Linux products help Novell boost revenue in third quarter

Novell reported that net income loss for the third quarter of its 2007 fiscal year fell by nearly 50% year-on-year, and the company said revenue was up nearly 3% to $243m (£120m).

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Novell reported that net income loss for the third quarter of its 2007 fiscal year fell by nearly 50% year-on-year, and the company said revenue was up nearly 3% to $243m (£120m).

The company’s net income loss was $3.4m (£1.7m) compared to $6.4m in the same quarter last year. Revenue of $243m (£120m) was up compared to $234m a year ago. Its year-to-date totals for 2007 are $706m (£350m) in revenue and a loss of $25.5m (£12.6m) in net income.

Novell, however, said it was encouraged by its Linux Platform products, which accounted for $21m of the $22m in its Open Platform Solutions business. The figure represents a 77% increase over the third quarter of fiscal 2006. SUSE Linux Enterprise Server and Desktop make up the Linux Platform portfolio.

The numbers seem to indicate that Novell is benefiting in part from the licensing deal it struck with Microsoft last year.

Novell also said revenue from its Identity and Security Management business was $30m (£14.9m), including a total of $27m from identity and access management (IAM) that represents a 2% gain over the same quarter last year. The IAM products are Identity Manager, SecureLogin, Access Manager and Sentinel.

In addition, revenue from Novell’s Systems and Resource Management unit was up 4% to $35m (£17m). Revenue fell, however, in the Workgroup business unit by 2% to $83m (£41m), but the loss was less than expected.

“We're cautiously optimistic about the results here,” said Dana Russell, Novell’s CFO.

The Workgroup portfolio is made up of Open Enterprise Server, NetWare, Cluster Services, GroupWise and BorderManager.

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