Uncertainty Clouds Novell as Earnings Slump

There is no doubt that Novell is operating under a climate of anxiety. In March, a hedge fund knocked the enterprise software vendor off its axis with an unsolicited bid to take the company private, throwing the rest of Novell’s moves into considerable uncertainty.

Now, Novell has fallen short of its own guidance for the third fiscal quarter, and the company’s CFO, citing the ownership uncertainty, declined to offer guidance for the fourth quarter. However, despite the bleak balance sheet, Novell executives see a silver lining in the Linux partnership the company has signed with VMware. Datamation takes a look.

Enterprise software vendor Novell (NASDAQ: NOVL) fell short of its guidance for the third fiscal quarter of 2010, missing its financial projections with both revenues and income declining.

For the quarter, Novell reported revenue of $199 million, a decline of 8 percent from the third quarter of 2009. The company reported net income of $16 million, or $0.04 per share, dipping from the $17 million Novell posted in the third quarter of 2009.

Read the full story at Datamation:

Novell Disappoints as Ownership Concerns Continue

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