Exhibit 99.1
FOR IMMEDIATE RELEASE
Aug. 19, 2004
Novell reports financial results for third fiscal quarter 2004
• Reports improved earnings performance
• Embraces Linux, a disruptive technology, as the basis for its strategic growth
• Identity management solutions create the first line of defense for information security
WALTHAM, Massachusetts – August 19, 2004 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its third fiscal quarter ended July 31, 2004. For the quarter, Novell reported revenues of $305 million, compared to revenues of $283 million for the third fiscal quarter 2003. Net income available to common stockholders in the third fiscal quarter 2004 was $23 million, or $0.06 per diluted common share. This compared to a net loss available to common stockholders of $12 million, or $0.03 loss per common share, for the third fiscal quarter 2003.
Included in Novell's financial results for the third fiscal quarter 2004 is revenue of $14 million and interest income of $5 million from The Canopy Group, Inc. as a result of a previously announced legal judgment in favor of Novell.
On a non-GAAP basis, adjusted net income available to common stockholders for the third fiscal quarter 2004 was $14 million, or $0.04 per diluted common share, which excludes the effect of the payment from Canopy of $19 million, restructuring charges of $9 million and investment impairments of $1 million. This compares to non-GAAP adjusted net income available to common stockholders for the third fiscal quarter 2003 of $7 million, or $0.02 per diluted common share. Full details on Novell’s reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial schedules that are a part of this release.
In the third fiscal quarter 2004, foreign currency exchange rates favorably impacted total revenue by approximately $5 million year-over-year. There was no material foreign currency impact to net income.
Also in the third fiscal quarter 2004, Novell recognized revenue of $12 million associated with its SUSE LINUX business. Sales of subscriptions to SUSE LINUX Enterprise Server reached 19,000 units in the quarter, with 12,000 of the units sold to one customer.
For the first nine months of fiscal 2004, Novell reported revenue of $865 million and net income of $44 million. The net income available to common stockholders in this period was $18 million, or $0.05 per diluted common share, after consideration of a $26 million deemed dividend related to the beneficial conversion feature of preferred stock and related preferred stock cash dividends. For the first nine months of fiscal 2003, the company reported revenue of $819 million and a net loss available to common stockholders of $53 million, or $0.14 loss per common share.
“While revenue was not as strong as we would have liked, Novell improved earnings performance for the quarter and nine months period versus the same periods last year,” said Jack Messman, Chairman and CEO of Novell. “ Novell's transition to growth company status is well underway as we strengthen our products and services in both the Linux and identity management categories. Our SUSE LINUX business performed well in this quarter and is proving instrumental in positioning Novell as a strategic vendor to large enterprises. Our identity management products and services are creating the first line of defense for corporations seeking to improve the security and effectiveness of their information systems.”
Messman added, “We are witnessing the early impact of Linux, a disruptive technology, as it gives enterprises incomparable choices and flexibility in lowering their costs and reducing their vulnerability to security breaches. The collective innovation of the open source community that supports Linux will significantly disrupt the historical order in the information technology market to the benefit of corporations and consumers.”
On the balance sheet, cash and short-term investments were $1.1 billion at July 31, 2004, compared with $636 million at April 30, 2004. This increase in cash and short-term investments is primarily attributable to the issuance of $600 million of convertible senior debentures during the quarter and positive cash flow from operations of $65 million, offset by the repurchase of $125 million of common stock. Days sales outstanding (DSO) in accounts receivable increased to 77 days at the end of the third fiscal quarter 2004, up from 67 days in the prior quarter. Deferred revenues were $337 million at the end of the third fiscal quarter 2004, up $42 million or 14% year over year. Stockholders' equity at July 31, 2004 declined $72 million from April 30, 2004 as a result of the repurchase of $125 million of common stock, offset by $23 million in net income available to common stockholders and $25 million from conversion of preferred stock into common stock. Cash flow from operations, including the payment from Canopy, was $65 million for the third fiscal quarter 2004, up $60 million from a year ago.
A summary of Novell’s vision, mission and strategy can be accessed on the Novell® Web site at:www.novell.com/company/ir/qresults.
Conference call notification and Web access detail
A live Webcast of a Novell® conference call to discuss the quarter will be broadcast at 5PM EDT August 19, 2004, from Novell’s Investor Relations Web page:http://www.novell.com/company/ir/qresults/. The domestic conference call dial-in number is 888-323-5254, password “Novell”, and the international dial-in number is +1-773-756-4625, password “Novell”.
The call will be archived on the Web site approximately 15 minutes after its conclusion, and will be available for telephone playback through midnight, September 2. The domestic toll-free replay number is 866-360-3305, and the international replay number is +1-203-369-0160.
A copy of this press release is posted on Novell's Web site at: http://www.novell.com/company/ir/qresults/.
Legal notice regarding forward looking statements
This press release includes statements that are not historical in nature and that may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits and synergies of the company’s brands and strategies, future opportunities and the growth of the market for open source solutions. You should be aware that Novell’s actual results could differ materially from those contained in the forward-looking statements, which are based on current expectations of Novell management and are subject to a number of risks and uncertainties, including, but not limited to, Novell’s ability to integrate acquired operations and employees, Novell’s success in executing its Linux strategies, Novell’s ability to deliver on its one Net vision of the Internet, Novell’s ability to take a competitive position in the Linux industry, business conditions and the general economy, market opportunities, potential new business strategies, competitive factors, sales and marketing execution, shifts in technologies or market demand and the other factors described in Novell's Current Report on Form 8-K filed with the Securities and Exchange Commission on July 2, 2004. Novell disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
About Novell
Novell, Inc. is a leading provider of information solutions that deliver secure identity management (Novell Nsure™), Web application development (Novell exteNd™) and cross-platform networking services (Novell Nterprise™), all supported by strategic consulting and professional services (Novell NgageSM). Active in the open source community with its Ximian® and SUSE LINUX brands, Novell provides a full range of Linux products and services for the enterprise from the desktop to the server. Novell’s vision of one Net – a world without information boundaries – helps customers realize the value of their information securely and economically. For more information, call Novell’s Customer Response Center at (888) 321-4CRC (4272) or visithttp://www.novell.com. Press should visithttp://www.novell.com/pressroom.
_________________
Novell and Ximian are registered trademarks; exteNd, Nsure and Nterprise are trademarks; and Ngage is a service mark of Novell, Inc. in the United States and other countries. SUSE is a registered trademark of SUSE LINUX AG, a Novell company. *All third-party trademarks are the property of their respective owners.
Press Contact:
Bruce Lowry
Novell, Inc.
Phone: 415-298-7693
E-Mail: blowry@novell.com
Investor Relations Contact:
Bill Smith
Novell, Inc.
Phone: 800-317-3195
E-Mail: wsmith@novell.com
Novell, Inc. Consolidated Unaudited Condensed Statements of Operations (In thousands, except per share data) Fiscal Quarter Ended Fiscal Year-to-Date ----------------------------------- ------------------------------------ Jul 31, 2004 Jul 31, 2003 Jul 31, 2004 Jul 31, 2003 --------------- --------------- --------------- ---------------- Net revenue New software licenses $ 58,693 $ 69,255 $ 173,768 $ 194,758 Maintenance and services 245,904 213,554 691,492 623,989 --------------- --------------- --------------- ---------------- Total net revenue 304,597 282,809 865,260 818,747 --------------- --------------- --------------- ---------------- Cost of revenue New software licenses 5,613 5,886 16,621 17,070 Maintenance and services 98,343 101,591 288,653 296,742 Intangible asset impairments - 23,569 - 23,569 --------------- --------------- --------------- ---------------- Total cost of revenue 103,956 131,046 305,274 337,381 --------------- --------------- --------------- ---------------- Gross profit 200,641 151,763 559,986 481,366 --------------- --------------- --------------- ---------------- Operating expenses Sales and marketing 90,998 92,470 266,413 292,512 Product development 49,052 48,178 151,282 139,454 General and administrative 28,729 28,379 79,201 86,663 Restructuring 9,250 26,350 13,987 35,025 Gain on sale of property, plant and equipment - (24,934) (1,977) (24,934) --------------- --------------- --------------- ---------------- Total operating expenses 178,029 170,443 508,906 528,720 --------------- --------------- --------------- ---------------- Income (loss) from operations 22,612 (18,680) 51,080 (47,354) Other income (expense), net 6,182 (5,082) 9,034 (23,746) --------------- --------------- --------------- ---------------- Income (loss) before taxes 28,794 (23,762) 60,114 (71,100) Income tax expense (benefit) 5,389 (11,362) 16,191 (18,200) --------------- --------------- --------------- ---------------- Net income (loss) 23,405 (12,400) 43,923 (52,900) Deemed dividend related to beneficial conversion feature of preferred stock - - (25,680) - Preferred stock dividends (189) - (291) - --------------- --------------- --------------- ---------------- Net income (loss) available to common stockholders $ 23,216 $ (12,400) $ 17,952 $ (52,900) =============== =============== =============== ================ Net income (loss) per common share: Basic $ 0.06 $ (0.03) $ 0.05 $ (0.14) Diluted $ 0.06 $ (0.03) $ 0.05 $ (0.14) Weighted average shares: Basic 383,400 371,484 382,678 369,435 Diluted 397,776 371,484 396,943 369,435 Certain reclassifications, none of which affected net income, were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Consolidated Unaudited Condensed Balance Sheets (In thousands) ASSETS Jul 31, 2004 Oct 31, 2003 ------------------ ------------------ Current assets Cash, cash equivalents and short-term investments $1,149,387 $ 751,852 Receivables, net 245,373 232,492 Prepaid expenses 30,458 23,005 Other current assets 25,389 23,204 ------------------ ------------------ Total current assets 1,450,607 1,030,553 Property, plant and equipment, net 246,242 255,526 Long-term investments 56,122 50,948 Goodwill 405,448 213,300 Intangible assets, net 51,313 10,800 Other assets 20,911 6,526 ------------------ ------------------ Total assets $2,230,643 $1,567,653 ================== ================== LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 52,781 $ 50,258 Accrued compensation 115,430 101,164 Other accrued liabilities 103,670 117,073 Income taxes payable 40,504 35,493 Deferred revenue 337,461 322,470 ------------------ ------------------ Total current liabilities 649,846 626,458 Deferred income taxes 16,959 - Long-term debt 600,000 - ------------------ ------------------ Total liabilities 1,266,805 626,458 Minority interests 6,798 6,725 Preferred stock 25,000 - Stockholders' equity 932,040 934,470 ------------------ ------------------ Total liabilities and stockholders' equity $2,230,643 $1,567,653 ================== ================== Certain reclassifications, none of which affected net income, were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Consolidated Unaudited Condensed Statements of Cash Flows (In thousands) Fiscal Quarter Ended Fiscal Year-to-Date ------------------------------- ------------------------------- Jul 31, 2004 Jul 31, 2003 Jul 31, 2004 Jul 31, 2003 -------------- -------------- -------------- -------------- Cash flows from operating activities: Net income (loss) $ 23,405 $ (12,400) $ 43,923 $ (52,900) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Gain (loss) on sale of property, plant and equipment 10 (24,934) (1,967) (25,299) Depreciation and amortization 11,854 14,190 38,946 49,174 Non-cash restructuring charges 4,454 14,551 9,191 23,226 Intangible asset impairments, net of tax - 13,935 - 13,935 Long-term investment impairments 552 8,040 2,448 32,563 Changes in assets and liabilities 24,582 (7,885) (24,947) (38,689) -------------- -------------- -------------- -------------- Net cash provided by operating activities 64,857 5,497 67,594 2,010 -------------- -------------- -------------- -------------- Cash flows from financing activities: Issuance of common stock, net 1,364 807 47,984 7,854 Issuance of preferred stock - - 50,000 - Issuance of long-term debt 600,000 - 600,000 - Payment of issuance costs on long-term debt (14,850) - (14,850) - Payment of preferred stock dividend (190) - (292) - Repurchase of common stock - held in treasury (125,000) - (125,000) - -------------- -------------- -------------- -------------- Net cash provided by financing activities 461,324 807 557,842 7,854 -------------- -------------- -------------- -------------- Cash flows from investing activities: Expenditures for property, plant and equipment (7,511) (8,828) (19,524) (30,605) Proceeds from the sale of property, plant and equipment 163 124,215 2,140 125,000 Short-term investment activity (193,567) (44,438) (193,514) (117,240) Cash paid for SUSE LINUX - - (211,468) - Cash received from SUSE LINUX - - 11,170 - Cash paid for Salmon (8,470) - (8,470) - Cash received from Salmon 3,148 - 3,148 - Other 222 (1,100) (2,212) (329) -------------- -------------- -------------- -------------- Net cash (used) provided by investing activities (206,015) 69,849 (418,730) (23,174) -------------- -------------- -------------- -------------- Increase (decrease) in cash and cash equivalents 320,166 76,153 206,706 (13,310) Cash and cash equivalents - beginning of period 253,472 374,524 366,932 463,987 -------------- -------------- -------------- -------------- Cash and cash equivalents - end of period 573,638 450,677 573,638 450,677 Short-term investments - end of period 575,749 288,100 575,749 288,100 -------------- -------------- -------------- -------------- Cash and short-term investments - end of period $1,149,387 $ 738,777 $1,149,387 $ 738,777 ============== ============== ============== ============== Certain reclassifications, none of which affected net income, were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Unaudited Non-GAAP Adjusted Earnings Information (In thousands, except per share data) GAAP Non-GAAP As Reported Adjustments Adjusted -------------------------------------------- Fiscal quarter ended July 31, 2004 Net revenue $ 304,597 $ (13,500) (a) $ 291,097 Gross profit 200,641 (13,500) (a) 187,141 Income (loss) from operations 22,612 (4,070) (b) 18,542 Income (loss) before taxes 28,794 (8,561) (c) 20,233 Net income (loss) 23,405 (9,453) (d) 13,952 Net income (loss) available to common stockholders 23,216 (9,453) (d) 13,763 Diluted net income (loss) per common share $ 0.06 $ (0.02) (d) $ 0.04 Fiscal quarter ended April 30, 2004 Net revenue $ 293,556 $ - $ 293,556 Gross profit 187,114 - 187,114 Income (loss) from operations 14,462 2,929 (e) 17,391 Income (loss) before taxes 14,837 3,679 (f) 18,516 Net income (loss) 10,383 3,408 (g) 13,791 Net income (loss) available to common stockholders (15,399) 29,088 (h) 13,689 Diluted net income (loss) per common share $ (0.04) $ 0.07 (h) $ 0.03 Fiscal quarter ended July 31, 2003 Net revenue $ 282,809 $ - $ 282,809 Gross profit 151,763 23,569 (i) 175,332 Income (loss) from operations (18,680) 25,485 (j) 6,805 Income (loss) before taxes (23,762) 33,485 (k) 9,723 Net income (loss) (12,400) 19,235 (l) 6,835 Net income (loss) available to common stockholders (12,400) 19,235 (l) 6,835 Diluted net income (loss) per common share $ (0.03) $ 0.05 (l) $ 0.02 Footnotes related to adjustments: (a) Reflects satisfaction of judgment against The Canopy Group, Inc. recorded as revenue of $13.5 million. (b) Reflects the item in footnote (a), restructuring charges of $9.3 million and integration costs related to SUSE of $0.2 million. (c) Reflects the items in footnotes (a) and (b), satisfaction of judgment against The Canopy, Group Inc. recorded as interest income of $5 million and long-term investment impairments of $0.6 million. (d) Reflects the items in footnotes (a), (b) and (c), and the necessary related tax adjustments. (e) Reflects restructuring charges of $4.7 million, a gain on the sale of property, plant and equipment of $2.0 million and integration costs related to SUSE of $0.2 million. (f) Reflects the items in footnote (e) and long-term investment impairments of $0.8 million. (g) Reflects the items in footnotes (e) and (f), and the necessary related tax adjustments. (h) Reflects the items in footnotes (e), (f) and (g), and a beneficial conversion feature of $25.7 million. (i) Reflects intangible asset impairments of $23.6 million. (j) Reflects the item in footnote (i), restructuring reserves of $26.4 million, a gain on sale of facilities in San Jose, CA of $24.9 million and an adjustment to prior merger reserves of $0.5 million. (k) Reflects the items in footnotes (i) and (j), and long-term investment impairments of $8.0 million. (l) Reflects the items in footnotes (i), (j) and (k), and the necessary related tax adjustments. Certain reclassifications, none of which affected net income, were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Consolidated Unaudited Condensed Statements of Operations (In thousands, except per share data) Fiscal Year Trailing Four Q3 2003 % 2003 % Q2 2004 % Q3 2004 % Quarters % ------------------ ---------- ------- ------------------- ---------------- ----------------- Net revenue New software licenses $ 69,255 24.5 $ 265,256 24.0 $ 60,306 20.5 $ 58,693 19.3 $ 244,266 21.2 Maintenance and services 213,554 75.5 840,240 76.0 233,250 79.5 245,904 80.7 907,743 78.8 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Total net revenue 282,809 100.0 1,105,496 100.0 293,556 100.0 304,597 100.0 1,152,009 100.0 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Cost of revenue New software licenses 5,886 2.1 22,210 2.0 6,087 2.1 5,613 1.8 21,762 1.9 Maintenance and services 101,591 35.9 392,939 35.5 100,355 34.2 98,343 32.3 384,849 33.4 Intangible asset impairments 23,569 8.3 23,569 2.1 - - - - - - ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Total cost of revenue 131,046 46.3 438,718 39.7 106,442 36.3 103,956 34.1 406,611 35.3 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Gross profit 151,763 53.7 666,778 60.3 187,114 63.7 200,641 65.9 745,398 64.7 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Operating expenses Sales and marketing 92,470 32.7 380,826 34.4 93,646 31.9 90,998 29.9 354,727 30.8 Product development 48,178 17.0 183,758 16.6 52,031 17.7 49,052 16.1 195,586 17.0 General and administrative 28,379 10.0 110,963 10.0 24,215 8.2 28,729 9.4 103,501 9.0 Restructuring 26,350 9.3 43,067 3.9 4,737 1.6 9,250 3.0 22,029 1.9 Purchased in-process R&D - - 920 0.1 - - - - 920 0.1 Gain on sale of property, plant and equipment (24,934) (8.8) (24,934) (2.3) (1,977) (0.7) - - (1,977) (0.2) ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Total operating expenses 170,443 60.3 694,600 62.8 172,652 58.8 178,029 58.4 674,786 58.6 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Income (loss) from operations (18,680) (6.6) (27,822) (2.5) 14,462 4.9 22,612 7.4 70,612 6.1 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Other income (expense) Investment income (5,016) (1.8) (21,702) (2.0) 2,464 0.8 7,574 2.5 14,463 1.3 Other, net (66) (0.0) (5,486) (0.5) (2,089) (0.7) (1,392) (0.5) (8,871) (0.8) ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Other income (expense), net (5,082) (1.8) (27,188) (2.5) 375 0.1 6,182 2.0 5,592 0.5 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Income (loss) before taxes (23,762) (8.4) (55,010) (5.0) 14,837 5.1 28,794 9.5 76,204 6.6 Income tax expense (benefit) (11,362) (4.0) 106,894 9.7 4,454 1.5 5,389 1.8 141,285 12.3 ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Net income (loss) (12,400) (4.4) (161,904) (14.6) 10,383 3.5 23,405 7.7 (65,081) (5.6) Beneficial conversion feature - - - - (25,680) (8.7) - - (25,680) (2.2) Preferred stock dividends - - - - (102) (0.0) (189) (0.1) (291) (0.0) ---------- ------- ---------- ------- ----------- ------- -------- ------- ---------- ------ Net income (loss) available to common stockholders $ (12,400) (4.4) $ (161,904) (14.6) $ (15,399) (5.2) $ 23,216 7.6 $ (91,052) (7.9) ========== ======= ========== ======= =========== ======= ======== ======= ========== ====== Net income (loss) per common share: Basic $ (0.03) $ (0.44) $ (0.04) $ 0.06 $ (0.24) Diluted $ (0.03) $ (0.44) $ (0.04) $ 0.06 $ (0.24) ========== ========== =========== ======== ========== Weighted average shares: Basic 371,484 370,545 384,528 383,400 380,478 Diluted 371,484 370,545 384,528 397,776 387,073 Certain reclassifications, none of which affected net income, were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Unaudited Trended Revenue by Solution, Business Category and Segment (In thousands) Fiscal Year Trailing Four Revenue by solution Q3 2003 % 2003 % Q2 2004 % Q3 2004 % Quarters % ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ IT software and solutions Identity management & web services $ 26,099 9.2 $ 96,977 8.8 $ 24,051 8.2 $ 26,720 8.8 $ 98,866 8.6 Cross platform services Management & collaboration 63,178 22.3 243,071 22.0 61,046 20.8 61,317 20.1 247,423 21.5 Services platforms & storage 81,417 28.8 326,788 29.6 90,214 30.7 97,860 32.1 346,392 30.1 ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ Total cross platform services 144,595 51.1 569,859 51.5 151,260 51.5 159,177 52.3 593,815 51.5 ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ Total software licenses & maintenance 170,694 60.4 666,836 60.3 175,311 59.7 185,897 61.0 692,681 60.1 Worldwide services * 75,576 26.7 299,331 27.1 76,452 26.0 74,944 24.6 299,085 26.0 ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ Total IT software and solutions 246,270 87.1 966,167 87.4 251,763 85.8 260,841 85.6 991,766 86.1 Celerant management consulting 36,539 12.9 139,329 12.6 41,793 14.2 43,756 14.4 160,243 13.9 ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ Total net revenue $ 282,809 100.0 $ 1,105,496 100.0 $ 293,556 100.0 $ 304,597 100.0 $1,152,009 100.0 ========== ======= =========== ======= =========== ====== ============ ====== ============ ====== * includes consulting, technical services, and training Revenue by business category New software licenses $ 69,255 24.5 $ 265,256 24.0 $ 60,306 20.5 $ 58,693 19.3 $ 244,266 21.2 Maintenance and services 213,554 75.5 840,240 76.0 233,250 79.5 245,904 80.7 907,743 78.8 ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ Total net revenue $ 282,809 100.0 $ 1,105,496 100.0 $ 293,556 100.0 $ 304,597 100.0 $1,152,009 100.0 ========== ======= =========== ======= =========== ====== ============ ====== ============ ====== Revenue by segment North America $ 129,188 45.7 $ 508,360 46.0 $ 124,816 42.5 $ 141,078 46.3 $ 510,722 44.3 Latin America 6,447 2.3 23,202 2.1 5,363 1.8 4,539 1.5 21,206 1.8 ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ Americas 135,635 48.0 531,562 48.1 130,179 44.3 145,617 47.8 531,928 46.2 EMEA 87,400 30.9 348,105 31.5 99,016 33.7 92,209 30.3 369,380 32.1 Asia Pacific 23,235 8.2 86,500 7.8 22,569 7.7 23,015 7.6 90,459 7.9 Celerant management consulting 36,539 12.9 139,329 12.6 41,793 14.2 43,756 14.4 160,243 13.9 ---------- ------- ----------- ------- ----------- ------ ------------ ------ ------------ ------ Total net revenue $ 282,809 100.0 $ 1,105,496 100.0 $ 293,556 100.0 $ 304,597 100.0 $1,152,009 100.0 ========== ======= =========== ======= =========== ====== ============ ====== ============ ====== Certain reclassifications were made to the prior period amounts in order to conform to the current period's presentation. * $13.5 million Q3 2004 payment from The Canopy Group, Inc. is recorded in Services, Platforms and Storage as maintenance and services revenue in North America. ** $12 million Q3 2004 SUSE revenue is recorded in Services, Platforms and Storage as maintenance and services revenue.
Novell, Inc. Unaudited Trended Solutions Revenue by New Software Licenses and Maintenance and Services (In thousands) Fiscal Year Trailing Four Q3 2003 % 2003 % Q2 2004 % Q3 2004 % Quarters % ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- IT software and solutions Identity management & web services New software licenses $ 12,985 4.6 $ 46,597 4.2 $ 9,087 3.1 $ 11,369 3.7 $ 41,294 3.6 Maintenance and services 13,114 4.6 50,380 4.6 14,964 5.1 15,351 5.0 57,572 5.0 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- 26,099 9.2 96,977 8.8 24,051 8.2 26,720 8.8 98,866 8.6 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Cross platform services Management & collaboration New software licenses 25,192 8.9 93,320 8.4 20,424 7.0 20,512 6.7 87,267 7.6 Maintenance and services 37,986 13.4 149,751 13.5 40,622 13.8 40,805 13.4 160,156 13.9 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- 63,178 22.3 243,071 22.0 61,046 20.8 61,317 20.1 247,423 21.5 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Services platforms & storage New software licenses 31,078 11.0 125,339 11.3 30,795 10.5 26,812 8.8 115,705 10.0 Maintenance and services 50,339 17.8 201,449 18.2 59,419 20.2 71,048 23.3 230,687 20.0 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- 81,417 28.8 326,788 29.6 90,214 30.7 97,860 32.1 346,392 30.1 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Total cross platform services New software licenses 56,270 19.9 218,659 19.8 51,219 17.4 47,324 15.5 202,972 17.6 Maintenance and services 88,325 31.2 351,200 31.8 100,041 34.1 111,853 36.7 390,843 33.9 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- 144,595 51.1 569,859 51.5 151,260 51.5 159,177 52.3 593,815 51.5 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Total software licenses & maintenance New software licenses 69,255 24.5 265,256 24.0 60,306 20.5 58,693 19.3 244,266 21.2 Maintenance and services 101,439 35.9 401,580 36.3 115,005 39.2 127,204 41.8 448,415 38.9 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- 170,694 60.4 666,836 60.3 175,311 59.7 185,897 61.0 692,681 60.1 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Worldwide services 75,576 26.7 299,331 27.1 76,452 26.0 74,944 24.6 299,085 26.0 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Total IT software and solutions New software licenses 69,255 24.5 265,256 24.0 60,306 20.5 58,693 19.3 244,266 21.2 Maintenance and services 177,015 62.6 700,911 63.4 191,457 65.2 202,148 66.4 747,500 64.9 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- 246,270 87.1 966,167 87.4 251,763 85.8 260,841 85.6 991,766 86.1 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Celerant management consulting 36,539 12.9 139,329 12.6 41,793 14.2 43,756 14.4 160,243 13.9 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Total net revenue New software licenses 69,255 24.5 265,256 24.0 60,306 20.5 58,693 19.3 244,266 21.2 Maintenance and services 213,554 75.5 840,240 76.0 233,250 79.5 245,904 80.7 907,743 78.8 ------------------- ----------- ------- ------------ ------- ------------ ------ ------------- ------- Total net revenue $ 282,809 100.0 $ 1,105,496 100.0 $ 293,556 100.0 $ 304,597 100.0 $1,152,009 100.0 =================== =========== ======= ============ ======= ============ ====== ============= ======= Certain reclassifications were made to the prior period amounts in order to conform to the current period's presentation.