“With Linux running more and more on the worldwide servers and being a greater presence on the desktops and other areas, I believe we have a tremendous opportunity before us.”
Novell said it has ousted CEO Jack Messman and
CFO Joseph S. Tibbetts Jr., a significant but unsurprising management
shake-up for the struggling software company.
The company’s board of directors tabbed President Ronald W. Hovsepian CEO
and board member effective immediately. Dana C. Russell, vice president of
finance and corporate controller at Novell, will serve as interim CFO while
the company looks to fill the position.
Ronald Hovsepian
Source: Novell
Novell, headquartered in Waltham, Mass., began retooling as a mixed-source vendor under Messman, offering open source Linux and identity and
resource management software to compete with companies such as Red Hat , IBM
and Oracle
.
But the company needs new blood or something to snap out of the recent
second quarter financial funk that yielded analyst downgrades and renewed
support for top rival Red Hat.
Total revenue slipped to $287 million from $297 million, while maintenance
and services revenue dropped to $238 million from $251 million.
“The Board concluded that a management change would be the best way to
accelerate the execution of our growth strategy and build value for
shareholders,” said Thomas G. Plaskett, a director of Novell since November
2002 and new chairman of the Novell board.
Plaskett said on a conference call the changes had nothing to do with
accounting issues or other improprieties.
“The board’s decision was based purely on an evaluation of who is best
suited to lead the company going forward at this stage of the company’s
development.”
He also credited Messman and Tibbetts Jr. with leading Novell through a
period of dramatic change in the software and IT sectors.
As for Hovsepian, Plaskett said the executive has played an integral role in
developing the company’s open enterprise strategy, directing product
development, marketing, sales, consulting and technical services.
“As CEO, my top priority will be to accelerate the speed and urgency behind the execution of our business strategy and the transition to our Linux-based products, identity and resource management,” Hovsepian said on the call.
Messman will remain on Novell’s Board of Directors until Oct. 31, 2006.
Novell Ousts CEO Messman, CFO
