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Novell meets Q1 estimates
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February 17, 2000: 7:06 p.m. ET
Networking software company's net income rises 55 percent
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NEW YORK (CNNfn) - Novell Inc., one of the leading providers of network and Internet directory software, reported first quarter net income that met analysts' expectations, but warned that its revenue slowed in January.
The Provo, Utah-based company reported net income of $45 million for the quarter ended Jan. 31, 2000, up 55 percent from $29 million in the same period last year. Earnings per share rose to 13 cents from 8 cents. Novell's results matched the mean analyst estimate for the quarter, according to a survey by earnings tracker First Call.
Novell (NOVL: Research, Estimates) reported that its revenue rose 11 percent to $316 million from the $286 million recorded in the first quarter of fiscal 1999. The first fiscal quarter is seasonally the company's weakest revenue quarter. The operating margin for the first fiscal quarter was 15 percent.
Revenue from Novell's NetWare server software totaled $154 million in the first quarter, up 6 percent from the first quarter of 1999. "Directory-enabled" Net services applications grew 10 percent to $80 million. Service, training and consulting revenue increased 37 percent to $50 million. Novell said that customer purchases slowed down in January after being strong in November and December.
Novell's shares rose 2 5/16 to 43-/16 in regular Nasdaq trading before the earnings were released. However, they fell 4-1/16 to 39 in after-hours trading, apparently in response the disclosure about revenues slowing in January.
Some of the features of Microsoft's new Windows 2000 software will compete with Novell's main software products.
Looking forward, the networking software company said it plans to bring new software products to market between now and the end of fiscal 2000 that address electronic commerce infrastructure, personal identity control, quality of service, policy-based management, cache management, and public key security. 
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Novell
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