DOW JONES NEWSWIRES
Software company Novell Inc. (NOVL) swung to a fiscal
third-quarter profit amid prior-year charges as margins grew and
revenue from its Linux-platform products rose 22%.
But shares fell about 4.5% in after-hours trading as revenue
came in slightly under expectations because of slowing in its other
businesses.
Novell, which works with open source and proprietary software,
is trying to boost the presence of its Linux-based operating
system, Moblin, in low-end netbooks, which have lately become hot
items. This year, it has announced it will work with Intel Corp.
(INTC) to foster the system in netbooks. It also will partner with
Affiliated Computer Services Inc. (ACS) to bolster its
information-technology operations.
For the quarter ended July 31, Novell earned $17 million, or 5
cents a share, compared with a year-earlier loss of $15 million, or
4 cents a share a share. Excluding items such as stock-compensation
and acquisition costs, earnings rose to 7 cents from 5 cents.
Revenue slid 12% to $216 million.
Analysts surveyed by Thomson Reuters projected a 7-cent profit
and $217 million of revenue.
-By Alexandra Scaggs, Dow Jones Newswires; 212-416-2673;
alexandra.scaggs@dowjones.com