Despite red ink, Novell remains upbeat

14 December, 2007

Novell Inc. has announced financial results for its fourth fiscal quarter and full fiscal year ended Oct. 31, 2007. For the quarter, Novell reported net revenue of US$245 million, which excludes $6 million of revenue from its Swiss-based business consulting unit, which Novell agreed to sell during the quarter. This compares to net revenue of $234 million for the fourth fiscal quarter 2006. The loss from operations for the fourth fiscal quarter 2007 was $13 million, compared to income from operations of $4 million for the fourth fiscal quarter 2006. The loss available to common stockholders from continuing operations in the fourth fiscal quarter 2007 was $9 million, or $0.03 loss per common share. This compares to income available to common stockholders from continuing operations of $21 million, or $0.05 per diluted common share, for the fourth fiscal quarter 2006. Foreign currency exchange rates favorably impacted total revenue by approximately $6 million and did not materially impact the loss from operations year-over-year.

For the full fiscal year 2007, Novell reported net revenue of $932 million and a loss available to common stockholders from continuing operations of $26 million, or $0.08 loss per common share. Comparatively, net revenue for the full fiscal year 2006 was $919 million and income available to common stockholders from continuing operations was $4 million, or $0.01 per diluted common share. Foreign currency exchange rates favorably impacted total revenue by approximately $15 million and negatively impacted the loss from operations by $5 million year-over-year. For the fourth fiscal quarter 2007, Novell reported $23 million of revenue from Open Platform Solutions, of which $22 million was from Linux Platform Products, up 69 per cent year-over-year. Linux Platform Products invoicing was $46 million during the quarter, up 108 per cent year-over-year. Revenue from Identity and Security Management was $33 million, of which Identity and Access Management was $30 million, up 27 per cent year-over-year. Revenue from Systems and Resource Management was $36 million, up 5 per cent year-over-year. Workgroup revenue of $88 million was up 1 per cent year-over-year. Additional information is available at: http://www.novell.com/company/ir/qresults.

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