Exhibit 99.1
FOR IMMEDIATE RELEASE
August 25, 2005
Novell Reports Financial Results for Third Fiscal Quarter 2005
WALTHAM, Mass. – August 25, 2005 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its third fiscal quarter ended July 31, 2005. For the quarter, Novell reported revenues of $290 million, compared to revenues of $305 million for the third fiscal quarter 2004. Net income available to common stockholders in the third fiscal quarter 2005 was $2 million or $0.00 earnings per diluted common share. This compared to a net income available to common stockholders of $24 million, or $0.06 per diluted common share, for the third fiscal quarter 2004.
On a non-GAAP basis, adjusted net income available to common stockholders for the third fiscal quarter 2005 was $14 million, or $0.03 per diluted common share, excluding restructuring charges of $9 million and excluding a net gain of $1 million on the sale of previously impaired long-term investments. This compares to non-GAAP adjusted net income available to common stockholders for the third fiscal quarter 2004 of $14 million, or $0.03 per diluted common share, which excluded the effect of the payment from Canopy of $19 million as a result of a legal judgment in favor of Novell, restructuring charges of $9 million and long-term investment impairments of $1 million. In the third fiscal quarter of 2004, $14 million of the Canopy payment was recorded as revenue and the remaining $5 million as interest income. 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 2005 as compared to the prior year's period, foreign currency exchange rates favorably impacted total revenue by approximately $4 million and did not have a material impact on net income.
During the third fiscal quarter 2005, Novell recognized Linux-related product revenue of $44 million, including $31 million from sales of Novell Open Enterprise Server (OES) and $8 million from subscriptions to SUSE™ LINUX Enterprise Server (SLES). OES revenue of $31 million reflects the first full quarter that OES was available. Sales of stand-alone subscriptions to SLES totaled 28,000 subscriptions in the quarter.
For the first nine months of fiscal 2005, Novell reported revenue of $877 million and net income available to common stockholders of $382 million, or $0.88 per diluted common share, including a $448 million net legal settlement with Microsoft. For the first nine months of fiscal 2004, which includes the Canopy payment, the company reported revenue of $865 million and net income available to common stockholders of $18 million, or $0.05 per diluted common share.
“Customers continue to embrace Novell's Linux and Identity solutions,” said Jack Messman, Chairman and CEO of Novell. “We were particularly pleased with our initial penetration of the Chinese market where Linux is an attractive technology for government and commercial users. Our increasingly customer-focused, go-to-market approach is leading to a stronger Novell as evidenced by our positive operating cash flow and growth in deferred revenue in the quarter. While we were profitable this quarter, we still have improvements to make in our business which will lead to cost reductions.”
On the balance sheet, cash and short-term investments were $1.6 billion at July 31, 2005, consistent with $1.6 billion at April 30, 2005. Days sales outstanding (DSO) in accounts receivable was 77 days at the end of the third fiscal quarter 2005, consistent with the year ago quarter. Deferred revenue was $365 million at the end of the third fiscal quarter 2005, up $28 million or 8% from the prior year. Cash flow from operations was a positive $15 million for the third fiscal quarter 2005, down from $65 million in the third fiscal quarter 2004, which included the $19 million payment from Canopy.
A summary of Novell’s vision, mission and strategy can be accessed on the Novell® Web site at:http://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 August 25, 2005, from Novell’s Investor Relations Web page:http://www.novell.com/company/ir/qresults/. The domestic conference call dial-in number is 866-335-5255, password “Novell”, and the international dial-in number is +1-706-679-2263, 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 7. The domestic toll-free replay number is 800-642-1687, and the international replay number is +1-706-645-9291.
Replay listeners must enter conference ID number 8265930.
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.; and SUSE is a trademark of Novell, Inc. in the United States and other countries. * 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 --------------------------------------------- --------------------------------------------- Jul 31, 2005 Jul 31, 2004 Jul 31, 2005 Jul 31, 2004 ------------------- ------------------- ------------------- ------------------- Net revenue New software licenses $ 45,628 $ 57,024 $ 135,692 $ 172,043 Maintenance and services 244,586 247,573 741,701 693,217 ------------------- ------------------- ------------------- ------------------- Total net revenue 290,214 304,597 877,393 865,260 ------------------- ------------------- ------------------- ------------------- Cost of revenue New software licenses 4,475 5,613 13,970 16,621 Maintenance and services 101,534 98,343 321,431 288,653 ------------------- ------------------- ------------------- ------------------- Total cost of revenue 106,009 103,956 335,401 305,274 ------------------- ------------------- ------------------- ------------------- Gross profit 184,205 200,641 541,992 559,986 ------------------- ------------------- ------------------- ------------------- Operating (income) expenses Sales and marketing 93,464 91,660 288,420 268,534 Product development 48,655 48,390 146,832 149,161 General and administrative 31,788 28,729 90,168 79,201 Restructuring expenses 9,375 9,250 21,155 13,987 Acquired in-process research and development - - 480 - Gain on sale of property, plant and equipment - - (1,589) (1,977) Gain on settlement of potential litigation - - (447,560) - ------------------- ------------------- ------------------- ------------------- Total operating (income) expenses 183,282 178,029 97,906 508,906 ------------------- ------------------- ------------------- ------------------- Income from operations 923 22,612 444,086 51,080 Other income (expense), net 9,258 6,182 21,748 9,034 ------------------- ------------------- ------------------- ------------------- Income before income taxes 10,181 28,794 465,834 60,114 Income tax expense 8,041 5,389 84,160 16,191 ------------------- ------------------- ------------------- ------------------- Net income $ 2,140 $ 23,405 $ 381,674 $ 43,923 =================== =================== =================== =================== Deemed dividend related to beneficial conversion feature of preferred stock - - - (25,680) Preferred stock dividends (125) (189) (375) (291) Allocation of earnings to preferred stockholders (21) - (3,987) - ------------------- ------------------- ------------------- ------------------- Net income available to common stockholders - basic $ 1,994 $ 23,216 $ 377,312 $ 17,952 =================== =================== =================== =================== Net income available to common stockholders - diluted $ 1,910 $ 23,886 $ 381,539 $ 17,952 =================== =================== =================== =================== Net income per common share: Basic $ 0.01 $ 0.06 $ 1.00 $ 0.05 Diluted $ 0.00 $ 0.06 $ 0.88 $ 0.05 Weighted average shares: Basic 380,242 383,400 378,573 382,678 Diluted 385,377 414,191 435,820 * 393,758 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 Jul 31, 2005 Oct 31, 2004 ------------------- -------------------- Current assets Cash and cash equivalents $ 985,830 $ 434,404 Short-term investments 618,461 777,063 Receivables, net 255,426 269,431 Prepaid expenses 33,399 25,190 Other current assets 25,095 28,846 ------------------- -------------------- Total current assets 1,918,211 1,534,934 Property, plant and equipment, net 211,729 231,468 Long-term investments 56,490 55,986 Goodwill 395,379 391,088 Intangible assets, net 61,715 48,616 Deferred income taxes 630 - Other assets 27,098 29,456 ------------------- -------------------- Total assets $2,671,252 $2,291,548 =================== ==================== LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 48,660 $ 55,956 Accrued compensation 101,195 126,612 Other accrued liabilities 96,360 98,983 Income taxes payable 52,855 37,077 Deferred revenue 365,365 374,186 ------------------- -------------------- Total current liabilities 664,435 692,814 Deferred income taxes 4,065 3,855 Senior convertible debentures 600,000 600,000 ------------------- -------------------- Total liabilities 1,268,500 1,296,669 Minority interests 6,308 6,515 Preferred stock 25,000 25,000 Stockholders' equity 1,371,444 963,364 ------------------- -------------------- Total liabilities and stockholders' equity $2,671,252 $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 ------------------------------------------------ ------------------------------------------------ Jul 31, 2005 Jul 31, 2004 Jul 31, 2005 Jul 31, 2004 --------------------- ---------------------- ---------------------- --------------------- Cash flows from operating activities: Net income $ 2,140 $ 23,405 $ 381,674 $ 43,923 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,107 11,854 42,308 38,956 Change in accounts receivable allowances (3,563) 81 (9,352) (1,843) Income tax benefits related to stock plans 2,906 - 16,166 - Utilization of previously reserved acquired net operating losses - - 29,600 - (Gain) loss on sale of property, plant and equipment - 10 (1,589) (1,977) (Gain) loss on impaired investments (822) 552 1,108 2,448 Acquired in-process research and development - - 480 - Changes in current assets and liabilities, excluding the effect of acquisitions 3,527 28,955 (18,247) (13,913) --------------------- ---------------------- ---------------------- --------------------- Net cash provided by operating activities 15,295 64,857 442,148 67,594 --------------------- ---------------------- ---------------------- --------------------- Cash flows from financing activities: Issuance of common stock, net 3,056 1,364 16,035 47,983 Issuance of convertible preferred stock - - - 50,000 Issuance of senior convertible debentures - 600,000 - 600,000 Payment of issuance costs on senior convertible debentures - (14,850) - (14,850) Payment of cash dividends on preferred stock (125) (190) (375) (291) Repurchase of common stock, held in treasury - (125,000) - (125,000) --------------------- ---------------------- ---------------------- --------------------- Net cash provided by financing activities 2,931 461,324 15,660 557,842 --------------------- ---------------------- ---------------------- --------------------- Cash flows from investing activities: Purchases of property, plant and equipment (8,484) (7,511) (20,168) (19,524) Proceeds from the sale of property, plant and equipment - 163 10,421 2,140 Proceeds from the sale of long-term investments 2,405 - 2,405 - Short-term investment activity (8,583) (193,567) 153,792 (193,514) Cash paid for acquisition of Salmon, net of cash acquired - (5,322) - (5,322) 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) - Other (4,613) 222 (19,003) (2,212) --------------------- ---------------------- ---------------------- --------------------- Net cash (used in) provided by investing activities (19,275) (206,015) 93,618 (418,730) --------------------- ---------------------- ---------------------- --------------------- Increase in cash and cash equivalents (1,049) 320,166 551,426 206,706 Cash and cash equivalents - beginning of period 986,879 253,472 434,404 366,932 --------------------- ---------------------- ---------------------- --------------------- Cash and cash equivalents - end of period $ 985,830 $ 573,638 $ 985,830 $ 573,638 ===================== ====================== ====================== ===================== 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, 2005 Net revenue $ 290,214 $ - $ 290,214 Gross profit 184,205 - 184,205 Income from operations 923 9,375 (a) 10,298 Income before income taxes 10,181 8,553 (b) 18,734 Net income 2,140 11,194 (c) 13,334 Diluted net income available to common stockholders 1,910 12,577 (d) 14,487 Diluted net income per common share $ 0.00 $ 0.03 (d) $ 0.03 Diluted weighted average shares 385,377 52,075 (e) 437,452 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 (f) (561) Income before income taxes 1,053 6,758 (g) 7,811 Net income (loss) (15,627) 17,092 (h) 1,465 Diluted net income (loss) available to common stockholders (15,752) 17,078 (i) 1,326 Diluted net income (loss) per common share $ (0.04) $ 0.04 (i) $ 0.00 Diluted weighted average shares 378,219 4,384 (j) 382,603 Fiscal quarter ended July 31, 2004 Net revenue $ 304,597 $ (13,500) (k) $ 291,097 Gross profit 200,641 (13,500) (k) 187,141 Income from operations 22,612 (4,070) (l) 18,542 Income before income taxes 28,794 (8,561) (m) 20,233 Net income 23,405 (9,453) (n) 13,952 Diluted net income available to common stockholders 23,886 (9,453) (n) 14,433 Diluted net income per common share $ 0.06 $ (0.03) (n) $ 0.03 Diluted weighted average shares 414,191 - 414,191 Footnotes related to adjustments: (a) Reflects restructuring expenses of $9.4 million. (b) Reflects the item in footnote (a) and a net gain on the sale of previously impaired long-term investments of $0.8 million. (c) Reflects the items in footnotes (a) and (b), and the related tax adjustments, including a $2.9 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 for preferred stock dividends and the allocation of earnings to preferred stockholders. (e) Reflects potential common shares related to convertible debt that are added to weighted average shares in computing non-GAAP diluted net income per common share. (f) Reflects restructuring expenses of $5.4 million and acquired in-process research and development expense of $0.5 million. (g) Reflects the items in footnote (f) and long-term investment impairments of $0.9 million. (h) Reflects the items in footnotes (f) and (g), and the related tax adjustments, including a $12.1 million adjustment related to the cumulative tax effect of a settlement of potential litigation. (i) Reflects the items in footnotes (f), (g) and (h), and the related adjustments for preferred stock dividends and the allocation of earnings to preferred stockholders. (j) 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. (k) Reflects satisfaction of judgment against The Canopy Group, Inc. recorded as revenue of $13.5 million. (l) Reflects the item in footnote (k), restructuring charges of $9.3 million and integration costs related to SUSE of $0.2 million. (m) Reflects the items in footnotes (k) and (l), satisfaction of judgment against The Canopy Group, Inc. recorded as interest income of $5 million and long-term investment impairments of $0.6 million. (n) Reflects the items in footnotes (k), (l) and (m), and the necessary related tax adjustments.
Novell, Inc. Consolidated Unaudited Condensed Statements of Operations (In thousands, except per share data) Fiscal Year Trailing Four Q3 2004 % 2004 % Q2 2005 % Q3 2005 % Quarters % ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Net revenue New software licenses $ 57,024 18.7 $ 234,037 20.1 $ 45,768 15.4 $ 45,628 15.7 $ 197,686 16.8 Maintenance and services 247,573 81.3 931,880 79.9 251,283 84.6 244,586 84.3 980,364 83.2 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Total net revenue 304,597 100.0 1,165,917 100.0 297,051 100.0 290,214 100.0 1,178,050 100.0 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Cost of revenue New software licenses 5,613 1.8 23,478 2.0 4,863 1.6 4,475 1.5 20,827 1.8 Maintenance and services 98,343 32.3 392,201 33.6 112,478 37.9 101,534 35.0 424,979 36.1 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Total cost of revenue 103,956 34.1 415,679 35.7 117,341 39.5 106,009 36.5 445,806 37.8 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Gross profit 200,641 65.9 750,238 64.3 179,710 60.5 184,205 63.5 732,244 62.2 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Operating (income) expenses Sales and marketing 91,660 30.1 365,319 31.3 99,712 33.6 93,464 32.2 385,205 32.7 Product development 48,390 15.9 195,864 16.8 50,419 17.0 48,655 16.8 193,535 16.4 General and administrative 28,729 9.4 102,437 8.8 30,140 10.1 31,788 11.0 113,404 9.6 Restructuring expenses 9,250 3.0 22,903 2.0 5,361 1.8 9,375 3.2 30,071 2.6 Acquired in-process research and development - - - - 480 0.2 - - 480 0.0 Gain on sale of property, plant and equipment - - (1,977) (0.2) - - - - (1,589) (0.1) Gain on settlement of potential litigation - - - - - - - - (447,560) (38.0) ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Total operating (income) expenses 178,029 58.4 684,546 58.7 186,112 62.7 183,282 63.2 273,546 23.2 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Income (loss) from operations 22,612 7.4 65,692 5.6 (6,402) (2.2) 923 0.3 458,698 38.9 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Other income (expense) Investment income 7,574 2.5 17,986 1.5 9,323 3.1 10,832 3.7 33,031 2.8 Other, net (1,392) (0.5) (8,704) (0.7) (1,868) (0.6) (1,574) (0.5) (11,035) (0.9) ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Other income (expense), net 6,182 2.0 9,282 0.8 7,455 2.5 9,258 3.2 21,996 1.9 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Income before income taxes 28,794 9.5 74,974 6.4 1,053 0.4 10,181 3.5 480,694 40.8 Income tax expense 5,389 1.8 17,786 1.5 16,680 5.6 8,041 2.8 85,755 7.3 ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Net income (loss) $ 23,405 7.7 $ 57,188 4.9 $ (15,627) (5.3) $ 2,140 0.7 $ 394,939 33.5 ============ ========== ============== ======== =============== ========= ============== ========= =============== ========= Deemed dividend related to beneficial conversion feature of preferred stock - - (25,680) (2.2) - - - - - - Preferred stock dividends (189) (0.1) (416) (0.0) (125) (0.0) (125) (0.0) (500) (0.0) Allocation of earnings to preferred stockholders - - (275) (0.0) - - (21) (0.0) (4,133) (0.4) ------------ ---------- -------------- -------- --------------- --------- -------------- --------- --------------- --------- Net income (loss) available to common stockholders - basic $ 23,216 7.6 $ 30,816 2.6 $ (15,752) (5.3) $ 1,994 0.7 $ 390,306 33.1 ============ ========== ============== ======== =============== ========= ============== ========= =============== ========= Net income (loss) available to common stockholders - diluted $ 23,886 7.8 $ 30,816 2.6 $ (15,752) (5.3) $ 1,910 0.7 $ 396,194 33.6 ============ ========== ============== ======== =============== ========= ============== ========= =============== ========= Net income (loss) per common share: Basic $ 0.06 $ 0.08 $ (0.04) $ 0.01 $ 1.03 Diluted $ 0.06 $ 0.08 $ (0.04) $ 0.00 $ 0.91 ============ ============== =============== ============== =============== Weighted average shares: Basic 383,400 381,100 378,219 380,242 377,718 Diluted 414,191 390,879 378,219 385,377 435,425 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 Q3 2004 % 2004 % Q2 2005 % Q3 2005 % Quarters % ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- IT software and solutions Identity-based computing Identity management & web services $ 26,720 8.8 $ 101,531 8.7 $ 25,735 8.7 $ 27,397 9.4 $ 108,263 9.2 Resource management 31,504 10.3 124,337 10.7 31,336 10.5 32,881 11.3 127,788 10.8 ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- Total identity-based computing 58,224 19.1 225,868 19.4 57,071 19.2 60,278 20.8 236,051 20.0 ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- Cross platform services Linux & platform services 97,479 32.0 349,593 30.0 79,620 26.8 79,807 27.5 326,373 27.7 Collaboration & other products 30,194 9.9 123,544 10.6 29,036 9.8 27,171 9.4 115,028 9.8 ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- Total cross platform services 127,673 41.9 473,137 40.6 108,656 36.6 106,978 36.9 441,401 37.5 ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- Total software licenses & maintenance 185,897 61.0 699,005 60.0 165,727 55.8 167,256 57.6 677,452 57.5 Worldwide services 74,944 24.6 304,848 26.1 87,417 29.4 85,126 29.3 335,628 28.5 ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- Total IT software and solutions 260,841 85.6 1,003,853 86.1 253,144 85.2 252,382 87.0 1,013,080 86.0 Celerant consulting 43,756 14.4 162,064 13.9 43,907 14.8 37,832 13.0 164,970 14.0 ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- Total net revenue by solution $ 304,597 100.0 $ 1,165,917 100.0 $ 297,051 100.0 $ 290,214 100.0 $ 1,178,050 100.0 ================= ========= ================= ========== ================= ========== ================= ========= ================= =========== Revenue by segment North America $ 141,078 46.3 $ 514,477 44.1 $ 125,219 42.2 $ 129,886 44.8 $ 511,692 43.4 EMEA 92,209 30.3 378,273 32.4 99,044 33.3 92,633 31.9 386,425 32.8 Asia Pacific 16,082 5.3 61,774 5.3 14,181 4.8 17,019 5.9 61,353 5.2 Latin America 4,539 1.5 21,026 1.8 5,346 1.8 5,590 1.9 21,491 1.8 Japan 6,933 2.3 28,304 2.4 9,354 3.1 7,254 2.5 32,120 2.7 Celerant Consulting 43,756 14.4 162,063 13.9 43,907 14.8 37,832 13.0 164,969 14.0 ----------------- --------- ----------------- ---------- ----------------- ---------- ----------------- --------- ----------------- ----------- Total net revenue by segment $ 304,597 100.0 $ 1,165,917 100.0 $ 297,051 100.0 $ 290,214 100.0 $ 1,178,050 100.0 ================= ========= ================= ========== ================= ========== ================= ========= ================= =========== 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 Q3 2004 % 2004 % Q2 2005 % Q3 2005 % Quarters % ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- IT software and solutions Identity-based computing Identity management & web services New software licenses $ 11,369 3.7 $ 40,545 3.5 $ 7,970 2.7 $ 8,647 3.0 $ 38,358 3.3 Maintenance and services 15,351 5.0 60,986 5.2 17,765 6.0 18,750 6.5 69,905 5.9 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- 26,720 8.8 101,531 8.7 25,735 8.7 27,397 9.4 108,263 9.2 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Resource management New software licenses 10,120 3.3 40,505 3.5 7,171 2.4 8,195 2.8 33,546 2.8 Maintenance and services 21,384 7.0 83,832 7.2 24,165 8.1 24,686 8.5 94,242 8.0 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- 31,504 10.3 124,337 10.7 31,336 10.5 32,881 11.3 127,788 10.8 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Cross platform services Linux & platform services New software licenses 25,221 8.3 107,698 9.2 20,868 7.0 20,667 7.1 87,821 7.5 Maintenance and services 72,258 23.7 241,895 20.7 58,752 19.8 59,140 20.4 238,552 20.2 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- 97,479 32.0 349,593 30.0 79,620 26.8 79,807 27.5 326,373 27.7 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Collaboration & other products New software licenses 10,314 3.4 45,289 3.9 9,759 3.3 8,119 2.8 37,961 3.2 Maintenance and services 19,880 6.5 78,255 6.7 19,277 6.5 19,052 6.6 77,067 6.5 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- 30,194 9.9 123,544 10.6 29,036 9.8 27,171 9.4 115,028 9.8 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Total software, licenses & maintenance New software licenses 57,024 18.7 234,037 20.1 45,768 15.4 45,628 15.7 197,686 16.8 Maintenance and services 128,873 42.3 464,968 39.9 119,959 40.4 121,628 41.9 479,766 40.7 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- 185,897 61.0 699,005 60.0 165,727 55.8 167,256 57.6 677,452 57.5 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Worldwide services 74,944 24.6 304,848 26.1 87,417 29.4 85,126 29.3 335,628 28.5 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Total IT software and solutions New software licenses 57,024 18.7 234,037 20.1 45,768 15.4 45,628 15.7 197,686 16.8 Maintenance and services 203,817 66.9 769,816 66.0 207,376 69.8 206,754 71.2 815,394 69.2 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- 260,841 85.6 1,003,853 86.1 253,144 85.2 252,382 87.0 1,013,080 86.0 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Celerant consulting 43,756 14.4 162,064 13.9 43,907 14.8 37,832 13.0 164,970 14.0 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Total net revenue New software licenses 57,024 18.7 234,037 20.1 45,768 15.4 45,628 15.7 197,686 16.8 Maintenance and services 247,573 81.3 931,880 79.9 251,283 84.6 244,586 84.3 980,364 83.2 ----------------- ---------- ----------------- ---------- ------------------ --------- ----------------- --------- ----------------- ---------- Total net revenue $ 304,597 100.0 $ 1,165,917 100.0 $ 297,051 100.0 $ 290,214 100.0 $ 1,178,050 100.0 ================= ========== ================= ========== ================== ========= ================= ========= ================= ========== 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 > ZENworks Suite > ZENworks Patch Management > ZENworks Asset Management > ZENworks Linux Management (Red Carpet) 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 > Novell Linux Desktop > Other Products Worldwide services > IT Consulting Services > Technical Support Services > Training Services