the end of the third quarter, compared with $895 million at the October 1999 fiscal year-end. Cash flow from operations in the quarter was $102 million. Deferred revenue from pre-paid maintenance associated with site-licenses for Novell Net services was $185 million, its highest level ever, up 24 percent year-over-year. This press release contains forward-looking statements about future product flows, changing markets, marketing efforts, near and long-term objectives, potential new business, strategies, organization changes, distribution channels, Net services, and anticipated demand for new offerings from markets that Novell is entering. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. The risks and uncertainties include the following: business conditions and the general economy; changes in distribution choices and channel partners; competitive factors; sales and marketing execution; shifts in technologies or market demand. Additional information covering factors that could cause results to differ materially from projected statements can be found in Novell's fiscal 1999 report on Form 10-K, as well as in its annual report and Form 10-Q filings. About Novell Novell, Inc. (NASDAQ:NOVL), is the leading provider of Net services software that delivers services to secure and power all types of networksthe Internet, intranets, and extranets; wired to wireless; corporate and publicacross leading operating systems. Novell's Net services software provides the foundation for one Neta single global network that supports new applications and forms of business. Worldwide channel, consulting, education and technical support programs, along with strategic alliances, combine Novell Net services software with third-party products and services to form complete Net solutions. For information on Novell's complete range of products and services, contact Novell's Customer Response Center at (888) 321-4CRC (4272), or visit Novell's Web site at http://www.novell.com. Press may access Novell announcements and company information on the World Wide Web at http://www.novell.com/pressroom. In addition, detailed comparisons between Novell products and competitive offerings from other vendors are available on the Web at http://www.novell.com/competitive. Novell, NetWare and GroupWise are registered trademarks and eDirectory is a trademark of Novell, Inc. in the United States and other countries. All third-party trademarks are the property of their respective owners. Press Contacts:
Raymond Nasr |
|||||
|
|||||
