Novell Reports Financial Results for First Fiscal Quarter 2005
Patrice Taurel - Sandrine Lorach - Bénédicte Noiré
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Novell Reports Financial Results for First Fiscal Quarter 2005
WALTHAM, Mass. * Feb. 22, 2005 - Novell, Inc. (NASDAQ:NOVL) today announced
financial results for its first fiscal quarter ended Jan. 31, 2005. For
the quarter, Novell reported revenues of $290 million, compared to revenues
of $267 million for the first fiscal quarter 2004. Net income available to
common stockholders in the first fiscal quarter 2005 was $392 million, or
$0.90 per diluted common share. This compared to net income available to
common stockholders of $10 million, or $0.03 per diluted common share, for
the first fiscal quarter 2004.
On a non-GAAP basis, adjusted net income available to common stockholders
for the first fiscal quarter 2005 was $10 million, or $0.03 per diluted
common share, which excludes a $448 million net gain on a previously
announced legal settlement with Microsoft, $6 million of restructuring
expense, a $2 million gain on a sale of property, $1 million of long-term
investment impairments and the related adjustments for income taxes and the
allocation of earnings to preferred stockholders. This compares to non-GAAP
adjusted net income available to common stockholders for the first fiscal
quarter 2004 of $11 million, or $0.03 per diluted common share, which
excludes the effect of long-term investment impairments of $1 million. Full
details on Novell's reported results, including a reconciliation of the
non-GAAP adjusted results, are included in the financial schedules that are
a part of this release.
In the first fiscal quarter 2005, foreign currency exchange rates favorably
impacted total revenue by approximately $10 million year-over-year. Foreign
currency exchange rates favorably impacted net income by $2 million
During the first fiscal quarter 2005, Novell recognized revenue of $15
million associated with its SUSE® LINUX business, including $7 million of
recognized revenue from subscriptions to SUSE LINUX Enterprise Server.
Sales of subscriptions to SUSE LINUX Enterprise Server totaled 21,000 units
in the quarter.
"Novell made steady progress on executing its strategy this quarter. We
still have work ahead of us as we continue to reposition the company in our
growth markets ," said Jack Messman, Chairman and CEO of Novell. "Our solid
balance sheet gives us increased financial flexibility to execute strategic
initiatives in the future."
On the balance sheet, cash and short-term investments were $1.7 billion at
Jan. 31, 2005, compared with $1.2 billion at Oct. 31, 2004. Days sales
outstanding (DSO) in accounts receivable was 59 days at the end of the
first fiscal quarter 2005, down from 60 days in the year ago quarter.
Deferred revenues were $343 million at the end of the first fiscal quarter
2005, up $49 million or 17% year over year. Cash flow from operations was
$452 million for the first fiscal quarter 2005, up from $31 million a year
ago, mainly due to the net $448 million Microsoft settlement payment.
A summary of Novell's vision, mission and strategy can be accessed on the
Novell® Web site at: www.novell.com/company/ir/qresults.
Conference call notification and Web access detail
A live Webcast of a Novell conference call to discuss the quarter will be
broadcast at 5PM ET Feb. 22, 2005, from Novell's Investor Relations Web
page: http://www.novell.com/company/ir/qresults/. The domestic conference
call dial-in number is 888-323-5254, password "Novell", and the
international dial-in number is +1-773-756-4625, password "Novell".
The call will be archived on the Web site approximately 15 minutes after
its conclusion, and will be available for telephone playback through
midnight, March 8. The domestic toll-free replay number is 888-562-2893,
and the international replay number is +1-402-530-7604.
A copy of this press release is posted on Novell's Web site at:
Legal notice regarding forward-looking statements
This press release includes statements that are not historical in nature
and that may be characterized as "forward-looking statements," including
those related to future financial and operating results, benefits and
synergies of the company's brands and strategies, future opportunities and
the growth of the market for open source solutions. You should be aware
that Novell's actual results could differ materially from those contained
in the forward-looking statements, which are based on current expectations
of Novell management and are subject to a number of risks and
uncertainties, including, but not limited to, Novell's ability to integrate
acquired operations and employees, Novell's success in executing its Linux
strategies, Novell's ability to deliver on its one Net vision of the
Internet, Novell's ability to take a competitive position in the Linux
industry, business conditions and the general economy, market
opportunities, potential new business strategies, competitive factors,
sales and marketing execution, shifts in technologies or market demand and
the other factors described in Novell's Annual Report on Form 10-K filed
with the Securities and Exchange Commission on Jan. 13, 2005. Novell
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of this
Novell, Inc. is a leading provider of information solutions that deliver
secure identity management (Novell Nsure®), Web application development
(Novell exteNd*) and cross-platform networking services (Novell
Nterprise*), all supported by strategic consulting and professional
services (Novell NgageSM). Active in the open source community with its
Ximian® and SUSE LINUX brands, Novell provides a full range of Linux
products and services for the enterprise from the desktop to the server..
Novell's vision of one Net * a world without information boundaries * helps
customers realize the value of their information securely and economically.
For more information, call Novell's Customer Response Center at (888)
321-4CRC (4272) or visit http://www.novell.com. Press should visit
Novell, Nsure and Ximian are registered trademarks; exteNd and Nterprise
are trademarks; and Ngage is a service mark of Novell, Inc. in the United
States and other countries. SUSE is a registered trademark of SUSE LINUX
AG, a Novell business. *All third-party trademarks are the property of
their respective owners.