Exhibit 99.1
FOR IMMEDIATE RELEASE
November 18, 2004
Novell Reports Financial Results for Fourth Fiscal Quarter and Full Fiscal Year 2004
• 5% increase in revenue from year ago period
• Strong cash flow performance
• Exceptional growth in SUSE LINUX Enterprise Server business
WALTHAM, Mass. – November 18, 2004 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its fourth fiscal quarter ended October 31, 2004. For the quarter, Novell reported revenues of $301 million, compared to revenues of $287 million for the fourth fiscal quarter 2003. Net income available to common stockholders in the fourth fiscal quarter 2004 was $13 million, or $0.03 per diluted common share. This compared to a net loss available to common stockholders of $109 million, or $0.29 loss per common share, for the fourth fiscal quarter 2003.
On a non-GAAP basis, adjusted net income available to common stockholders for the fourth fiscal quarter 2004 was $23 million, or $0.06 per diluted common share, which excludes the effect of restructuring charges of $9 million and net investment impairments of $1 million. This compares to non-GAAP adjusted net income available to common stockholders for the fourth fiscal quarter 2003 of $19 million, or $0.05 per diluted common share, which excludes the effect of restructuring charges of $8 million, an in-process research and development charge of $1 million, investment impairments of $2 million and a $119 million charge to increase a valuation allowance for net deferred tax assets. 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 fourth fiscal quarter 2004, foreign currency exchange rates favorably impacted total revenue by approximately $7 million year-over-year. Foreign currency impact to net income was not material. Accrual adjustments in the fourth fiscal quarter 2004 favorably impacted operating income by $10 million. The accruals were originally created for legal, medical and other potential liabilities. Also, reserve adjustments affecting tax expense favorably impacted net income by $6 million.
During the fourth fiscal quarter 2004, Novell recognized revenue of $12 million associated with its SUSE® LINUX business. Recognized revenue from subscriptions to SUSE LINUX Enterprise Server in the quarter was $7 million, a sequential increase of 68% from the third fiscal quarter 2004. Sales of subscriptions to SUSE LINUX Enterprise Server (SLES) totaled 21,000 units in the quarter. Not included in this number is the effect of three Linux-related enterprise-wide licensing deals with Fortune 100* customers. Under these multi-year agreements, these customers can deploy SLES throughout the enterprise, and the agreements were priced accordingly. We estimate that in the near term these customers may deploy in the range of 4,000 to 6,000 servers and that there is the potential for them to deploy over 25,000 servers over time.
For Novell's full fiscal year 2004, Novell reported revenue of $1.166 billion and net income available to common stockholders of $31 million, or $0.08 per diluted common share. Comparatively, revenue for the full year fiscal 2003 was $1.105 billion and net loss available to common stockholders was $162 million, or $0.44 loss per common share.
“We are pleased that our revenue and net income remain strong during our ongoing transition to a growth company against the backdrop of a challenging IT market,” said Jack Messman, Chairman and CEO of Novell. “ Our key growth initiatives of Linux and Identity Management continued their strong performance. In particular, our Linux solutions are allowing us to reach more and more new customers at a pace not seen at Novell for many years. We see no slowdown to the tremendous progress made by Linux technology to date. However, we still have challenges ahead. While we had a strong finish in closing fiscal year 2004, fiscal year 2005 will be another rebuilding year for Novell as we make significant investments in our solutions, systems and people to try to grow our newer businesses in order to counterbalance the continued decline in our NetWare business. ”
On the balance sheet, cash and short-term investments were $1.2 billion at October 31, 2004, compared with $1.1 billion at July 31, 2004. Days sales outstanding (DSO) in accounts receivable was 78 days at the end of the fourth fiscal quarter 2004, up from 74 days in the year ago quarter. Deferred revenues were $374 million at the end of the fourth fiscal quarter 2004, up $52 million or 16% year over year. Cash flow from operations was $52 million for the fourth fiscal quarter 2004, down $1 million from a year ago.
On November 8, 2004, Novell announced an agreement with Microsoft to settle potential antitrust litigation related to Novell's NetWare® operating system in exchange for $536 million in cash, which was received today. After estimated transaction costs and income tax payments, the net cash increase is expected to approximate $438 million. A gain of $448 million, the settlement less estimated transaction costs, will be included in operating income in the first fiscal quarter ended January 31, 2005. Book income tax expense related to this settlement is currently estimated at approximately $80 million, which reflects the use of a portion of net operating loss carryforwards, and will be recorded in the same period. The difference between the book tax expense and the estimated $10 million taxes to be paid results from the nature of the carryforwards used.
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 November 18, 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, December 2. The domestic toll-free replay number is 888-567-0447, and the international replay number is +1-402-998-1802.
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.
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Novell NetWare, Nsure and Ximian are registered trademarks; exteNd 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 business. *All third-party trademarks are the property of their respective owners.
Press Contact:
Bruce Lowry
Novell, Inc.
Phone: 415-383-8408
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 Ended ----------------------------------------------------- ------------------------------------------------------- Oct 31, 2004 Oct 31, 2003 Oct 31, 2004 Oct 31, 2003 ----------------------- ----------------------- ----------------------- ------------------------ Net revenue New software licenses $ 64,651 $ 70,498 $ 238,419 $ 265,256 Maintenance and services 236,006 216,251 927,498 840,240 ----------------------- ----------------------- ----------------------- ------------------------ Total net revenue 300,657 286,749 1,165,917 1,105,496 ----------------------- ----------------------- ----------------------- ------------------------ Cost of revenue New software licenses 6,859 5,140 23,481 22,210 Maintenance and services 103,546 96,197 392,198 392,939 Intangible asset impairments - - - 23,569 ----------------------- ----------------------- ----------------------- ------------------------ Total cost of revenue 110,405 101,337 415,679 438,718 ----------------------- ----------------------- ----------------------- ------------------------ Gross profit 190,252 185,412 750,238 666,778 ----------------------- ----------------------- ----------------------- ------------------------ Operating expenses Sales and marketing 96,156 88,314 362,569 380,826 Product development 47,332 44,304 198,614 183,758 General and administrative 23,236 24,300 102,437 110,963 Restructuring 8,916 8,042 22,903 43,067 Purchased in-process R&D - 920 - 920 Gain on sale of property, plant and equipment - - (1,977) (24,934) ----------------------- ----------------------- ----------------------- ------------------------ Total operating expenses 175,640 165,880 684,546 694,600 ----------------------- ----------------------- ----------------------- ------------------------ Income (loss) from operations 14,612 19,532 65,692 (27,822) Other income (expense), net 248 (3,442) 9,282 (27,188) ----------------------- ----------------------- ----------------------- ------------------------ Income (loss) before taxes 14,860 16,090 74,974 (55,010) Income tax expense 1,595 125,094 17,786 106,894 ----------------------- ----------------------- ----------------------- ------------------------ Net income (loss) 13,265 (109,004) 57,188 (161,904) Deemed dividend related to beneficial conversion feature of preferred stock - - (25,680) - Preferred stock dividends (125) - (416) - ----------------------- ----------------------- ----------------------- ------------------------ Net income (loss) available to common stockholders $ 13,140 $ (109,004) $ 31,092 $ (161,904) ======================= ======================= ======================= ======================== Net income (loss) per common share: Basic $ 0.03 $ (0.29) $ 0.08 $ (0.44) Diluted $ 0.03 $ (0.29) $ 0.08 $ (0.44) bb Weighted average shares: Basic 376,367 373,876 381,100 370,545 Diluted 386,243 373,876 394,268 370,545 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 Oct 31, 2004 Oct 31, 2003 --------------------- --------------------- Current assets Cash, cash equivalents and short-term investments $1,211,467 $ 751,852 Receivables, net 269,431 232,492 Prepaid expenses 25,190 23,005 Other current assets 28,846 23,204 --------------------- --------------------- Total current assets 1,534,934 1,030,553 Property, plant and equipment, net 231,468 255,526 Long-term investments 55,986 50,948 Goodwill 391,088 213,300 Intangible assets, net 48,616 10,800 Other assets 29,456 6,526 --------------------- --------------------- Total assets $2,291,548 $1,567,653 ===================== ===================== LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 55,956 $ 50,258 Accrued compensation 126,612 101,164 Other accrued liabilities 98,983 117,073 Income taxes payable 37,077 35,493 Deferred revenue 374,186 322,470 --------------------- --------------------- Total current liabilities 692,814 626,458 Deferred income taxes 3,855 - Long-term debt 600,000 - --------------------- --------------------- Total liabilities 1,296,669 626,458 Minority interests 6,515 6,725 Preferred stock 25,000 - Stockholders' equity 963,364 934,470 --------------------- --------------------- Total liabilities and stockholders' equity $2,291,548 $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 Ended ------------------------------------------------ ------------------------------------------------- Oct 31, 2004 Oct 31, 2003 Oct 31, 2004 Oct 31, 2003 --------------------- ---------------------- ---------------------- ---------------------- Cash flows from operating activities: Net income (loss) $ 13,265 $ (109,004) $ 57,188 $ (161,904) Adjustments to reconcile net income (loss) to net cash provided by operating activities: (Gain) loss on sale of property, plant and equipment 328 - (1,639) (25,299) Gain on sale of long-term investments (1,567) - (1,567) - Depreciation and amortization 14,536 11,884 53,482 61,058 Non-cash restructuring charges 7,788 8,042 16,979 31,268 Intangible asset impairments, net of tax - - - 13,935 Long-term investment impairments 2,967 2,172 5,415 34,735 In-process R&D expense - 920 - 920 Changes in assets and liabilities 14,186 138,982 (10,761) 100,293 --------------------- ---------------------- ---------------------- ---------------------- Net cash provided by operating activities 51,503 52,996 119,097 55,006 --------------------- ---------------------- ---------------------- ---------------------- Cash flows from financing activities: Issuance of common stock, net 10,178 12,276 58,162 20,081 Issuance of preferred stock - - 50,000 - Issuance of long-term debt - - 600,000 - Payment of issuance costs on long-term debt - - (14,850) - Payment of preferred stock dividend - - (292) - Repurchase of common stock - held in treasury - - (125,000) - --------------------- ---------------------- ---------------------- ---------------------- Net cash provided by financing activities 10,178 12,276 568,020 20,081 --------------------- ---------------------- ---------------------- ---------------------- Cash flows from investing activities: Expenditures for property, plant and equipment (7,473) (8,863) (26,997) (39,468) Proceeds from the sale of property, plant and equipment 2,811 - 4,951 125,000 Proceeds from the sale of long-term investments 1,567 - 1,567 - Short-term investment activity (199,667) (96,630) (393,181) (213,870) Cash paid for Ximian - (40,205) - (40,205) Cash paid for SUSE LINUX - - (211,468) - Cash received from SUSE LINUX - - 11,170 - Cash paid for Salmon - - (8,470) - Cash received from Salmon - - 3,148 - Other 2,161 (3,319) (51) (3,599) --------------------- ---------------------- ---------------------- ---------------------- Net cash used by investing activities (200,601) (149,017) (619,331) (172,142) --------------------- ---------------------- ---------------------- ---------------------- Increase (decrease) in cash and cash equivalents (138,920) (83,745) 67,786 (97,055) Cash and cash equivalents - beginning of period 573,638 450,677 366,932 463,987 --------------------- ---------------------- ---------------------- ---------------------- Cash and cash equivalents - end of period 434,718 366,932 434,718 366,932 Short-term investments - end of period 776,749 384,920 776,749 384,920 --------------------- ---------------------- ---------------------- ---------------------- Cash and short-term investments - end of period $1,211,467 $ 751,852 $1,211,467 $ 751,852 ===================== ====================== ====================== ====================== 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 year ended October 31, 2004 Net revenue $ 1,165,917 $ (13,500) (a) $ 1,152,417 Gross profit 750,238 (13,500) (a) 736,738 Income (loss) from operations 65,692 7,775 (b) 73,467 Income (loss) before taxes 74,974 6,580 (c) 81,554 Net income (loss) 57,188 5,417 (d) 62,605 Net income (loss) available to common stockholders 31,092 31,097 (e) 62,189 Diluted net income (loss) per common share $ 0.08 $0.08 (e) $ 0.16 Fiscal quarter ended October 31, 2004 Net revenue $ 300,657 $ - $ 300,657 Gross profit 190,252 - 190,252 Income (loss) from operations 14,612 8,916 (f) 23,528 Income (loss) before taxes 14,860 10,317 (g) 25,177 Net income (loss) 13,265 10,317 (h) 23,582 Net income (loss) available to common stockholders 13,140 10,317 (h) 23,457 Diluted net income (loss) per common share $ 0.03 $ 0.03 (h) $ 0.06 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) (i) 18,542 Income (loss) before taxes 28,794 (8,561) (j) 20,233 Net income (loss) 23,405 (9,453) (k) 13,952 Net income (loss) available to common stockholders 23,216 (9,453) (k) 13,763 Diluted net income (loss) per common share $ 0.06 $ (0.02) (k) $ 0.04 Fiscal quarter ended October 31, 2003 Net revenue $ 286,749 $ - $ 286,749 Gross profit 185,412 - 185,412 Income (loss) from operations 19,532 8,962 (l) 28,494 Income (loss) before taxes 16,090 11,134 (m) 27,224 Net income (loss) (109,004) 128,062 (n) 19,058 Net income (loss) available to common stockholders (109,004) 128,062 (n) 19,058 Diluted net income (loss) per common share $ (0.29) $ 0.34 (n) $ 0.05 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 $23 million, a gain on the sale of property, plant and equipment of $2 million and integration costs related to SUSE of $0.4 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 net long-term investment impairments of $4 million. (d) Reflects the items in footnotes (a), (b) and (c) and the necessary related tax adjustments. (e) Reflects the items in footnotes (a), (b), (c) and (d) and a beneficial conversion feature of $25.7 million. (f) Reflects restructuring reserves of $8.9 million. (g) Reflects the item in footnote (f) and net long-term investment impairments of $1.4 million. (h) Reflects the items in footnotes (f) and (g) for which there were no tax adjustments. (i) Reflects the item in footnote (a), restructuring charges of $9.3 million and integration costs related to SUSE of $0.2 million. (j) Reflects the items in footnotes (h) and (i), satisfaction of judgment against The Canopy Group, Inc. recorded as interest income of $5 million and long-term investment impairments of $0.6 million. (k) Reflects the items in footnotes (a), (i) and (j) and the necessary related tax adjustments. (l) Reflects restructuring reserves of $8.0 million and in-process R&D expense of $0.9 million. (m) Reflects the items in footnote (l) and investment impairments of $2.2 million. (n) Reflects the items in footnotes (l) and (m), the necessary related tax adjustments and a write down of deferred tax assets of $119 million. 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 Fiscal Year Q4 2003 % 2003 % Q3 2004 % Q4 2004 % 2004 % -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Net revenue New software licenses $ 70,498 24.6 $ 265,256 24.0 $ 58,693 19.3 $ 64,651 21.5 $ 238,419 20.4 Maintenance and services 216,251 75.4 840,240 76.0 245,904 80.7 236,006 78.5 927,498 79.6 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Total net revenue 286,749 100.0 1,105,496 100.0 304,597 100.0 300,657 100.0 1,165,917 100.0 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Cost of revenue New software licenses 5,140 1.8 22,210 2.0 5,613 1.8 6,859 2.3 23,481 2.0 Maintenance and services 96,197 33.5 392,939 35.5 98,343 32.3 103,546 34.4 392,198 33.6 Intangible asset impairments - - 23,569 2.1 - - - - - - -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Total cost of revenue 101,337 35.3 438,718 39.7 103,956 34.1 110,405 36.7 415,679 35.7 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Gross profit 185,412 64.7 666,778 60.3 200,641 65.9 190,252 63.3 750,238 64.3 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Operating expenses Sales and marketing 88,314 30.8 380,826 34.4 90,998 29.9 96,156 32.0 362,569 31.1 Product development 44,304 15.5 183,758 16.6 49,052 16.1 47,332 15.7 198,614 17.0 General and administrative 24,300 8.5 110,963 10.0 28,729 9.4 23,236 7.7 102,437 8.8 Restructuring 8,042 2.8 43,067 3.9 9,250 3.0 8,916 3.0 22,903 2.0 Purchased in-process R&D 920 0.3 920 0.1 - - - - - - Gain on sale of property, plant and equipment - - (24,934) (2.3) - - - - (1,977) (0.2) -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Total operating expenses 165,880 57.8 694,600 62.8 178,029 58.4 175,640 58.4 684,546 58.7 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Income (loss) from operations 19,532 6.8 (27,822) (2.5) 22,612 7.4 14,612 4.9 65,692 5.6 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Other income (expense) Investment income 913 0.3 (21,702) (2.0) 7,574 2.5 4,436 1.5 17,986 1.5 Other, net (4,355) (1.5) (5,486) (0.5) (1,392) (0.5) (4,188) (1.4) (8,704) (0.7) -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Other income (expense), net (3,442) (1.2) (27,188) (2.5) 6,182 2.0 248 0.1 9,282 0.8 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Income (loss) before taxes 16,090 5.6 (55,010) (5.0) 28,794 9.5 14,860 4.9 74,974 6.4 Income tax expense 125,094 43.6 106,894 9.7 5,389 1.8 1,595 0.5 17,786 1.5 -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Net income (loss) (109,004) (38.0) (161,904) (14.6) 23,405 7.7 13,265 4.4 57,188 4.9 Beneficial conversion feature - - - - - - - - (25,680) (2.2) Preferred stock dividends - - - - (189) (0.1) (125) (0.0) (416) (0.0) -------------- ---------- ------------- --------- ------------ ---------- ----------- ---------- --------------- -------- Net income (loss) available to common stockholders $ (109,004) (38.0) $(161,904) (14.6) $ 23,216 7.6 $ 13,140 4.4 $ 31,092 2.7 ============== ========== ============= ========= ============ ========== =========== ========== =============== ======== Net income (loss) per common share: Basic $ (0.29) $ (0.44) $ 0.06 $ 0.03 $ 0.08 Diluted $ (0.29) $ (0.44) $ 0.06 $ 0.03 $ 0.08 ============== ============= ============ =========== =============== Weighted average shares: Basic 373,876 370,545 383,400 376,367 381,100 Diluted 373,876 370,545 397,776 386,243 394,268 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 Fiscal Year Revenue by solution Q4 2003 % 2003 % Q3 2004 % Q4 2004 % 2004 % ---------------- --------- ---------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ---------- IT software and solutions Identity management & web services $ 25,623 8.9 $ 96,977 8.8 $ 26,720 8.8 $ 28,288 9.4 $ 101,531 8.7 Cross platform services Management & collaboration 64,148 22.4 243,071 22.0 61,317 20.1 65,129 21.7 248,404 21.3 Services platforms & storage 82,691 28.8 326,788 29.6 97,860 32.1 85,370 28.4 349,071 29.9 ---------------- --------- ---------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ---------- Total cross platform services 146,839 51.2 569,859 51.5 159,177 52.3 150,499 50.1 597,475 51.2 ---------------- --------- ---------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ---------- Total software licenses & maintenance 172,462 60.1 666,836 60.3 185,897 61.0 178,787 59.5 699,006 60.0 Worldwide services 76,926 26.8 299,331 27.1 74,944 24.6 82,689 27.5 304,848 26.1 ---------------- --------- ---------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ---------- Total IT software and solutions 249,388 87.0 966,167 87.4 260,841 85.6 261,476 87.0 1,003,854 86.1 Celerant consulting 37,361 13.0 139,329 12.6 43,756 14.4 39,181 13.0 162,063 13.9 ---------------- --------- ---------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ---------- Total net revenue $ 286,749 100.0 $1,105,496 100.0 $ 304,597 100.0 $ 300,657 100.0 $ 1,165,917 100.0 ================ ========= ================ ========== ================= ========== ================= ========= ================= ========== Revenue by business category New software licenses $ 70,498 24.6 $ 265,256 24.0 $ 58,693 19.3 $ 64,651 21.5 $ 238,419 20.4 Maintenance and services 216,251 75.4 840,240 76.0 245,904 80.7 236,006 78.5 927,498 79.6 ---------------- --------- ---------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ---------- Total net revenue $ 286,749 100.0 $1,105,496 100.0 $ 304,597 100.0 $ 300,657 100.0 $ 1,165,917 100.0 ================ ========= ================ ========== ================= ========== ================= ========= ================= ========== Revenue by segment North America $ 129,068 45.0 $ 508,360 46.0 $ 141,078 46.3 $ 132,824 44.2 $ 514,477 44.1 EMEA 90,304 31.5 348,105 31.5 92,209 30.3 99,197 33.0 378,273 32.4 Asia Pacific 17,463 6.1 60,140 5.4 16,082 5.3 15,482 5.1 61,774 5.3 Latin America 5,516 1.9 23,202 2.1 4,539 1.5 5,336 1.8 21,026 1.8 Japan 7,037 2.5 26,360 2.4 6,933 2.3 8,637 2.9 28,304 2.4 Celerant consulting 37,361 13.0 139,329 12.6 43,756 14.4 39,181 13.0 162,063 13.9 ---------------- --------- ---------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ---------- Total net revenue $ 286,749 100.0 $1,105,496 100.0 $ 304,597 100.0 $ 300,657 100.0 $ 1,165,917 100.0 ================ ========= ================ ========== ================= ========== ================= ========= ================= ========== 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.
Novell, Inc. Unaudited Trended Solutions Revenue by New Software Licenses and Maintenance and Services (In thousands) Fiscal Year Fiscal Year Q4 2003 % 2003 % Q3 2004 % Q4 2004 % 2004 % ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- IT software and solutions Identity management & web services New software licenses $ 12,764 4.5 $ 46,597 4.2 $ 11,369 3.7 $ 12,016 4.0 $ 40,546 3.5 Maintenance and services 12,859 4.5 50,380 4.6 15,351 5.0 16,272 5.4 60,985 5.2 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- 25,623 8.9 96,977 8.8 26,720 8.8 28,288 9.4 101,531 8.7 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Cross platform services Management & collaboration New software licenses 25,934 9.0 93,320 8.4 20,512 6.7 24,436 8.1 85,769 7.4 Maintenance and services 38,214 13.3 149,751 13.5 40,805 13.4 40,693 13.5 162,635 13.9 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- 64,148 22.4 243,071 22.0 61,317 20.1 65,129 21.7 248,404 21.3 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Services platforms & storage New software licenses 31,800 11.1 125,339 11.3 26,812 8.8 28,199 9.4 112,104 9.6 Maintenance and services 50,891 17.7 201,449 18.2 71,048 23.3 57,171 19.0 236,967 20.3 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- 82,691 28.8 326,788 29.6 97,860 32.1 85,370 28.4 349,071 29.9 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Total cross platform services New software licenses 57,734 20.1 218,659 19.8 47,324 15.5 52,635 17.5 197,873 17.0 Maintenance and services 89,105 31.1 351,200 31.8 111,853 36.7 97,864 32.6 399,602 34.3 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- 146,839 51.2 569,859 51.5 159,177 52.3 150,499 50.1 597,475 51.2 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Total software licenses & maintenance New software licenses 70,498 24.6 265,256 24.0 58,693 19.3 64,651 21.5 238,419 20.4 Maintenance and services 101,964 35.6 401,580 36.3 127,204 41.8 114,136 38.0 460,587 39.5 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- 172,462 60.1 666,836 60.3 185,897 61.0 178,787 59.5 699,006 60.0 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Worldwide services 76,926 26.8 299,331 27.1 74,944 24.6 82,689 27.5 304,848 26.1 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Total IT software and solutions New software licenses 70,498 24.6 265,256 24.0 58,693 19.3 64,651 21.5 238,419 20.4 Maintenance and services 178,890 62.4 700,911 63.4 202,148 66.4 196,825 65.5 765,435 65.7 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- 249,388 87.0 966,167 87.4 260,841 85.6 261,476 87.0 1,003,854 86.1 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Celerant consulting 37,361 13.0 139,329 12.6 43,756 14.4 39,181 13.0 162,063 13.9 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Total net revenue New software licenses 70,498 24.6 265,256 24.0 58,693 19.3 64,651 21.5 238,419 20.4 Maintenance and services 216,251 75.4 840,240 76.0 245,904 80.7 236,006 78.5 927,498 79.6 ---------------- ---------- ---------------- --------- ----------------- --------- ----------------- ---------- ------------------ ---------- Total net revenue $ 286,749 100.0 $1,105,496 100.0 $ 304,597 100.0 $ 300,657 100.0 $ 1,165,917 100.0 ================ ========== ================ ========= ================= ========= ================= ========== ================== ========== Certain reclassifications were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Major IT Software and Solutions Included Within Reported Line Items Identity management & web services > BorderManager > eDirectory > exteNd > iChain > Identity Manager (DirXML) > SecureLogin Cross platform services Management & collaboration > GroupWise > NetMail > ZENworks (including Ximian Red Carpet) Services platforms & storage > Cluster Services > NetWare > Small Business Suite > SUSE LINUX Enterprise Server > SUSE LINUX Professional Worldwide services > IT Consulting Services > Technical Support Services > Training Services