Exhibit 99.1
FOR IMMEDIATE RELEASE
May 25, 2005
Novell Reports Financial Results for Second Fiscal Quarter 2005
WALTHAM, Mass. – May 25, 2005 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its second fiscal quarter ended April 30, 2005. For the quarter, Novell reported revenues of $297 million, compared to revenues of $294 million for the second fiscal quarter 2004. Net loss available to common stockholders in the second fiscal quarter 2005 was $16 million, or a $0.04 loss per diluted common share. This compared to a net loss available to common stockholders of $15 million, or a $0.04 loss per diluted common share, for the second fiscal quarter 2004.
On a non-GAAP basis, adjusted net income available to common stockholders for the second fiscal quarter 2005 was $1 million, or $0.00 per diluted common share, which excludes $6 million of restructuring and acquired in-process research and development expenses, $1 million of long-term investment impairments and a net $11 million for income taxes related to non-GAAP adjustments. This compares to non-GAAP adjusted net income available to common stockholders for the second fiscal quarter 2004 of $14 million, or $0.03 per diluted common share, which excludes the effect of a preferred stock deemed dividend of $26 million, restructuring expenses of $5 million, investment impairments of $1 million and a $2 million gain on a sale of property, plant and equipment. 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 second fiscal quarter 2005, foreign currency exchange rates favorably impacted total revenue by approximately $8 million year-over-year. Foreign currency exchange rates favorably impacted net income by $2 million year-over-year.
During the second fiscal quarter 2005, Novell recognized revenue of $8 million from subscriptions to SUSE™ LINUX Enterprise Server (SLES). Sales of subscriptions to SUSE LINUX Enterprise Server totaled 19,000 units in the quarter.
“Our results this quarter reflect the significant investments we are making to reposition Novell,” said Jack Messman, Chairman and CEO of Novell. “I am confident that these investments will lead to increased customer acceptance of our solid solution offerings in the Linux and Identity Driven computing segments.”
On the balance sheet, cash and short-term investments were $1.6 billion at April 30, 2005, compared with $1.7 billion at January 31, 2005. Days sales outstanding (DSO) in accounts receivable was 59 days at the end of the second fiscal quarter 2005, down from 67 days in the year ago quarter. Deferred revenue was $321 million at the end of the second fiscal quarter 2005, up $25 million or 8% year over year. Cash flow from operations was a negative $25 million for the second fiscal quarter 2005, up from a negative $28 million 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 ET May 25, 2005, 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, June 7. The domestic toll-free replay number is 866-469-7805, and the international replay number is +1-203-369-1473.
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 and identity management 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 and identity management strategies, Novell’s ability to take a competitive position in the Linux and identity management industries, 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission on January 13, 2005. 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. (Nasdaq: NOVL) is a leading provider of infrastructure software and services to over 50,000 customers in 43 countries. With more than 20 years of experience in data center, workgroup and desktop solutions, Novell's 6,000 employees, 5,000 partners and support centers around the world are meeting customer requirements for identity-driven computing and Linux solutions. By providing enterprise-class software and support for commercial and open source software, Novell delivers increased operating flexibility and choice at a lower total cost of ownership. More information about Novell can be found athttp://www.novell.com.
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Novell is a registered trademark of Novell, Inc. in the United States and other countries. SUSE is a trademark of SUSE LINUX Products GmbH, a Novell business. * Linux is a registered trademark of Linus Torvalds. All other 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-to-Date --------------------------------- --------------------------------- Apr 30, 2005 Apr 30, 2004 Apr 30, 2005 Apr 30, 2004 -------------- -------------- -------------- -------------- Net revenue New software licenses $ 45,768 $ 60,250 $ 90,064 $ 115,019 Maintenance and services 251,283 233,306 497,115 445,644 -------------- -------------- -------------- -------------- Total net revenue 297,051 293,556 587,179 560,663 -------------- -------------- -------------- -------------- Cost of revenue New software licenses 4,863 6,087 9,495 11,008 Maintenance and services 112,478 100,355 219,897 190,310 -------------- -------------- -------------- -------------- Total cost of revenue 117,341 106,442 229,392 201,318 -------------- -------------- -------------- -------------- Gross profit 179,710 187,114 357,787 359,345 -------------- -------------- -------------- -------------- Operating (income) expenses Sales and marketing 98,479 93,646 192,488 175,415 Product development 51,652 52,031 100,645 102,230 General and administrative 30,140 24,215 58,380 50,472 Restructuring expenses 5,361 4,737 11,780 4,737 Acquired in-process research and development 480 - 480 - Gain on sale of property, plant and equipment - (1,977) (1,589) (1,977) Gain on settlement of potential litigation - - (447,560) - -------------- -------------- -------------- -------------- Total operating (income) expenses 186,112 172,652 (85,376) 330,877 -------------- -------------- -------------- -------------- Income (loss) from operations (6,402) 14,462 443,163 28,468 Other income (expense), net 7,455 375 12,490 2,852 -------------- -------------- -------------- -------------- Income before income taxes 1,053 14,837 455,653 31,320 Income tax expense 16,680 4,454 76,119 10,802 -------------- -------------- -------------- -------------- Net income (loss) $ (15,627) $ 10,383 $ 379,534 $ 20,518 ============== ============== ============== ============== Deemed dividend related to beneficial conversion feature of preferred stock - (25,680) - (25,680) Preferred stock dividends (125) (102) (250) (102) Allocation of earnings to preferred stockholders - - (3,974) - -------------- -------------- -------------- -------------- Net income (loss) available to common stockholders - basic $ (15,752) $ (15,399) $ 375,310 $ (5,264) ============== ============== ============== ============== Net income (loss) available to common stockholders - diluted $ (15,752) $ (15,399) $ 378,296 $ (5,264) ============== ============== ============== ============== Net income (loss) per common share: Basic $ (0.04) $ (0.04) $ 0.99 $ (0.01) Diluted $ (0.04) $ (0.04) $ 0.87 $ (0.01) Weighted average shares: Basic 378,219 384,528 377,738 381,547 Diluted 378,219 384,528 434,962 * 381,547 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. * Year-to-date fiscal 2005 diluted weighted average shares includes 52 million potential common shares related to convertible debt which are not included in the current quarter calculation because they are anti-dilutive.
Novell, Inc. Consolidated Unaudited Condensed Balance Sheets (In thousands) ASSETS Apr 30, 2005 Oct 31, 2004 ----------------- ---------------- Current assets Cash and cash equivalents $ 986,879 $ 434,404 Short-term investments 610,862 777,063 Receivables, net 209,676 269,431 Prepaid expenses 30,298 25,190 Other current assets 29,232 28,846 ----------------- ---------------- Total current assets 1,866,947 1,534,934 Property, plant and equipment, net 218,587 231,468 Long-term investments 57,337 55,986 Goodwill 391,904 391,088 Intangible assets, net 65,591 48,616 Deferred income taxes 401 - Other assets 28,146 29,456 ----------------- ---------------- Total assets $2,628,913 $2,291,548 ================= ================ LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 48,196 $ 55,956 Accrued compensation 103,648 126,612 Other accrued liabilities 90,432 98,983 Income taxes payable 52,565 37,077 Deferred revenue 321,181 374,186 ----------------- ---------------- Total current liabilities 616,022 692,814 Deferred income taxes 4,096 3,855 Senior convertible debentures 600,000 600,000 ----------------- ---------------- Total liabilities 1,220,118 1,296,669 Minority interests 5,918 6,515 Preferred stock 25,000 25,000 Stockholders' equity 1,377,877 963,364 ----------------- ---------------- Total liabilities and stockholders' equity $2,628,913 $2,291,548 ================= ================ 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 --------------------------- -------------------------- Apr 30, 2005 Apr 30, 2004 Apr 30, 2005 Apr 30, 2004 ------------ ------------ ------------ ------------ Cash flows from operating activities: Net income (loss) $ (15,627) $ 10,383 $ 379,534 $ 20,518 Adjustments to reconcile net income (loss) to net cash (used) provided by operating activities: Depreciation and amortization 18,306 10,940 31,201 27,092 Change in accounts receivable allowances (570) (1,105) (5,789) (1,924) Income tax benefits related to stock plans 9,000 - 13,260 - Utilization of previously reserved acquired net operating losses 600 - 29,600 - Gain on sale of property, plant and equipment - (1,977) (1,589) (1,977) Impairment of investments 917 750 1,930 1,896 Acquired in-process research and development 480 - 480 - Changes in current assets and liabilities, excluding the effect of acquisitions (37,900) (47,275) (21,774) (42,868) ------------ ------------ ------------ ------------ Net cash (used) provided by operating activities (24,794) (28,284) 426,853 2,737 ------------ ------------ ------------ ------------ Cash flows from financing activities: Issuance of common stock, net 8,512 18,127 12,979 46,620 Issuance of convertible preferred stock - 50,000 - 50,000 Payment of cash dividends on preferred stock - (102) (250) (102) ------------ ------------ ------------ ------------ Net cash provided by financing activities 8,512 68,025 12,729 96,518 ------------ ------------ ------------ ------------ Cash flows from investing activities: Purchases of property, plant and equipment (6,035) (6,547) (11,684) (12,013) Proceeds from the sale of property, plant and equipment - 1,977 10,421 1,977 Short-term investment activity 274,081 (45,213) 162,375 53 Cash paid for acquisition of SUSE, net of cash acquired - - - (200,298) Cash paid for acquisiton of Tally and Immunix, net of cash acquired (33,829) - (33,829) - Other (2,900) (2,327) (14,390) (2,434) ------------ ------------ ------------ ------------ Net cash provided (used) in investing activities 231,317 (52,110) 112,893 (212,715) ------------ ------------ ------------ ------------ Increase (decrease) in cash and cash equivalents 215,035 (12,369) 552,475 (113,460) Cash and cash equivalents - beginning of period 771,844 265,841 434,404 366,932 ------------ ------------ ------------ ------------ Cash and cash equivalents - end of period $ 986,879 $ 253,472 $ 986,879 $ 253,472 ============ ============ ============ ============ 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 April 30, 2005 Net revenue $ 297,051 $ - $ 297,051 Gross profit 179,710 - 179,710 Income (loss) from operations (6,402) 5,841 (a) (561) Income before income taxes 1,053 6,758 (b) 7,811 Net income (loss) (15,627) 17,092 (c) 1,465 Diluted net income (loss) available to common stockholders (15,752) 17,078 (d) 1,326 Diluted net income (loss) per common share $ (0.04) $ 0.04 (d) $ 0.00 Diluted weighted average shares 378,219 4,384 (e) 382,603 Fiscal quarter ended January 31, 2005 Net revenue $ 290,128 $ - $ 290,128 Gross profit 178,077 - 178,077 Income from operations 449,565 (442,730) (f) 6,835 Income before income taxes 454,600 (441,717) (g) 12,883 Net income 395,161 (385,095) (h) 10,066 Diluted net income available to common stockholders 392,384 (382,547) (i) 9,837 Diluted net income per common share $ 0.90 $ (0.87) (i) $ 0.03 Diluted weighted average shares 435,467 (52,074) (j) 383,393 Fiscal quarter ended April 30, 2004 Net revenue $ 293,556 $ - $ 293,556 Gross profit 187,114 - 187,114 Income from operations 14,462 2,929 (k) 17,391 Income before taxes 14,837 3,679 (l) 18,516 Net income 10,383 3,408 (m) 13,791 Diluted net income (loss) available to common shareholders (15,399) 29,088 (n) 13,689 Diluted net income (loss) per common share $ (0.04) $ 0.07 (n) $ 0.03 Diluted weighted average shares 384,528 12,946 (o) 397,474 Footnotes related to adjustments: (a) Reflects restructuring expenses of $5.4 million and acquired in-process research and development expense of $.5 million. (b) Reflects the items in footnote (a) and long-term investment impairments of $.9 million. (c) Reflects the items in footnotes (a) and (b) and the related tax adjustments, including a $12.1 million adjustment related to the cumulative tax effect of a settlement of potential litigation. (d) Reflects the items in footnotes (a), (b) and (c) and the related adjustments to the allocation of earnings to preferred stockholders. (e) Reflects potential common shares related to stock options and unvested restricted stock that are added to weighted average shares in computing non-GAAP diluted net income per common share. (f) Reflects a net gain on a settlement of potential litigation of $447.6 million, restructuring expenses of $6.4 million and a gain on the sale of property, plant and equipment of $1.6 million. (g) Reflects the items in footnote (f) and long-term investment impairments of $1 million. (h) Reflects the items in footnotes (f) and (g) and the related tax adjustments. (i) Reflects the items in footnotes (f), (g) and (h), a $4 million decrease in the allocation of earnings to preferred stockholders, and the addition of $1.5 million in convertible debt interest expense. (j) Reflects potential common shares related to convertible debt that are anti-dilutive when included with other dilutive shares in computing non-GAAP diluted net income per common share. (k) Reflects restructuring expenses 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. (l) Reflects the items in footnote (k) and long-term investment impairments of $0.8 million. (m) Reflects the items in footnotes (k) and (l), and the necessary related tax adjustments. (n) Reflects the items in footnotes (k), (l) and (m) and a beneficial conversion feature of $25.7 million. (o) Reflects potential common shares mainly related to stock options that are added to weighted average shares in computing non-GAAP diluted net income per common share.
Novell, Inc. Consolidated Unaudited Condensed Statements of Operations (In thousands, except per share data) Fiscal Year Trailing Four Q2 2004 % 2004 % Q1 2005 % Q2 2005 % Quarters % ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Net revenue New software licenses $ 60,250 20.5 $ 234,037 20.1 $ 44,296 15.3 $ 45,768 15.4 $ 209,082 17.5 Maintenance and services 233,306 79.5 931,880 79.9 245,832 84.7 251,283 84.6 983,351 82.5 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Total net revenue 293,556 100.0 1,165,917 100.0 290,128 100.0 297,051 100.0 1,192,433 100.0 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Cost of revenue New software licenses 6,087 2.1 23,478 2.0 4,632 1.6 4,863 1.6 21,963 1.8 Maintenance and services 100,355 34.2 392,201 33.6 107,419 37.0 112,478 37.9 421,790 35.4 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Total cost of revenue 106,442 36.3 415,679 35.7 112,051 38.6 117,341 39.5 443,753 37.2 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Gross profit 187,114 63.7 750,238 64.3 178,077 61.4 179,710 60.5 748,680 62.8 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Operating (income) expenses Sales and marketing 93,646 31.9 362,569 31.1 94,009 32.4 98,479 33.2 379,642 31.8 Product development 52,031 17.7 198,614 17.0 48,993 16.9 51,652 17.4 197,029 16.5 General and administrative 24,215 8.2 102,437 8.8 28,240 9.7 30,140 10.1 110,345 9.3 Restructuring expenses 4,737 1.6 22,903 2.0 6,419 2.2 5,361 1.8 29,946 2.5 Acquired in-process research and development - - - - - - 480 0.2 480 0.0 Gain on sale of property, plant and equipment (1,977) (0.7) (1,977) (0.2) (1,589) (0.5) - - (1,589) (0.1) Gain on settlement of potential litigation - - - - (447,560) (154.3) - - (447,560) (37.5) ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Total operating (income) expenses 172,652 58.8 684,546 58.7 (271,488) (93.6) 186,112 62.7 268,293 22.5 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Income (loss) from operations 14,462 4.9 65,692 5.6 449,565 155.0 (6,402) (2.2) 480,387 40.3 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Other income (expense) Investment income 2,464 0.8 17,986 1.5 8,440 2.9 9,323 3.1 29,773 2.5 Other, net (2,089) (0.7) (8,704) (0.7) (3,405) (1.2) (1,868) (0.6) (10,853) (0.9) ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Other income (expense), net 375 0.1 9,282 0.8 5,035 1.7 7,455 2.5 18,920 1.6 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Income (loss) before income taxes 14,837 5.1 74,974 6.4 454,600 156.7 1,053 0.4 499,307 41.9 Income tax expense 4,454 1.5 17,786 1.5 59,439 20.5 16,680 5.6 83,103 7.0 ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Net income (loss) $ 10,383 3.5 $ 57,188 4.9 $ 395,161 136.2 $ (15,627) (5.3) $ 416,204 34.9 ================== =========== ====== =========== ======= =========== ======= =========== ====== Deemed dividend related to beneficial conversion feature of preferred stock (25,680) (8.7) (25,680) (2.2) - - - - - - Preferred stock dividends (102) (0.0) (416) (0.0) (125) (0.0) (125) (0.0) (564) (0.0) Allocation of earnings to preferred stockholders - - (275) (0.0) (4,145) (1.4) - - (4,912) (0.4) ------------------ ----------- ------ ----------- ------- ----------- ------- ----------- ------ Net income (loss) available to common stockholders - basic $ (15,399) (5.2) $ 30,816 2.6 $ 390,891 134.7 $ (15,752) (5.3) $ 410,728 34.4 ================== =========== ====== =========== ======= =========== ======= =========== ====== Net income (loss) available to common stockholders - diluted $ (15,399) (5.2) $ 30,816 2.6 $ 392,384 135.2 $ (15,752) (5.3) $ 414,195 34.7 ================== =========== ====== =========== ======= =========== ======= =========== ====== Net income (loss) per common share: Basic $ (0.04) $ 0.08 $ 1.04 $ (0.04) $ 1.09 Diluted $ (0.04) $ 0.08 $ 0.90 $ (0.04) $ 0.97 =========== =========== =========== =========== =========== Weighted average shares: Basic 384,528 380,715 377,257 378,219 378,156 Diluted 384,528 390,694 435,467 378,219 427,966 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 Solutions and Segment Revenue (In thousands) Fiscal Year Trailing Four Revenue by solution Q2 2004 % 2004 % Q1 2005 % Q2 2005 % Quarters % ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- IT software and solutions Identity-based computing Identity management & web services $ 24,051 8.2 $ 101,531 8.7 $ 26,843 9.3 $ 25,734 8.7 $ 107,585 9.0 Resource management 29,902 10.2 124,337 10.7 29,969 10.3 31,336 10.5 126,411 10.6 ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- Total identity-based computing 53,953 18.4 225,868 19.4 56,812 19.6 57,071 19.2 233,997 19.6 ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- Cross platform services Linux & platform services 89,447 30.5 349,593 30.0 82,151 28.3 79,620 26.8 344,046 28.9 Collaboration & other products 31,910 10.9 123,544 10.6 26,720 9.2 29,036 9.8 118,051 9.9 ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- Total cross platform services 121,358 41.3 473,137 40.6 108,871 37.5 108,656 36.6 462,096 38.8 ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- Total software licenses & maintenance 175,311 59.7 699,005 60.0 165,683 57.1 165,727 55.8 696,093 58.4 Worldwide services 76,452 26.0 304,848 26.1 80,396 27.7 87,417 29.4 325,446 27.3 ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- Total IT software and solutions 251,763 85.8 1,003,853 86.1 246,079 84.8 253,144 85.2 1,021,539 85.7 Celerant consulting 41,793 14.2 162,064 13.9 44,049 15.2 43,907 14.8 170,893 14.3 ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- Total net revenue by solution $ 293,556 100.0 $ 1,165,917 100.0 $ 290,128 100.0 $ 297,051 100.0 $ 1,192,433 100.0 ============ ======== ============= ======= ============= ======= ============= ======= ============= ======= Revenue by segment North America $ 124,815 42.5 $ 514,477 44.1 $ 123,763 42.7 $ 125,219 42.2 $ 522,884 43.9 EMEA 99,016 33.7 378,273 32.4 95,551 32.9 99,044 33.3 386,001 32.4 Asia Pacific 15,391 5.2 61,774 5.3 14,671 5.1 14,181 4.8 60,416 5.1 Latin America 5,363 1.8 21,026 1.8 5,219 1.8 5,346 1.8 20,440 1.7 Japan 7,178 2.4 28,304 2.4 6,875 2.4 9,354 3.1 31,799 2.7 Celerant Consulting 41,793 14.2 162,063 13.9 44,049 15.2 43,907 14.8 170,893 14.3 ------------ -------- ------------- ------- ------------- ------- ------------- ------- ------------- ------- Total net revenue by segment $ 293,556 100.0 $ 1,165,917 100.0 $ 290,128 100.0 $ 297,051 100.0 $ 1,192,433 100.0 ============ ======== ============= ======= ============= ======= ============= ======= ============= ======= 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 Linux & Platform Services 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 Trailing Four Q2 2004 % 2004 % Q1 2005 % Q2 2005 % Quarters % -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- IT software and solutions Identity-based computing Identity management & web services New software licenses $ 9,087 3.1 $ 40,545 3.5 $ 9,724 3.4 $ 7,970 2.7 $ 41,079 3.4 Maintenance and services 14,965 5.1 60,986 5.2 17,119 5.9 17,764 6.0 66,507 5.6 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- 24,052 8.2 101,531 8.7 26,843 9.3 25,734 8.7 107,585 9.0 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Resource management New software licenses 9,029 3.1 40,505 3.5 6,938 2.4 7,171 2.4 35,472 3.0 Maintenance and services 20,873 7.1 83,832 7.2 23,031 7.9 24,165 8.1 90,939 7.6 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- 29,902 10.2 124,337 10.7 29,969 10.3 31,336 10.5 126,411 10.6 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Cross platform services Linux & platform services New software licenses 30,705 10.5 107,698 9.2 20,829 7.2 20,868 7.0 92,375 7.7 Maintenance and services 58,742 20.0 241,895 20.7 61,322 21.1 58,752 19.8 251,670 21.1 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- 89,447 30.5 349,593 30.0 82,151 28.3 79,620 26.8 344,046 28.9 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Collaboration & other products New software licenses 11,429 3.9 45,288 3.9 6,805 2.3 9,759 3.3 40,156 3.4 Maintenance and services 20,481 7.0 78,255 6.7 19,915 6.9 19,277 6.5 77,894 6.5 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- 31,910 10.9 123,544 10.6 26,720 9.2 29,036 9.8 118,051 9.9 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Total software, licenses & maintenance New software licenses 60,250 20.5 234,037 20.1 44,296 15.3 45,768 15.4 209,082 17.5 Maintenance and services 115,061 39.2 464,968 39.9 121,387 41.8 119,959 40.4 487,011 40.8 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- 175,311 59.7 699,005 60.0 165,683 57.1 165,727 55.8 696,093 58.4 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Worldwide services 76,452 26.0 304,848 26.1 80,396 27.7 87,417 29.4 325,446 27.3 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Total IT software and solutions New software licenses 60,250 20.5 234,037 20.1 44,296 15.3 45,768 15.4 209,082 17.5 Maintenance and services 191,513 65.2 769,816 66.0 201,783 69.5 207,376 69.8 812,457 68.1 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- 251,763 85.8 1,003,853 86.1 246,079 84.8 253,144 85.2 1,021,539 85.7 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Celerant consulting 41,793 14.2 162,064 13.9 44,049 15.2 43,907 14.8 170,893 14.3 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Total net revenue New software licenses 60,250 20.5 234,037 20.1 44,296 15.3 45,768 15.4 209,082 17.5 Maintenance and services 233,306 79.5 931,880 79.9 245,832 84.7 251,283 84.6 983,351 82.5 -------------- ------- ------------- -------- ------------- -------- -------------- ------- ------------- -------- Total net revenue $ 293,556 100.0 $ 1,165,917 100.0 $ 290,128 100.0 $ 297,051 100.0 $ 1,192,433 100.0 ============== ======= ============= ======== ============= ======== ============== ======= ============= ======== 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 Linux & Platform Services as maintenance and services revenue.
Novell, Inc. Major IT Software and Solutions Included Within Reported Line Items Identity-Based Computing Identity Management & Web Services > Identity Manager (DirXML) > Web Services (exteNd) > eDirectory > BorderManager > SecureLogin > iChain Resource Management > ZEN Products > Red Carpet Products Cross platform services Linux & Platform Services > Open Enterprise Server > SUSE LINUX Enterprise Server > SUSE LINUX Professional > NetWare > Small Business Suite > Cluster Services Collaboration & Other Products > GroupWise > Other Products Worldwide services > IT Consulting Services > Technical Support Services > Training Services