Exhibit 99.1
FOR IMMEDIATE RELEASE
December 1, 2005
Novell Reports Financial Results for Fourth Fiscal Quarter and Full Fiscal Year 2005
Net revenue grows 7% to $320 million, Linux subscriptions more than triple to 65,000, and Identity solutions grow 35% year over year
WALTHAM, Mass. – December 1, 2005 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its fourth fiscal quarter and fiscal year ended October 31, 2005. For the quarter, Novell reported revenue of $320 million, compared to revenue of $301 million for the fourth fiscal quarter 2004. Net loss available to common stockholders in the fourth fiscal quarter 2005 was $5 million or $0.01 loss per diluted common share. This compared to net income available to common stockholders of $15 million, or $0.03 per diluted common share, for the fourth fiscal quarter 2004.
On a non-GAAP basis, adjusted net income available to common stockholders for the fourth fiscal quarter 2005 was $33 million, or $0.07 per diluted common share, which excludes restructuring charges of $38 million, impairments of investments and intangible assets of $2 million and adjustments for income taxes, debt interest expense and the allocation of earnings to preferred stockholders. This compares to non-GAAP adjusted net income available to common stockholders for the fourth fiscal quarter 2004 of $25 million, or $0.06 per diluted common share, which excludes restructuring charges of $9 million and net investment impairments of $1 million.
For the full fiscal year 2005, Novell reported revenue of $1.198 billion and diluted net income available to common stockholders of $378 million, or $0.86 per diluted common share, including a $448 million net legal settlement with Microsoft. Comparatively, revenue for the full fiscal year 2004 was $1.166 billion and net income available to common stockholders was $31 million, or $0.08 per diluted common share.
During the fourth fiscal quarter 2005, Novell recognized Linux* platform revenue of $61 million, which was up 418% from the year ago quarter. Linux platform revenue included $46 million from sales of Open Enterprise Server (OES) and $15 million of revenue from other Linux products and services. Sales of stand-alone subscriptions to SUSE® Linux Enterprise Server (SLES) totaled 65,000 subscriptions in the quarter, excluding subscriptions sold under enterprise-wide licensing deals, up 137% sequentially, and 216% on a year over year basis. For the full fiscal year 2005, Novell reported Linux platform revenue of $148 million, up 278% from fiscal 2004.
During the fourth fiscal quarter 2005, Novell recognized $84 million of Identity-driven computing revenue, up 35% year over year. Identity-driven computing revenue for the full fiscal year 2005 totaled $258 million, an increase of 14% year over year.
“We are very pleased with the strong finish we had in this fiscal year ” said Jack Messman, Chairman and CEO of Novell. “Our quarterly revenue and profitability on a non-GAAP basis were the highest Novell has achieved for several years. We've made steady progress over the past two years in transforming Novell, including hiring key executives, restructuring our field operations and focusing our business on the Linux and Identity markets. While we are not yet fully complete in that transformation and we still have operational hurdles ahead of us, we enter fiscal year 2006 better prepared to take advantage of our growth opportunities in Linux and Identity. ”
Cash, cash equivalents and short-term investments were $1.7 billion at October 31, 2005, up from $1.6 billion at July 31, 2005. Days sales outstanding (DSO) in accounts receivable was 81 days at the end of the fourth fiscal quarter 2005, up from 77 in the year ago quarter. Deferred revenue was $406 million at the end of the fourth fiscal quarter 2005, up $32 million or 8% from the prior year. Cash flow from operations was $58 million for the fourth fiscal quarter 2005, up from $52 million in the fourth fiscal quarter 2004.
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.
With regard to the previously announced common stock repurchase plan, Novell has not repurchased any of its common stock to date because it has been continuously subject to self-imposed trading blackouts since the share repurchase program was announced on September 22, 2005.
Financial Outlook
Novell management provided the following financial guidance:
- Net revenue for the first fiscal quarter 2006 is expected to be between $260 and $270 million.
- Net income per diluted common share for the first fiscal quarter 2006 is expected to be between $0.02 and $0.03, excluding an estimated $0.03 per share expense from adoption of the new stock-based compensation accounting standard.
- The previously announced restructuring is expected to negatively impact revenue by approximately $40 to $50 million in the full fiscal year 2006, excluding continued expected revenue declines in Novell's legacy Workgroup businesses.
- Novell is targeting operating margins between 12% and 15% for fiscal year 2008.
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 5:00 PM ET December 1, 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 ET, December 14. 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 2116994.
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 Identity-driven computing and Linux and Platform 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 and resource management strategies, Novell’s ability to take a competitive position in the Linux and identity and resource 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 Post-Effective Amendment No. 5 to Form S-3 filed with the Securities and Exchange Commission on October 14, 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) delivers Software for the Open Enterprise™. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of-breed, open standards-based software. With over 20 years of experience, more than 5,000 employees, 5,000 partners and support centers around the world, Novell helps customers gain control over their IT operating environment while reducing cost. More information about Novell can be found athttp://www.novell.com.
_________________
Novell and SUSE are registered trademarks, and Software for the Open Enterprise 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 Ended ---------------------------------- --------------------------------- Oct 31, 2005 Oct 31, 2004 Oct 31, 2005 Oct 31, 2004 -------------- --------------- -------------- -------------- Net revenue Software licenses $ 78,111 $ 61,994 $ 213,803 $ 234,037 Maintenance and services 242,192 238,663 983,893 931,880 -------------- --------------- -------------- -------------- Total net revenue 320,303 300,657 1,197,696 1,165,917 -------------- --------------- -------------- -------------- Cost of revenue Software licenses 7,630 6,857 21,600 23,478 Maintenance and services 100,088 103,548 421,519 392,201 -------------- --------------- -------------- -------------- Total cost of revenue 107,718 110,405 443,119 415,679 -------------- --------------- -------------- -------------- Gross profit 212,585 190,252 754,577 750,238 -------------- --------------- -------------- -------------- Operating expenses Sales and marketing 100,426 96,785 388,846 365,319 Product development 53,798 46,703 200,630 195,864 General and administrative 31,858 23,236 122,026 102,437 Restructuring expenses 37,951 8,916 59,106 22,903 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 expenses 224,033 175,640 321,939 684,546 -------------- --------------- -------------- -------------- Income (loss) from operations (11,448) 14,612 432,638 65,692 Other income, net 11,756 248 33,504 9,282 -------------- --------------- -------------- -------------- Income before income taxes 308 14,860 466,142 74,974 Income tax expense 5,260 1,595 89,420 17,786 -------------- --------------- -------------- -------------- Net income (loss) $ (4,952) $ 13,265 $ 376,722 $ 57,188 ============== =============== ============== ============== Deemed dividend related to beneficial conversion feature of preferred stock - - - (25,680) Preferred stock dividends (91) (125) (466) (416) Allocation of earnings to preferred stockholders - - (3,667) (274) -------------- --------------- -------------- -------------- Net income (loss) available to common stockholders - basic $ (5,043) $ 13,140 $ 372,589 $ 30,818 ============== =============== ============== ============== Net income (loss) available to common stockholders - diluted $ (5,043) $ 14,758 $ 378,159 $ 30,818 ============== =============== ============== ============== Net income (loss) per common share: Basic $ (0.01) $ 0.03 $ 0.98 $ 0.08 Diluted $ (0.01) $ 0.03 $ 0.86 $ 0.08 Weighted average shares: Basic 382,279 376,367 379,499 381,100 Diluted 382,279 438,317 * 440,585 * 390,879 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. * Fiscal year 2005 and the fourth fiscal quarter 2004 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 Oct 31, 2005 Oct 31, 2004 ----------------- ----------------- Current assets Cash and cash equivalents $ 818,738 $ 434,404 Short-term investments 843,666 777,063 Receivables, net 293,627 269,431 Prepaid expenses 30,777 27,000 Other current assets 29,745 28,846 ----------------- ----------------- Total current assets 2,016,553 1,536,744 Property, plant and equipment, net 212,377 231,468 Long-term investments 54,340 55,986 Goodwill 395,509 391,088 Intangible assets, net 56,421 48,616 Deferred income taxes 1,384 - Other assets 25,274 29,456 ----------------- ----------------- Total assets $2,761,858 $2,293,358 ================= ================= LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 45,445 $ 55,956 Accrued compensation 113,760 126,612 Other accrued liabilities 131,105 98,983 Income taxes payable 56,869 37,077 Deferred revenue 405,751 374,186 ----------------- ----------------- Total current liabilities 752,930 692,814 Deferred income taxes 4,537 3,855 Senior convertible debentures 600,000 600,000 ----------------- ----------------- Total liabilities 1,357,467 1,296,669 Minority interests 8,555 8,325 Preferred stock 9,350 25,000 Stockholders' equity 1,386,486 963,364 ----------------- ----------------- Total liabilities and stockholders' equity $2,761,858 $2,293,358 ================= ================= Certain reclassifications 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, 2005 Oct 31, 2004 Oct 31, 2005 Oct 31, 2004 ------------ ------------ ------------ ------------ Cash flows from operating activities: Net income (loss) $ (4,952) $ 13,265 $ 376,722 $ 57,188 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 13,953 14,536 56,261 53,482 Change in accounts receivable allowances 1,514 (3,154) (7,838) (4,923) Income tax benefits related to stock plans (2,367) - 13,799 - Utilization of previously reserved acquired net operating losses - - 29,600 - (Gain) loss on sale of property, plant and equipment - 328 (1,589) (1,639) Impairment of intangible assets 1,521 - 1,521 - Impairment of investments 192 1,400 1,300 3,848 Acquired in-process research and development - - 480 - Changes in current assets and liabilities, excluding the effect of acquisitions 48,392 25,128 30,158 11,250 ------------ ------------ ------------ ------------ Net cash provided by operating activities 58,253 51,503 500,414 119,206 ------------ ------------ ------------ ------------ Cash flows from financing activities: Issuance of common stock, net 6,073 10,178 22,108 58,162 Issuance of convertible preferred stock - - - 50,000 Issuance of senior convertible debentures - - - 600,000 Payment of issuance costs on senior convertible debentures - - - (14,850) Payment of cash dividends on preferred stock (216) - (591) (292) Repurchase of common stock, held in treasury - - - (125,000) ------------ ------------ ------------ ------------ Net cash provided by financing activities 5,857 10,178 21,517 568,020 ------------ ------------ ------------ ------------ Cash flows from investing activities: Purchases of property, plant and equipment (10,613) (7,473) (30,781) (26,997) Proceeds from the sale of property, plant and equipment - 2,811 10,421 4,951 Long-term investment activity 1,633 (1,414) 281 (9,399) Short-term investment activity (228,162) (199,981) (74,370) (393,495) Cash paid for acquisition of Salmon, net of cash acquired - - - (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) - Purchase of intangible assets - - (15,500) - Other 5,940 5,142 6,181 10,806 ------------ ------------ ------------ ------------ Net cash used in investing activities (231,202) (200,915) (137,597) (619,754) ------------ ------------ ------------ ------------ Increase (decrease) in cash and cash equivalents (167,092) (139,234) 384,334 67,472 Cash and cash equivalents - beginning of period 985,830 573,638 434,404 366,932 ------------ ------------ ------------ ------------ Cash and cash equivalents - end of period $ 818,738 $ 434,404 $ 818,738 $ 434,404 ============ ============ ============ ============ Certain reclassifications 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) Fiscal Quarter Ended Fiscal Year Ended ---------------------------- ---------------------------- Oct 31, 2005 Oct 31, 2004 Oct 31, 2005 Oct 31, 2004 --------------------------------------------------------------- GAAP diluted net income (loss) available to common stockholders $ (5,043) $ 14,758 $ 378,159 $ 30,818 ------------ ------------ ------------ ------------ Pre-income tax adjustments: Microsoft settlement - - (447,560) - Canopy settlement - - - (18,566) Restructuring expenses 37,951 8,916 59,106 22,903 Gain on sale of property, plant and equipment - - (1,589) (1,977) Impairment of intangible assets 1,521 - 1,521 - Acquired in-process research and development - - 480 - Integration costs - - - 372 Impairment of investments 486 1,401 1,594 3,848 ------------ ------------ ------------ ------------ Sub-total 39,958 10,317 (386,448) 6,580 Income tax adjustments: Tax adjustments, net (1,569) - (4,232) (1,163) Cumulative tax effect of the Microsoft settlement (1,700) - 70,560 - Diluted net income (loss) adjustments: Debt interest expense 1,493 - - 1,974 Preferred stock dividends - - - 416 Preferred stock beneficial conversion feature - - - 25,680 Allocation of earnings to preferred and and minority stockholders (391) - 2,991 275 ------------ ------------ ------------ ------------ Non-GAAP diluted net income available to common stockholders $ 32,748 $ 25,075 $ 61,030 $ 64,580 ============ ============ ============ ============ GAAP diluted net income (loss) per common share $ (0.01) $ 0.03 $ 0.86 $ 0.08 Adjustments detailed above 0.08 0.03 (0.72) 0.08 ------------ ------------ ------------ ------------ Non-GAAP diluted net income per common share $ 0.07 $ 0.06 $ 0.14 $ 0.16 ============ ============ ============ ============ GAAP diluted weighted average shares 382,279 438,317 440,585 390,879 Change in dilution from assumed: Conversion of convertible debt 52,075 - - 17,122 Conversion of preferred stock - - - 3,388 Stock option exercises 8,304 - - - Restricted stock and stock-based compensation changes 403 - - - ------------ ------------ ------------ ------------ Non-GAAP diluted weighted average shares 443,061 438,317 440,585 411,389 ============ ============ ============ ============ Certain reclassifications 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 2004 % 2004 % Q3 2005 % Q4 2005 % 2005 % ----------------- ----------- ------ ----------- ------- ----------- ------ ------------------ Net revenue Software licenses $ 61,994 20.6 $ 234,037 20.1 $ 45,628 15.7 $ 78,111 24.4 $ 213,803 17.9 Maintenance and services 238,663 79.4 931,880 79.9 244,586 84.3 242,192 75.6 983,893 82.1 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Total net revenue 300,657 100.0 1,165,917 100.0 290,214 100.0 320,303 100.0 1,197,696 100.0 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Cost of revenue Software licenses 6,857 2.3 23,478 2.0 4,475 1.5 7,630 2.4 21,600 1.8 Maintenance and services 103,548 34.4 392,201 33.6 101,534 35.0 100,088 31.2 421,519 35.2 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Total cost of revenue 110,405 36.7 415,679 35.7 106,009 36.5 107,718 33.6 443,119 37.0 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Gross profit 190,252 63.3 750,238 64.3 184,205 63.5 212,585 66.4 754,577 63.0 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Operating expenses Sales and marketing 96,785 32.2 365,319 31.3 93,464 32.2 100,426 31.4 388,846 32.5 Product development 46,703 15.5 195,864 16.8 48,655 16.8 53,798 16.8 200,630 16.8 General and administrative 23,236 7.7 102,437 8.8 31,788 11.0 31,858 9.9 122,026 10.2 Restructuring expenses 8,916 3.0 22,903 2.0 9,375 3.2 37,951 11.8 59,106 4.9 Acquired in-process research and development - - - - - - - - 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) (37.4) -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Total operating expenses 175,640 58.4 684,546 58.7 183,282 63.2 224,033 69.9 321,939 26.9 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Income (loss) from operations 14,612 4.9 65,692 5.6 923 0.3 (11,448) (3.6) 432,638 36.1 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Other income Investment income 4,436 1.5 17,986 1.5 12,337 4.3 13,035 4.1 43,135 3.6 Other, net (4,188) (1.4) (8,704) (0.7) (3,079) (1.1) (1,279) (0.4) (9,631) (0.8) -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Other income, net 248 0.1 9,282 0.8 9,258 3.2 11,756 3.7 33,504 2.8 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Income before income taxes 14,860 4.9 74,974 6.4 10,181 3.5 308 0.1 466,142 38.9 Income tax expense 1,595 0.5 17,786 1.5 8,041 2.8 5,260 1.6 89,420 7.5 -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Net income (loss) $ 13,265 4.4 $ 57,188 4.9 $ 2,140 0.7 $ (4,952) (1.5) $ 376,722 31.5 ======== ======== =========== ====== =========== ======= =========== ====== ================== Deemed dividend related to beneficial conversion feature of preferred stock - - (25,680) (2.2) - - - - - - Preferred stock dividends (125) (0.0) (416) (0.0) (125) (0.0) (91) (0.0) (466) (0.0) Allocation of earnings to preferred stockholders - - (274) (0.0) (21) (0.0) - - (3,667) (0.3) -------- -------- ----------- ------ ----------- ------- ----------- ------ ------------------ Net income (loss) available to common stockholders - basic $ 13,140 4.4 $ 30,818 2.6 $ 1,994 0.7 $ (5,043) (1.6) $ 372,589 31.1 ======== ======== =========== ====== =========== ======= =========== ====== ================== Net income (loss) available to common stockholders - diluted $ 14,758 4.9 $ 30,818 2.6 $ 1,910 0.7 $ (5,043) (1.6) $ 378,159 31.6 ======== ======== =========== ====== =========== ======= =========== ====== ================== Net income (loss) per common share: Basic $ 0.03 $ 0.08 $ 0.01 $ (0.01) $ 0.98 Diluted $ 0.03 $ 0.08 $ 0.00 $ (0.01) $ 0.86 ======== =========== =========== =========== =========== Weighted average shares: Basic 376,367 381,100 380,242 382,279 379,499 Diluted 438,317 390,879 385,377 382,279 440,585 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 Fiscal Year Revenue by solution Q4 2004 % 2004 % Q3 2005 % Q4 2005 % 2005 % ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- IT software and solutions Identity-driven computing Identity management and web services $ 28,288 9.4 $ 101,531 8.7 $ 27,397 9.4 $ 33,608 10.5 $ 113,582 9.5 Resource management 33,602 11.2 124,337 10.7 32,881 11.3 50,180 15.7 144,367 12.1 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Total identity-driven computing 61,890 20.6 225,868 19.4 60,278 20.8 83,788 26.2 257,949 21.5 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Cross platform services Linux and platform services 84,795 28.2 349,593 30.0 79,807 27.5 87,044 27.2 328,622 27.4 Collaboration and other products 32,101 10.7 123,544 10.6 27,171 9.4 33,597 10.5 116,524 9.7 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Total cross platform services 116,897 38.9 473,137 40.6 106,978 36.9 120,641 37.7 445,146 37.2 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Total software licenses and maintenance 178,787 59.5 699,005 60.0 167,256 57.6 204,429 63.8 703,095 58.7 Global services 82,689 27.5 304,848 26.1 85,126 29.3 83,189 26.0 336,128 28.1 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Total IT software and solutions 261,476 87.0 1,003,853 86.1 252,382 87.0 287,618 89.8 1,039,223 86.8 Celerant consulting 39,181 13.0 162,064 13.9 37,832 13.0 32,685 10.2 158,473 13.2 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Total net revenue by solution $ 300,657 100.0 $ 1,165,917 100.0 $ 290,214 100.0 $ 320,303 100.0 $ 1,197,696 100.0 ============= ======= ============= ======== ============= ======= ============= ======== ============= ======== Revenue by segment North America $ 132,824 44.2 $ 514,477 44.1 $ 129,886 44.8 $ 134,629 42.0 $ 513,497 42.9 EMEA 99,197 33.0 378,273 32.4 92,633 31.9 120,770 37.7 407,998 34.1 Asia Pacific 15,482 5.1 61,774 5.3 17,019 5.9 15,559 4.9 61,430 5.1 Latin America 5,336 1.8 21,026 1.8 5,590 1.9 7,546 2.4 23,701 2.0 Japan 8,637 2.9 28,304 2.4 7,254 2.5 9,114 2.8 32,597 2.7 Celerant Consulting 39,181 13.0 162,063 13.9 37,832 13.0 32,685 10.2 158,473 13.2 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Total net revenue by segment $ 300,657 100.0 $ 1,165,917 100.0 $ 290,214 100.0 $ 320,303 100.0 $ 1,197,696 100.0 ============= ======= ============= ======== ============= ======= ============= ======== ============= ======== Linux platform revenue (included in above amounts) Open Enterprise Server $ - - $ - - $ 30,964 65.4 $ 46,540 75.8 $ 85,332 57.6 Other Linux platform revenue 11,848 100.0 39,168 100.0 16,352 34.6 14,827 24.2 62,766 42.4 ------------- ------- ------------- -------- ------------- ------- ------------- -------- ------------- -------- Total Linux platform revenue $ 11,848 100.0 $ 39,168 100.0 $ 47,316 100.0 $ 61,367 100.0 $ 148,098 100.0 ============= ======= ============= ======== ============= ======= ============= ======== ============= ======== Certain reclassifications were made to the prior period amounts in order to conform to the current period's presentation. The $13.5 million Q3 2004 payment from The Canopy Group, Inc. is recorded in Linux and 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 Fiscal Year Q4 2004 % 2004 % Q3 2005 % Q4 2005 % 2005 % ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- IT software and solutions Identity-driven computing Identity management and web services Software licenses $ 12,016 4.0 $ 40,545 3.5 $ 8,647 3.0 $ 17,059 5.3 $ 43,400 3.6 Maintenance and services 16,272 5.4 60,986 5.2 18,750 6.5 16,549 5.2 70,182 5.9 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- 28,288 9.4 101,531 8.7 27,397 9.4 33,608 10.5 113,582 9.5 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Resource management Software licenses 11,242 3.7 40,505 3.5 8,195 2.8 24,225 7.6 46,529 3.9 Maintenance and services 22,360 7.4 83,832 7.2 24,686 8.5 25,955 8.1 97,838 8.2 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- 33,602 11.2 124,337 10.7 32,881 11.3 50,180 15.7 144,367 12.1 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Cross platform services Linux and platform services Software licenses 25,457 8.5 107,698 9.2 20,667 7.1 24,844 7.8 87,207 7.3 Maintenance and services 59,338 19.7 241,895 20.7 59,140 20.4 62,200 19.4 241,415 20.2 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- 84,795 28.2 349,593 30.0 79,807 27.5 87,044 27.2 328,622 27.4 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Collaboration and other products Software licenses 13,278 4.4 45,289 3.9 8,119 2.8 11,984 3.7 36,666 3.1 Maintenance and services 18,823 6.3 78,255 6.7 19,052 6.6 21,613 6.7 79,858 6.7 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- 32,101 10.7 123,544 10.6 27,171 9.4 33,597 10.5 116,524 9.7 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Total software, licenses and maintenance Software licenses 61,994 20.6 234,037 20.1 45,628 15.7 78,111 24.4 213,803 17.9 Maintenance and services 116,793 38.8 464,968 39.9 121,628 41.9 126,318 39.4 489,292 40.9 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- 178,787 59.5 699,005 60.0 167,256 57.6 204,429 63.8 703,095 58.7 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Global services 82,689 27.5 304,848 26.1 85,126 29.3 83,189 26.0 336,128 28.1 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Total IT software and solutions Software licenses 61,994 20.6 234,037 20.1 45,628 15.7 78,111 24.4 213,803 17.9 Maintenance and services 199,483 66.3 769,816 66.0 206,754 71.2 209,507 65.4 825,420 68.9 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- 261,476 87.0 1,003,853 86.1 252,382 87.0 287,618 89.8 1,039,223 86.8 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Celerant consulting 39,181 13.0 162,064 13.9 37,832 13.0 32,685 10.2 158,473 13.2 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Total net revenue Software licenses 61,994 20.6 234,037 20.1 45,628 15.7 78,111 24.4 213,803 17.9 Maintenance and services 238,663 79.4 931,880 79.9 244,586 84.3 242,192 75.6 983,893 82.1 ------------- -------- -------------- -------- ------------- -------- ------------- -------- -------------- -------- Total net revenue $ 300,657 100.0 $ 1,165,917 100.0 $ 290,214 100.0 $ 320,303 100.0 $ 1,197,696 100.0 ============= ======== ============== ======== ============= ======== ============= ======== ============== ======== Certain reclassifications were made to the prior period amounts in order to conform to the current period's presentation. The $13.5 million Q3 2004 payment from The Canopy Group, Inc. is recorded in Linux and Platform Services as maintenance and services revenue.
Novell, Inc. Major IT Software and Solutions Included Within Reported Line Items Identity-Driven Computing Identity Management and 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 and Platform Services > Open Enterprise Server > SUSE LINUX Enterprise Server > SUSE LINUX Professional > NetWare > Small Business Suite > Cluster Services Collaboration and Other Products > GroupWise > Novell Linux Desktop > Other Products Global Services > IT Consulting Services > Technical Support Services > Training Services --------------------------------------------------------------------------------------------------- Linux Platform Revenue > Open Enterprise Server > SUSE LINUX Enterprise Server > SUSE LINUX Professional > Novell Linux Desktop > ZENworks Linux Management (Red Carpet) > Technical Support Services (related to Linux Platform products)