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| 8-K - NOVELL, INC. Q1 FY11 8-K EARNINGS RELEASE - NOVELL INC | q111_8-k.htm |
FOR IMMEDIATE RELEASE
March 3, 2011
Novell Reports Financial Results for First Fiscal Quarter 2011
WALTHAM, Mass. – March 3, 2011 - Novell, Inc. (NASDAQ: NOVL) today announced financial results for its first fiscal quarter ended January 31, 2011. For the quarter, Novell reported net revenue of $191 million. This compares to net revenue of $202 million for the first fiscal quarter of 2010. GAAP income from operations for the first fiscal quarter of 2011 was $12 million. This compares to GAAP income from operations of $21 million for the first fiscal quarter of 2010. GAAP net loss in the first fiscal quarter of 2011 was $18 million, or a $0.05 loss per share, which included a $31 million net tax charge in connection with the planned repatriation of a majority of non-U.S. cash. This compares to GAAP net income of $20 million, or $0.06 per share, for the first fiscal quarter of 2010. Foreign currency exchange rates negatively impacted revenue and positively impacted operating expenses by $1 million and did not materially impact income from operations year-over-year.
On a non-GAAP basis, income from operations for the first fiscal quarter of 2011 was $31 million. This compares to non-GAAP income from operations of $33 million in the same period last year. Non-GAAP net income for the first fiscal quarter of 2011 was $26 million, or $0.07 per share. This compares to non-GAAP net income of $25 million, or $0.07 per share, for the first fiscal quarter of 2010. A reconciliation of GAAP to non-GAAP results is provided in the financial schedules as part of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Cash, cash equivalents and short-term investments were $1.1 billion at January 31, 2011, consistent with last quarter. Days sales outstanding in accounts receivable was 42 days at the end of the first fiscal quarter of 2011, down from 50 days at the end of the year-ago quarter. Total deferred revenue was $593 million at the end of the first fiscal quarter of 2011, down from $646 million at the end of the year-ago quarter. For the first fiscal quarter of 2011, cash flow from operations was $9 million. This compares to cash flow from operations of $5 million for the first fiscal quarter of 2010.
Further details on Novell's reported results are included in the financial schedules that are a part of this release.
Page 2 of 10
Non-GAAP Financial Measures
We supplement our consolidated unaudited condensed financial statements presented in accordance with GAAP with certain non-GAAP financial measures. These non-GAAP measures include adjusted income from operations, adjusted operating margin, adjusted net income and adjusted net income per share. We provide non-GAAP financial measures to enhance an overall understanding of our current financial performance and prospects for the future and to enable investors to evaluate our performance in the same way that management does. Management uses these same non-GAAP financial measures to evaluate performance, allocate resources, and determine compensation. The non-GAAP financial measures do not replace the presentation of our GAAP financial results, but they eliminate expenses and gains that are excluded from most analysts' consensus estimates, that are unusual, and/or that arise outside of the ordinary course of business, such as, but not limited to, those related to stock-based compensation, acquisition-related intangible asset amortization, restructuring, asset impairments, litigation judgments and settlements, strategic alternatives review, the sale of business operations, long-term investments, property, plant and equipment, and unusual and discrete income tax effects.
Legal Notice Regarding Forward-Looking Statements
This press release may include statements that are not historical in nature and that may be characterized as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to future financial and operating results, targets, and prospects; future opportunities; market leadership and positioning; short-term and long-term trends; the macroeconomic environment; customer priorities; timing of realization of projections; functionality, characteristics, quality and performance capabilities of Novell's products and technology; and results achievable and benefits attainable through deployment of Novell's products and provision of services. Forward-looking statements forecasting growth in financial metrics are predicated on assumptions regarding improvements in the overall economy and the markets served by Novell and in which Novell operates, the timing of which are impossible to accurately predict. Actual results may differ materially from the results discussed in or implied by such forward-looking statements, which are based upon information that is currently available to us and/or management’s current expectations and speak only as of the date hereof. We are subject to a number of risks, including, among others, the risk that our merger with Attachmate Corporation may be delayed or may not be consummated, the risk that the merger agreement may be terminated in circumstances that require Novell to pay Attachmate a termination fee of $60 million; risks related to the diversion of mangement's attention from Novell's ongoing business operations; risks regarding the failure of Attachmate to obtain the necessary financing to complete the merger; the effect of the announcement of the merger and the patent sale to CPTN Holdings LLC on Novell's business relationships (including, without limitation, partners and customers), operating results and business generally; and risks related to obtaining the requisite consents to the merger or the patent sale, including, without limitation, the timing (including possible delays) and receipt of regulatory approvals from various governmental entities (including any conditions, limitations or restrictions placed on these approvals) and the risk that one or more governmental entities may deny approval, as well as risks related to indirect sales, growth rates of our business units, renewal of SUSE® Linux Enterprise Server subscriptions with customers who have received certificates from Microsoft, decline rates of Open Enterprise Server and NetWare® revenue, development of products and services, the intelligent workload management market, software vulnerabilities, delays in product releases, reliance on open source software, adequacy of renewal rates, uncertain economic conditions, competition, rapid technological changes, failure to expand brand awareness, adequacy of technical support, pricing pressures, system failures, integration of acquisitions, industry consolidation, challenges resulting from a global business, foreign research and development operations, loss of key employees, intellectual property infringement, litigation matters, unpredictable financial results, impairments, the timing of revenue recognition, our investments and effective use of our cash.
Page 3 of 10
A detailed discussion of these and other factors that could affect our results is included in our SEC filings, including, but not limited to, our Annual Report on Form 10-K for the Fiscal Year Ended October 31, 2010 filed with the SEC on December 13, 2010, which may be obtained by calling (800) 317- 3195, or at our Investor Relations web page at: www.novell.com/company/ir.
We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any forward-looking statements contained in this press release to reflect any change of expectations with regard thereto or to reflect any change in events, conditions, or circumstances on which any such forward-looking statement is based, in whole or in part.
About Novell
Novell, Inc. (NASDAQ: NOVL), a leader in intelligent workload management, through WorkloadIQTM, helps organizations securely deliver and manage computing services across physical, virtual and cloud computing environments. We help customers reduce the cost, complexity, and risk associated with their IT systems through our solutions for identity and security, systems management, collaboration and Linux-based operating platforms. With our infrastructure software and ecosystem of partnerships, Novell integrates mixed IT environments, allowing people and technology to work as one. For more information, visit www.novell.com.
Copyright © 2011 Novell, Inc. All rights reserved. NetWare, Novell, the Novell Logo, the N Logo, and SUSE are registered trademarks and WorkloadIQ is a trademark of Novell, Inc. in the United States and other countries. All third party trademarks are the property of their respective owners.
| Press Contact: | Investor Relations Contact: |
| Ian Bruce | Robert Kain |
| Novell, Inc. | Novell, Inc. |
| Phone: 781-464-8034 | Phone: 800-317-3195 |
| E-Mail: ibruce@novell.com | E-Mail: rkain@novell.com |
| Page 4 of 10 | ||||||||
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Novell, Inc.
|
||||||||
|
Consolidated Unaudited Condensed Statements of Operations
|
||||||||
|
(In thousands, except per share data)
|
||||||||
|
Fiscal Quarter Ended
|
||||||||
|
Jan 31, 2011
|
Jan 31, 2010
|
|||||||
|
Net revenue:
|
||||||||
|
Software licenses
|
$ | 20,387 | $ | 21,193 | ||||
|
Maintenance and subscriptions
|
150,393 | 158,951 | ||||||
|
Services (1)
|
19,934 | 22,222 | ||||||
|
Total net revenue
|
190,714 | 202,366 | ||||||
|
Cost of revenue:
|
||||||||
|
Software licenses
|
1,520 | 1,688 | ||||||
|
Maintenance and subscriptions
|
20,819 | 22,572 | ||||||
|
Services
|
19,210 | 19,458 | ||||||
|
Total cost of revenue
|
41,549 | 43,718 | ||||||
|
Gross profit
|
149,165 | 158,648 | ||||||
|
Operating expenses:
|
||||||||
|
Sales and marketing
|
67,256 | 68,916 | ||||||
|
Product development
|
38,365 | 39,702 | ||||||
|
General and administrative
|
20,818 | 25,827 | ||||||
|
Other operating expenses (2)
|
11,173 | 2,774 | ||||||
|
Total operating expenses
|
137,612 | 137,219 | ||||||
|
Income from operations
|
11,553 | 21,429 | ||||||
|
Operating margin %
|
6.1 | % | 10.6 | % | ||||
|
Other income, net:
|
||||||||
|
Interest income, net
|
1,964 | 2,899 | ||||||
|
Other income, net
|
1,992 | 3,767 | ||||||
|
Total other income, net
|
3,956 | 6,666 | ||||||
|
Income before taxes
|
15,509 | 28,095 | ||||||
|
Income tax expense
|
33,451 | 7,906 | ||||||
|
Net (loss) income
|
$ | (17,942 | ) | $ | 20,189 | |||
|
(Loss) income per share
|
$ | (0.05 | ) | $ | 0.06 | |||
|
Weighted average shares
|
352,001 | 349,144 | ||||||
|
(1) Services includes professional services, technical support and training services.
|
||||||||
|
(2) See Page 7 of 10 for a detail of other operating expenses.
|
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| Page 5 of 10 | ||||||||
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Novell, Inc.
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||||||||
|
Consolidated Unaudited Condensed Balance Sheets
|
||||||||
|
(In thousands)
|
||||||||
|
Jan 31, 2011
|
Oct 31, 2010
|
|||||||
|
Assets
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 981,426 | $ | 685,594 | ||||
|
Short-term investments
|
150,009 | 441,096 | ||||||
|
Receivables, net
|
89,465 | 171,607 | ||||||
|
Prepaid expenses
|
15,280 | 16,233 | ||||||
|
Current deferred income taxes
|
36,137 | 49,169 | ||||||
|
Other current assets
|
21,126 | 33,725 | ||||||
|
Total current assets
|
1,293,443 | 1,397,424 | ||||||
|
Property, plant and equipment, net
|
151,378 | 156,033 | ||||||
|
Goodwill
|
353,818 | 353,415 | ||||||
|
Intangible assets, net
|
26,988 | 28,746 | ||||||
|
Deferred income taxes
|
227,363 | 243,583 | ||||||
|
Other assets
|
48,013 | 46,797 | ||||||
|
Total assets
|
$ | 2,101,003 | $ | 2,225,998 | ||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 30,102 | $ | 26,785 | ||||
|
Accrued compensation
|
49,319 | 83,181 | ||||||
|
Other accrued liabilities
|
66,412 | 86,223 | ||||||
|
Deferred revenue
|
448,744 | 487,590 | ||||||
|
Total current liabilities
|
594,577 | 683,779 | ||||||
|
Deferred income taxes
|
7,622 | 7,622 | ||||||
|
Other long-term liabilities
|
35,997 | 35,655 | ||||||
|
Long-term deferred revenue
|
144,065 | 163,394 | ||||||
|
Total liabilities
|
782,261 | 890,450 | ||||||
|
Stockholders' equity
|
1,318,742 | 1,335,548 | ||||||
|
Total liabilities and stockholders' equity
|
$ | 2,101,003 | $ | 2,225,998 | ||||
| Page 6 of 10 | ||||||||
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Novell, Inc.
|
||||||||
|
Consolidated Unaudited Condensed Statements of Cash Flows
|
||||||||
|
(In thousands)
|
||||||||
|
Fiscal Quarter Ended
|
||||||||
|
Jan 31, 2011
|
Jan 31, 2010
|
|||||||
|
Cash flows from operating activities
|
||||||||
|
Net (loss) income
|
$ | (17,942 | ) | $ | 20,189 | |||
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
||||||||
|
Stock-based compensation expense
|
6,060 | 6,450 | ||||||
|
Depreciation and amortization
|
7,347 | 7,437 | ||||||
|
Change in accounts receivable allowances
|
46 | (1,209 | ) | |||||
|
Gain on sale of previously impaired investments
|
- | (5,228 | ) | |||||
|
Deferred income taxes
|
29,341 | 4,496 | ||||||
|
Changes in assets and liabilities
|
(15,685 | ) | (26,939 | ) | ||||
|
Net cash provided by operating activities
|
9,167 | 5,196 | ||||||
|
Cash flows from investing activities
|
||||||||
|
Purchases of property, plant and equipment
|
(889 | ) | (8,128 | ) | ||||
|
Short-term investment activity
|
284,703 | 11,998 | ||||||
|
Long-term investment activity
|
- | 7,303 | ||||||
|
Cash proceeds from sale of discontinued operations
|
- | 243 | ||||||
|
Other
|
(738 | ) | 1,142 | |||||
|
Net cash provided by investing activities
|
283,076 | 12,558 | ||||||
|
Cash flows from financing activities
|
||||||||
|
Issuance of common stock
|
1,366 | 832 | ||||||
|
Excess tax effects from stock-based compensation
|
181 | 1 | ||||||
|
Net cash provided by financing activities
|
1,547 | 833 | ||||||
|
Effect of exchange rate changes on cash
|
2,042 | (3,193 | ) | |||||
|
Increase in cash and cash equivalents
|
295,832 | 15,394 | ||||||
|
Cash and cash equivalents - beginning of period
|
685,594 | 591,656 | ||||||
|
Cash and cash equivalents - end of period
|
$ | 981,426 | $ | 607,050 | ||||
|
Revisions were made to prior period amounts in order to conform to the current period's presentation.
|
||||||||
| Page 7 of 10 | ||||||||
|
Novell, Inc.
|
||||||||
|
Unaudited Non-GAAP Adjusted Income From Operations
|
||||||||
|
(In thousands)
|
||||||||
|
Fiscal Quarter Ended
|
||||||||
|
Jan 31, 2011
|
Jan 31, 2010
|
|||||||
|
GAAP income from operations
|
$ | 11,553 | $ | 21,429 | ||||
|
GAAP operating margin %
|
6.1 | % | 10.6 | % | ||||
|
Adjustments:
|
||||||||
|
Stock-based compensation expense:
|
||||||||
|
Cost of revenue
|
692 | 559 | ||||||
|
Sales and marketing
|
1,891 | 1,840 | ||||||
|
Product development
|
1,735 | 2,064 | ||||||
|
General and administrative
|
1,742 | 1,987 | ||||||
|
Sub-total
|
6,060 | 6,450 | ||||||
|
Acquisition-related intangible asset amortization:
|
||||||||
|
Cost of revenue
|
1,129 | 1,090 | ||||||
|
Sales and marketing
|
629 | 1,008 | ||||||
|
Sub-total
|
1,758 | 2,098 | ||||||
|
Other operating expenses (income):
|
||||||||
|
Restructuring expense
|
- | 2,774 | ||||||
|
Strategic alternatives review expense
|
10,478 | - | ||||||
|
Litigation related activity
|
695 | - | ||||||
|
Sub-total
|
11,173 | 2,774 | ||||||
|
Total operating adjustments
|
18,991 | 11,322 | ||||||
|
Non-GAAP income from operations
|
$ | 30,544 | $ | 32,751 | ||||
|
Non-GAAP operating margin %
|
16.0 | % | 16.2 | % | ||||
|
Novell, Inc.
|
||||||||
|
Unaudited Non-GAAP Adjusted Net Income
|
||||||||
|
(In thousands, except per share data)
|
||||||||
|
Fiscal Quarter Ended
|
||||||||
|
Jan 31, 2011
|
Jan 31, 2010
|
|||||||
|
GAAP net (loss) income
|
$ | (17,942 | ) | $ | 20,189 | |||
|
Operating adjustments (detailed above)
|
18,991 | 11,322 | ||||||
|
Non-operating expenses (income) adjustments:
|
||||||||
|
Gain on sale of previously impaired investments
|
- | (5,228 | ) | |||||
|
Sub-total
|
- | (5,228 | ) | |||||
|
Total pre-tax adjustments
|
18,991 | 6,094 | ||||||
|
Income tax adjustments
|
25,124 | (1,475 | ) | |||||
|
Total net adjustments
|
44,115 | 4,619 | ||||||
|
Non-GAAP net income
|
$ | 26,173 | $ | 24,808 | ||||
|
GAAP net (loss) income per share
|
$ | (0.05 | ) | $ | 0.06 | |||
|
Total adjustments detailed above
|
0.12 | 0.01 | ||||||
|
Non-GAAP net income per share
|
$ | 0.07 | $ | 0.07 | ||||
|
GAAP weighted average shares
|
352,001 | 349,144 | ||||||
|
Change from basic to diluted weighted average shares
|
4,326 | - | ||||||
|
Non-GAAP weighted average shares
|
356,327 | 349,144 | ||||||
| Page 8 of 10 | ||||||||||||||||||||||||||||
|
Novell, Inc.
|
||||||||||||||||||||||||||||
|
Consolidated Unaudited Condensed Segment Results
|
||||||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
| Fiscal Quarter Ended January 31, 2011 | ||||||||||||||||||||||||||||
|
Security,
|
||||||||||||||||||||||||||||
| Management and | Collaboration | Common | ||||||||||||||||||||||||||
|
Operating Platforms
|
%
|
Solutions
|
%
|
Unallocated
|
Total
|
%
|
||||||||||||||||||||||
|
Net revenue:
|
||||||||||||||||||||||||||||
|
Software licenses
|
$ | 12,692 | 10.5 | $ | 7,695 | 10.9 | $ | - | $ | 20,387 | 10.7 | |||||||||||||||||
|
Maintenance and subscriptions
|
93,323 | 77.5 | 57,070 | 81.1 | - | 150,393 | 78.9 | |||||||||||||||||||||
|
Services
|
14,357 | 11.9 | 5,577 | 7.9 | - | 19,934 | 10.5 | |||||||||||||||||||||
|
Total net revenue
|
120,372 | 100.0 | 70,342 | 100.0 | - | 190,714 | 100.0 | |||||||||||||||||||||
|
Cost of revenue:
|
||||||||||||||||||||||||||||
|
Software licenses
|
1,145 | 1.0 | 240 | 0.3 | 135 | 1,520 | 0.8 | |||||||||||||||||||||
|
Maintenance and subscriptions
|
13,381 | 11.1 | 6,290 | 8.9 | 1,148 | 20,819 | 10.9 | |||||||||||||||||||||
|
Services
|
13,684 | 11.4 | 4,988 | 7.1 | 538 | 19,210 | 10.1 | |||||||||||||||||||||
|
Total cost of revenue
|
28,210 | 23.4 | 11,518 | 16.4 | 1,821 | 41,549 | 21.8 | |||||||||||||||||||||
|
Gross profit
|
92,162 | 76.6 | 58,824 | 83.6 | (1,821 | ) | 149,165 | 78.2 | ||||||||||||||||||||
|
Operating expenses:
|
||||||||||||||||||||||||||||
|
Sales and marketing
|
51,681 | 42.9 | 13,055 | 18.6 | 2,520 | 67,256 | 35.3 | |||||||||||||||||||||
|
Product development
|
28,615 | 23.8 | 8,015 | 11.4 | 1,735 | 38,365 | 20.1 | |||||||||||||||||||||
|
General and administrative
|
12,275 | 10.2 | 6,801 | 9.7 | 1,742 | 20,818 | 10.9 | |||||||||||||||||||||
|
Other operating expenses
|
- | - | - | - | 11,173 | 11,173 | 5.9 | |||||||||||||||||||||
|
Total operating expenses
|
92,571 | 76.9 | 27,871 | 39.6 | 17,170 | 137,612 | 72.2 | |||||||||||||||||||||
|
Income (loss) from operations
|
$ | (409 | ) | (0.3 | ) | $ | 30,953 | 44.0 | $ | (18,991 | ) | $ | 11,553 | 6.1 | ||||||||||||||
| Fiscal Quarter Ended October 31, 2010 | ||||||||||||||||||||||||||||
|
Security,
|
||||||||||||||||||||||||||||
| Management and | Collaboration | Common | ||||||||||||||||||||||||||
|
Operating Platforms
|
%
|
Solutions
|
%
|
Unallocated
|
Total
|
%
|
||||||||||||||||||||||
|
Net revenue:
|
||||||||||||||||||||||||||||
|
Software licenses
|
$ | 18,915 | 14.7 | $ | 12,341 | 15.8 | $ | - | $ | 31,256 | 15.1 | |||||||||||||||||
|
Maintenance and subscriptions
|
93,360 | 72.8 | 59,917 | 76.6 | - | 153,277 | 74.2 | |||||||||||||||||||||
|
Services
|
16,044 | 12.5 | 5,934 | 7.6 | - | 21,978 | 10.6 | |||||||||||||||||||||
|
Total net revenue
|
128,319 | 100.0 | 78,192 | 100.0 | - | 206,511 | 100.0 | |||||||||||||||||||||
|
Cost of revenue:
|
||||||||||||||||||||||||||||
|
Software licenses
|
1,938 | 1.5 | 408 | 0.5 | 192 | 2,538 | 1.2 | |||||||||||||||||||||
|
Maintenance and subscriptions
|
14,546 | 11.3 | 6,822 | 8.7 | 1,149 | 22,517 | 10.9 | |||||||||||||||||||||
|
Services
|
14,627 | 11.4 | 4,722 | 6.0 | 664 | 20,013 | 9.7 | |||||||||||||||||||||
|
Total cost of revenue
|
31,111 | 24.2 | 11,952 | 15.3 | 2,005 | 45,068 | 21.8 | |||||||||||||||||||||
|
Gross profit
|
97,208 | 75.8 | 66,240 | 84.7 | (2,005 | ) | 161,443 | 78.2 | ||||||||||||||||||||
|
Operating expenses:
|
||||||||||||||||||||||||||||
|
Sales and marketing
|
52,139 | 40.6 | 12,687 | 16.2 | 3,015 | 67,841 | 32.9 | |||||||||||||||||||||
|
Product development
|
31,239 | 24.3 | 8,328 | 10.7 | 2,151 | 41,718 | 20.2 | |||||||||||||||||||||
|
General and administrative
|
13,419 | 10.5 | 7,413 | 9.5 | 2,820 | 23,652 | 11.5 | |||||||||||||||||||||
|
Other operating expenses
|
- | - | - | - | 6,225 | 6,225 | 3.0 | |||||||||||||||||||||
|
Total operating expenses
|
96,797 | 75.4 | 28,428 | 36.4 | 14,211 | 139,436 | 67.5 | |||||||||||||||||||||
|
Income (loss) from operations
|
$ | 411 | 0.3 | $ | 37,812 | 48.4 | $ | (16,216 | ) | $ | 22,007 | 10.7 | ||||||||||||||||
| Fiscal Quarter Ended January 31, 2010 | ||||||||||||||||||||||||||||
|
Security,
|
||||||||||||||||||||||||||||
| Management and | Collaboration | Common | ||||||||||||||||||||||||||
|
Operating Platforms
|
%
|
Solutions
|
%
|
Unallocated
|
Total
|
%
|
||||||||||||||||||||||
|
Net revenue:
|
||||||||||||||||||||||||||||
|
Software licenses
|
$ | 13,460 | 10.8 | $ | 7,733 | 10.0 | $ | - | $ | 21,193 | 10.5 | |||||||||||||||||
|
Maintenance and subscriptions
|
95,205 | 76.4 | 63,746 | 82.0 | - | 158,951 | 78.5 | |||||||||||||||||||||
|
Services
|
15,989 | 12.8 | 6,233 | 8.0 | - | 22,222 | 11.0 | |||||||||||||||||||||
|
Total net revenue
|
124,654 | 100.0 | 77,712 | 100.0 | - | 202,366 | 100.0 | |||||||||||||||||||||
|
Cost of revenue:
|
||||||||||||||||||||||||||||
|
Software licenses
|
1,334 | 1.1 | 227 | 0.3 | 127 | 1,688 | 0.8 | |||||||||||||||||||||
|
Maintenance and subscriptions
|
14,372 | 11.5 | 7,088 | 9.1 | 1,112 | 22,572 | 11.2 | |||||||||||||||||||||
|
Services
|
14,122 | 11.3 | 4,926 | 6.3 | 410 | 19,458 | 9.6 | |||||||||||||||||||||
|
Total cost of revenue
|
29,828 | 23.9 | 12,241 | 15.8 | 1,649 | 43,718 | 21.6 | |||||||||||||||||||||
|
Gross profit
|
94,826 | 76.1 | 65,471 | 84.2 | (1,649 | ) | 158,648 | 78.4 | ||||||||||||||||||||
|
Operating expenses:
|
||||||||||||||||||||||||||||
|
Sales and marketing
|
53,564 | 43.0 | 12,504 | 16.1 | 2,848 | 68,916 | 34.1 | |||||||||||||||||||||
|
Product development
|
29,915 | 24.0 | 7,723 | 9.9 | 2,064 | 39,702 | 19.6 | |||||||||||||||||||||
|
General and administrative
|
15,272 | 12.3 | 8,568 | 11.0 | 1,987 | 25,827 | 12.8 | |||||||||||||||||||||
|
Other operating expenses
|
- | - | - | - | 2,774 | 2,774 | 1.4 | |||||||||||||||||||||
|
Total operating expenses
|
98,751 | 79.2 | 28,795 | 37.1 | 9,673 | 137,219 | 67.8 | |||||||||||||||||||||
|
Income (loss) from operations
|
$ | (3,925 | ) | (3.1 | ) | $ | 36,676 | 47.2 | $ | (11,322 | ) | $ | 21,429 | 10.6 | ||||||||||||||
| Page 9 of 10 | ||||||||||||||||||||||||||||||||||||||||||||||||
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Novell, Inc.
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Unaudited Trended Segment Revenue by Software Licenses and Maintenance and Services
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Fiscal Year | Change from | |||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2010 |
%
|
Q4 2010 |
%
|
2010 |
%
|
Q1 2011 |
%
|
Q4 2010 to Q1 2011
|
Q1 2010 to Q1 2011
|
|||||||||||||||||||||||||||||||||||||||
|
Security, management and operating platforms
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Open platform solutions
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Linux platform products
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
$ | - | - | $ | - | - | $ | - | - | $ | - | - | $ | - | - | $ | - | - | ||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
37,473 | 18.5 | 36,256 | 17.6 | 144,411 | 17.8 | 37,807 | 19.8 | 1,551 | 4.3 | 334 | 0.9 | ||||||||||||||||||||||||||||||||||||
| 37,473 | 18.5 | 36,256 | 17.6 | 144,411 | 17.8 | 37,807 | 19.8 | 1,551 | 4.3 | 334 | 0.9 | |||||||||||||||||||||||||||||||||||||
|
Other open platform products
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
21 | 0.0 | 70 | 0.0 | 109 | 0.0 | 35 | 0.0 | (35 | ) | (50.0 | ) | 14 | 66.7 | ||||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
1,732 | 0.9 | 2,505 | 1.2 | 8,088 | 1.0 | 1,783 | 0.9 | (722 | ) | (28.8 | ) | 51 | 2.9 | ||||||||||||||||||||||||||||||||||
| 1,753 | 0.9 | 2,575 | 1.2 | 8,197 | 1.0 | 1,818 | 1.0 | (757 | ) | (29.4 | ) | 65 | 3.7 | |||||||||||||||||||||||||||||||||||
|
Total open platform solutions
|
39,226 | 19.4 | 38,831 | 18.8 | 152,608 | 18.8 | 39,625 | 20.8 | 794 | 2.0 | 399 | 1.0 | ||||||||||||||||||||||||||||||||||||
|
Identity and security management
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Identity, access and compliance management
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
7,132 | 3.5 | 10,912 | 5.3 | 34,508 | 4.3 | 5,715 | 3.0 | (5,197 | ) | (47.6 | ) | (1,417 | ) | (19.9 | ) | ||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
22,357 | 11.0 | 21,856 | 10.6 | 88,637 | 10.9 | 22,275 | 11.7 | 419 | 1.9 | (82 | ) | (0.4 | ) | ||||||||||||||||||||||||||||||||||
| 29,489 | 14.6 | 32,768 | 15.9 | 123,145 | 15.2 | 27,990 | 14.7 | (4,778 | ) | (14.6 | ) | (1,499 | ) | (5.1 | ) | |||||||||||||||||||||||||||||||||
|
Other identity and security management
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
177 | 0.1 | 393 | 0.2 | 1,416 | 0.2 | 137 | 0.1 | (256 | ) | (65.1 | ) | (40 | ) | (22.6 | ) | ||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
1,323 | 0.7 | 1,072 | 0.5 | 4,926 | 0.6 | 1,077 | 0.6 | 5 | 0.5 | (246 | ) | (18.6 | ) | ||||||||||||||||||||||||||||||||||
| 1,500 | 0.7 | 1,465 | 0.7 | 6,342 | 0.8 | 1,214 | 0.6 | (251 | ) | (17.1 | ) | (286 | ) | (19.1 | ) | |||||||||||||||||||||||||||||||||
|
Total identity and security management
|
30,989 | 15.3 | 34,233 | 16.6 | 129,487 | 15.9 | 29,204 | 15.3 | (5,029 | ) | (14.7 | ) | (1,785 | ) | (5.8 | ) | ||||||||||||||||||||||||||||||||
|
Systems and resource management
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
6,130 | 3.0 | 7,540 | 3.7 | 29,549 | 3.6 | 6,805 | 3.6 | (735 | ) | (9.7 | ) | 675 | 11.0 | ||||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
32,320 | 16.0 | 31,671 | 15.3 | 126,502 | 15.6 | 30,381 | 15.9 | (1,290 | ) | (4.1 | ) | (1,939 | ) | (6.0 | ) | ||||||||||||||||||||||||||||||||
|
Total systems and resource management
|
38,450 | 19.0 | 39,211 | 19.0 | 156,051 | 19.2 | 37,186 | 19.5 | (2,025 | ) | (5.2 | ) | (1,264 | ) | (3.3 | ) | ||||||||||||||||||||||||||||||||
|
Total security, management and operating platforms
|
108,665 | 53.7 | 112,275 | 54.4 | 438,146 | 54.0 | 106,015 | 55.6 | (6,260 | ) | (5.6 | ) | (2,650 | ) | (2.4 | ) | ||||||||||||||||||||||||||||||||
|
Collaboration solutions
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
OES and NetWare-related
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
4,113 | 2.0 | 6,128 | 3.0 | 20,831 | 2.6 | 3,223 | 1.7 | (2,905 | ) | (47.4 | ) | (890 | ) | (21.6 | ) | ||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
37,582 | 18.6 | 35,478 | 17.2 | 144,794 | 17.8 | 33,605 | 17.6 | (1,873 | ) | (5.3 | ) | (3,977 | ) | (10.6 | ) | ||||||||||||||||||||||||||||||||
| 41,695 | 20.6 | 41,606 | 20.1 | 165,625 | 20.4 | 36,828 | 19.3 | (4,778 | ) | (11.5 | ) | (4,867 | ) | (11.7 | ) | |||||||||||||||||||||||||||||||||
|
Collaboration
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
1,702 | 0.8 | 3,271 | 1.6 | 9,555 | 1.2 | 1,842 | 1.0 | (1,429 | ) | (43.7 | ) | 140 | 8.2 | ||||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
19,826 | 9.8 | 18,867 | 9.1 | 77,282 | 9.5 | 18,255 | 9.6 | (612 | ) | (3.2 | ) | (1,571 | ) | (7.9 | ) | ||||||||||||||||||||||||||||||||
| 21,528 | 10.6 | 22,138 | 10.7 | 86,837 | 10.7 | 20,097 | 10.5 | (2,041 | ) | (9.2 | ) | (1,431 | ) | (6.6 | ) | |||||||||||||||||||||||||||||||||
|
Other collaboration solutions
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
1,918 | 0.9 | 2,942 | 1.4 | 9,140 | 1.1 | 2,630 | 1.4 | (312 | ) | (10.6 | ) | 712 | 37.1 | ||||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
6,338 | 3.1 | 5,572 | 2.7 | 23,902 | 2.9 | 5,210 | 2.7 | (362 | ) | (6.5 | ) | (1,128 | ) | (17.8 | ) | ||||||||||||||||||||||||||||||||
| 8,256 | 4.1 | 8,514 | 4.1 | 33,042 | 4.1 | 7,840 | 4.1 | (674 | ) | (7.9 | ) | (416 | ) | (5.0 | ) | |||||||||||||||||||||||||||||||||
|
Total collaboration solutions
|
71,479 | 35.3 | 72,258 | 35.0 | 285,504 | 35.2 | 64,765 | 34.0 | (7,493 | ) | (10.4 | ) | (6,714 | ) | (9.4 | ) | ||||||||||||||||||||||||||||||||
|
Total software licenses, maintenance and subscriptions
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Software licenses
|
21,193 | 10.5 | 31,256 | 15.1 | 105,108 | 12.9 | 20,387 | 10.7 | (10,869 | ) | (34.8 | ) | (806 | ) | (3.8 | ) | ||||||||||||||||||||||||||||||||
|
Maintenance and subscriptions
|
158,951 | 78.5 | 153,277 | 74.2 | 618,542 | 76.2 | 150,393 | 78.9 | (2,884 | ) | (1.9 | ) | (8,558 | ) | (5.4 | ) | ||||||||||||||||||||||||||||||||
|
Total product revenue
|
180,144 | 89.0 | 184,533 | 89.4 | 723,650 | 89.1 | 170,780 | 89.5 | (13,753 | ) | (7.5 | ) | (9,364 | ) | (5.2 | ) | ||||||||||||||||||||||||||||||||
|
Services
|
22,222 | 11.0 | 21,978 | 10.6 | 88,221 | 10.9 | 19,934 | 10.5 | (2,044 | ) | (9.3 | ) | (2,288 | ) | (10.3 | ) | ||||||||||||||||||||||||||||||||
|
Total net revenue
|
$ | 202,366 | 100.0 | $ | 206,511 | 100.0 | $ | 811,871 | 100.0 | $ | 190,714 | 100.0 | $ | (15,797 | ) | (7.6 | ) | $ | (11,652 | ) | (5.8 | ) | ||||||||||||||||||||||||||
| Page 10 of 10 | ||||||||||
|
Novell, Inc.
|
||||||||||
|
Major IT Software and Solutions Included Within Reported Line Items
|
||||||||||
|
Security, Management and Operating Platforms
|
||||||||||
|
Open Platform Solutions
|
||||||||||
|
Linux Platform Products
|
||||||||||
|
> SUSE LINUX Enterprise Server
|
||||||||||
|
> SUSE LINUX Enterprise Desktop
|
||||||||||
|
Other Open Platform Products
|
||||||||||
|
> SUSE Engineering
|
||||||||||
|
Identity and Security Management
|
||||||||||
|
Identity, Access and Compliance Management
|
||||||||||
|
> Identity Manager
|
||||||||||
|
> SecureLogin
|
||||||||||
|
> Access Manager
|
||||||||||
|
> Sentinel
|
||||||||||
|
Other Identity and Security Management
|
||||||||||
|
> eDirectory
|
||||||||||
|
Systems and Resource Management
|
||||||||||
|
> ZENworks Suite
|
||||||||||
|
> ZENworks Patch Management
|
||||||||||
|
> ZENworks Asset Management
|
||||||||||
|
> ZENworks Linux Management
|
||||||||||
|
> ZENworks Configuration Management
|
||||||||||
|
> PlateSpin
|
||||||||||
|
> Novell Operations Center
|
||||||||||
|
Collaboration Solutions
|
||||||||||
|
Open Enterprise Server and NetWare-Related
|
||||||||||
|
> Open Enterprise Server (OES)
|
||||||||||
|
> NetWare
|
||||||||||
|
> Cluster Services
|
||||||||||
|
Collaboration
|
||||||||||
|
> GroupWise
|
||||||||||
|
> Vibe
|
||||||||||
|
Other Collaboration Solutions
|
||||||||||
|
> BorderManager
|
||||||||||
|
Services
|
||||||||||
|
> Professional Services
|
||||||||||
|
> Technical Support Services
|
||||||||||
|
|
> Training Services
|
|||||||||