Exhibit 99.1
FOR IMMEDIATE RELEASE
March 2, 2006
Novell Reports Financial Results for First Fiscal Quarter 2006
Year-Over-Year Results Show Continued Improvement Led By Product Revenue Growth
WALTHAM, Mass. – March 2, 2006 — Novell, Inc. (NASDAQ:NOVL) today announced financial results for its first fiscal quarter ended January 31, 2006. For the quarter, Novell reported revenue of $274 million, compared to revenue of $290 million for the first fiscal quarter 2005. Net income available to common stockholders in the first fiscal quarter 2006 was $2 million or $0.00 per diluted common share. This compared to net income available to common stockholders of $392 million, or $0.90 per diluted common share, for the first fiscal quarter 2005, which included a $448 million net gain related to the settlement with Microsoft in that quarter.
On a non-GAAP basis, adjusted net income available to common stockholders for the first fiscal quarter 2006 was $18 million, or $0.04 per diluted common share, excluding stock-based compensation expense, the benefit from restructuring reversals 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 first fiscal quarter 2005 of $10 million, or $0.03 per diluted common share, excluding the gain from the legal settlement with Microsoft, restructuring expenses, a gain on a sale of property, long-term investment impairments, and adjustments for income taxes, debt interest expense and the allocation of earnings to preferred stockholders.
In the first fiscal quarter 2006, foreign currency exchange rates unfavorably impacted total revenue by approximately $7 million year-over-year. Foreign currency exchange rates favorably impacted net income by $1 million year-over-year.
During the first fiscal quarter 2006, Novell recognized total Open Platform Solutions revenue of $56 million, which was up from $14 million in the year ago period. Total Open Platform Solutions included $43 million from sales of Open Enterprise Server (OES) and $13 million of revenue from other Linux* Platform Products and Other Open Platform Products. The year ago period did not include revenue from OES as it was introduced in the second fiscal quarter of 2005.
During the first fiscal quarter 2006, Novell recognized $63 million of Systems, Security and Identity Management revenue, up 20% year-over-year.
Also in the first fiscal quarter 2006, revenue from OES and NetWare-related products declined 11% from the year ago period.
Please refer to the financial schedules that are a part of this press release for a description of new solution revenue categories.
“We are pleased with the continued improvement in the core business this quarter, ” said Jack Messman, Chairman and CEO of Novell. “Our growth businesses of Linux, Identity and Resource Management are performing well, and we believe we will continue to see growth throughout the fiscal year. ”
Cash, cash equivalents and short-term investments were $1.7 billion at January 31, 2006, consistent with last quarter. Days sales outstanding in accounts receivable was 59 days at the end of the first fiscal quarter 2006, consistent with the year ago quarter. Deferred revenue was $367 million at the end of the first fiscal quarter 2006, up $24 million or 7% from the prior year. Cash flow from operations was $25 million for the first fiscal quarter 2006, up from $4 million in the first fiscal quarter 2005, excluding the Microsoft settlement payment.
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.
Financial Outlook
Novell management provided the following financial guidance:
- Net revenue for the second fiscal quarter 2006 is expected to be between $272 million and $282 million.
- On a non-GAAP basis, net income per diluted common share for the second fiscal quarter 2006 is expected to be between $0.02 and $0.03, excluding an estimated $0.02 per share expense from stock-based compensation.
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 March 2, 2006, 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, March 16. 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 4945003.
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 and Access Management and Open 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission on January 10, 2006. 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.
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Novell is a registered trademark, 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 -------------------------------------- Jan 31, 2006 Jan 31, 2005 ---------------- ---------------- Net revenue Software licenses $ 42,102 $ 44,296 Maintenance and services 232,306 245,832 ---------------- ---------------- Total net revenue 274,408 290,128 ---------------- ---------------- Cost of revenue Software licenses 4,297 4,632 Maintenance and services 96,965 107,419 ---------------- ---------------- Total cost of revenue 101,262 112,051 ---------------- ---------------- Gross profit 173,146 178,077 ---------------- ---------------- Operating expenses Sales and marketing 94,153 95,244 Product development 44,117 47,758 General and administrative 35,454 28,240 Restructuring expenses (1,064) 6,419 Gain on sale of property, plant and equipment - (1,589) Gain on settlement of potential litigation - (447,560) ---------------- ---------------- Total operating expenses 172,660 (271,488) ---------------- ---------------- Income from operations 486 449,565 Other income, net 12,702 5,035 ---------------- ---------------- Income before income taxes 13,188 454,600 Income tax expense 11,323 59,439 ---------------- ---------------- Net income $ 1,865 $ 395,161 ================ ================ Net income available to common stockholders - basic $ 1,811 $ 390,891 ================ ================ Net income available to common stockholders - diluted $ 1,811 $ 392,384 ================ ================ Net income per common share: Basic $ 0.00 $ 1.04 Diluted $ 0.00 $ 0.90 Weighted average shares: Basic 385,787 377,257 Diluted 394,534 435,467 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. The first fiscal quarter 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. Stock-based compensation expense recorded in above amounts: Fiscal Quarter Ended -------------------------------------- Jan 31, 2006 Jan 31, 2005 ---------------- ---------------- Cost of revenue $ 1,062 $ 1 Sales and marketing 3,532 134 Product development 2,637 324 General and administrative 6,464 - ---------------- ---------------- Total stock-based compensation expense $ 13,695 $ 459 ================ ================
Novell, Inc. Consolidated Unaudited Condensed Balance Sheets (In thousands) Jan 31, 2006 Oct 31, 2005 ------------------- ------------------- Assets Current assets Cash and cash equivalents $ 845,128 $ 811,238 Short-term investments 840,462 843,666 Receivables, net 185,251 293,627 Prepaid expenses 34,423 30,777 Other current assets 26,305 29,745 ------------------- ------------------- Total current assets 1,931,569 2,009,053 Property, plant and equipment, net 209,624 212,377 Long-term investments 54,221 54,340 Goodwill 396,676 395,509 Intangible assets, net 39,499 56,421 Deferred income taxes 679 1,384 Other assets 42,797 32,774 ------------------- ------------------- Total assets $2,675,065 $2,761,858 =================== =================== Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 43,602 $ 45,445 Accrued compensation 86,512 113,760 Other accrued liabilities 82,985 131,105 Income taxes payable 58,817 56,869 Deferred revenue 367,451 405,751 ------------------- ------------------- Total current liabilities 639,367 752,930 Deferred income taxes 4,369 4,537 Senior convertible debentures 600,000 600,000 ------------------- ------------------- Total liabilities 1,243,736 1,357,467 Minority interests 2,805 8,555 Preferred stock 9,350 9,350 Stockholders' equity 1,419,174 1,386,486 ------------------- ------------------- Total liabilities and stockholders' equity $2,675,065 $2,761,858 =================== ===================
Novell, Inc. Consolidated Unaudited Condensed Statements of Cash Flows (In thousands) Fiscal Quarter Ended -------------------------------------- Jan 31, 2006 Jan 31, 2005 ----------------- ----------------- Cash flows from operating activities: Net income $ 1,865 $ 395,161 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,511 12,436 Decrease in accounts receivable allowances (2,973) (5,219) Stock-based compensation expense 13,695 459 Tax effects of stock-based compensation plans 4,039 4,260 Excess tax benefits from stock-based compensation (4,039) - Utilization of previously reserved acquired net operating losses 544 29,000 Net gain on sale of property, plant and equipment - (1,589) Net loss on long-term investments 387 1,013 Changes in current assets and liabilities 94 16,126 ----------------- ----------------- Net cash provided by operating activities 25,123 451,647 ----------------- ----------------- Cash flows from financing activities: Issuance of common stock, net 9,876 4,467 Excess tax benefits from stock-based compensation 4,039 - Payment of cash dividends on preferred stock - (250) ----------------- ----------------- Net cash provided by financing activities 13,915 4,217 ----------------- ----------------- Cash flows from investing activities: Purchases of property, plant and equipment (7,603) (5,649) Proceeds from the sale of property, plant and equipment - 10,421 Short-term investment activity 4,474 (111,706) Long-term investment activity (256) (2,247) Cash paid for equity share of Open Invention Network LLC (4,225) - Purchase of intangible assets - (15,500) Other 2,462 6,257 ----------------- ----------------- Net cash used in investing activities (5,148) (118,424) ----------------- ----------------- Increase in cash and cash equivalents 33,890 337,440 Cash and cash equivalents - beginning of period 811,238 434,404 ----------------- ----------------- Cash and cash equivalents - end of period $ 845,128 $ 771,844 ================= ================= 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) Fiscal Quarter Ended ---------------------------------------------- Jan 31, 2006 Jan 31, 2005 -------------------- -------------------- GAAP diluted net income available to common stockholders $ 1,811 $ 392,384 -------------------- -------------------- Pre-income tax adjustments: Microsoft settlement - (447,560) Stock-based compensation expense 13,695 459 Restructuring expenses (1,064) 6,419 Gain on sale of property, plant and equipment - (1,589) Net loss on long-term investments 387 1,013 Income tax adjustments: Tax adjustments, net 1,766 (638) Cumulative tax effect of the Microsoft settlement - 57,260 Diluted net income adjustments: Debt interest expense 1,493 (1,493) Allocation of earnings to preferred and minority stockholders (57) 4,036 -------------------- -------------------- Total net adjustments 16,220 (382,093) Non-GAAP diluted net income available to common stockholders $ 18,031 $ 10,291 ==================== ==================== GAAP diluted net income per common share $ 0.00 $ 0.90 Adjustments detailed above 0.04 (0.87) -------------------- -------------------- Non-GAAP diluted net income per common share $ 0.04 $ 0.03 ==================== ==================== GAAP diluted weighted average shares 394,534 435,467 Change in dilution from assumed: Conversion of convertible debt 52,074 (52,074) Stock option exercises 4,003 - Restricted stock and stock-based compensation changes (771) (851) -------------------- -------------------- Non-GAAP diluted weighted average shares 449,840 382,542 ==================== ==================== 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 Trailing Four Q1 2005 % Q4 2005 % 2005 % Q1 2006 % Quarters % --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Net revenue Software licenses $ 44,296 15.3 $ 78,111 24.4 $ 213,803 17.9 $ 42,102 15.3 $ 211,609 17.9 Maintenance and services 245,832 84.7 242,192 75.6 983,893 82.1 232,306 84.7 970,367 82.1 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Total net revenue 290,128 100.0 320,303 100.0 1,197,696 100.0 274,408 100.0 1,181,976 100.0 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Cost of revenue Software licenses 4,632 1.6 7,630 2.4 21,600 1.8 4,297 1.6 21,264 1.8 Maintenance and services 107,419 37.0 100,088 31.2 421,519 35.2 96,965 35.3 411,066 34.8 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Total cost of revenue 112,051 38.6 107,718 33.6 443,119 37.0 101,262 36.9 432,330 36.6 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Gross profit 178,077 61.4 212,585 66.4 754,577 63.0 173,146 63.1 749,646 63.4 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Operating expenses Sales and marketing 95,244 32.8 100,426 31.4 388,846 32.5 94,153 34.3 387,755 32.8 Product development 47,758 16.5 53,798 16.8 200,630 16.8 44,117 16.1 196,989 16.7 General and administrative 28,240 9.7 31,858 9.9 122,026 10.2 35,454 12.9 129,240 10.9 Restructuring expenses 6,419 2.2 37,951 11.8 59,106 4.9 (1,064) (0.4) 51,623 4.4 Acquired in-process research and development - - - - 480 0.0 - - 480 0.0 Gain on sale of property, plant and equipment (1,589) (0.5) - - (1,589) (0.1) - - - - Gain on settlement of potential litigation (447,560) (154.3) - - (447,560) (37.4) - - - - --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Total operating expenses (271,488) (93.6) 224,033 69.9 321,939 26.9 172,660 62.9 766,087 64.8 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Income (loss) from operations 449,565 155.0 (11,448) (3.6) 432,638 36.1 486 0.2 (16,441) (1.4) --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Other income Investment income 8,440 2.9 13,035 4.1 43,135 3.6 14,592 5.3 49,287 4.2 Other, net (3,405) (1.2) (1,279) (0.4) (9,631) (0.8) (1,890) (0.7) (8,116) (0.7) --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Other income, net 5,035 1.7 11,756 3.7 33,504 2.8 12,702 4.6 41,171 3.5 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Income before income taxes 454,600 156.7 308 0.1 466,142 38.9 13,188 4.8 24,730 2.1 Income tax expense 59,439 20.5 5,260 1.6 89,420 7.5 11,323 4.1 41,304 3.5 --------------- --------- --------------- --------- --------------- -------- --------------- -------- -------------- -------- Net income (loss) $ 395,161 136.2 $ (4,952) (1.5) $ 376,722 31.5 $ 1,865 0.7 $ (16,574) (1.4) =============== ========= =============== ========= =============== ======== =============== ======== ============== ======== Preferred stock dividends (125) (0.0) (91) (0.0) (466) (0.0) (47) (0.0) Allocation of earnings to preferred stockholders (4,145) (1.4) - - (3,667) (0.3) (7) (0.0) --------------- --------- --------------- --------- --------------- -------- --------------- -------- Net income (loss) available to common stockholders - basic $ 390,891 134.7 $ (5,043) (1.6) $ 372,589 31.1 $ 1,811 0.7 =============== ========= =============== ========= =============== ======== =============== ======== Net income (loss) available to common stockholders - diluted $ 392,384 135.2 $ (5,043) (1.6) $ 378,159 31.6 $ 1,811 0.7 =============== ========= =============== ========= =============== ======== =============== ======== Net income (loss) per common share: Basic $ 1.04 $ (0.01) $ 0.98 $ 0.00 Diluted $ 0.90 $ (0.01) $ 0.86 $ 0.00 Weighted average shares: Basic 377,257 382,279 379,499 385,787 Diluted 435,467 382,279 440,585 394,534 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 Q1 2005 % Q4 2005 % 2005 % Q1 2006 % Quarters % ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- IT software and solutions Systems, security and identity management Resource management $ 29,968 10.3 $ 50,180 15.7 $ 144,358 12.1 $ 33,158 12.1 $ 147,548 12.5 Identity and access management 17,855 6.2 22,980 7.2 74,936 6.3 25,548 9.3 82,629 7.0 Other systems, security and identity management products 4,835 1.7 5,624 1.8 21,022 1.8 4,298 1.6 20,485 1.7 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total systems, security and identity management 52,658 18.1 78,784 24.6 240,316 20.1 63,004 23.0 250,662 21.2 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Open platform solutions Open Enterprise Server - - 46,540 14.5 85,331 7.1 43,112 15.7 128,443 10.9 Linux platform products 8,491 2.9 9,829 3.1 35,836 3.0 10,382 3.8 37,727 3.2 Other open platform products 5,541 1.9 4,070 1.3 17,761 1.5 2,745 1.0 14,965 1.3 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total open platform solutions 14,032 4.8 60,439 18.9 138,928 11.6 56,239 20.5 181,135 15.3 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Workspace solutions NetWare and other NetWare-related 68,746 23.7 27,807 8.7 193,549 16.2 18,256 6.7 143,059 12.1 Collaboration 24,340 8.4 28,105 8.8 99,422 8.3 23,676 8.6 98,758 8.4 Other workspace products 5,907 2.0 9,294 2.9 30,842 2.6 5,411 2.0 30,346 2.6 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total workspace solutions 98,993 34.1 65,206 20.4 323,813 27.0 47,343 17.3 272,163 23.0 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total software-related licenses and maintenance 165,683 57.1 204,429 63.8 703,057 58.7 166,586 60.7 703,960 59.6 Global services 80,396 27.7 83,189 26.0 336,166 28.1 75,708 27.6 331,478 28.0 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total IT software and solutions 246,079 84.8 287,618 89.8 1,039,223 86.8 242,294 88.3 1,035,438 87.6 Celerant consulting 44,049 15.2 32,685 10.2 158,473 13.2 32,114 11.7 146,538 12.4 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total net revenue by solution $ 290,128 100.0 $ 320,303 100.0 $ 1,197,696 100.0 $ 274,408 100.0 $ 1,181,976 100.0 ================= ========= ================= ========== ================== ========== ================= ========= ================== =========== Revenue by segment Americas $ 128,982 44.5 $ 142,175 44.4 $ 537,198 44.9 $ 133,777 48.8 $ 541,993 45.9 EMEA 95,551 32.9 120,770 37.7 407,998 34.1 88,836 32.4 401,283 34.0 Asia Pacific 21,546 7.4 24,673 7.7 94,027 7.9 19,681 7.2 92,162 7.8 Celerant Consulting 44,049 15.2 32,685 10.2 158,473 13.2 32,114 11.7 146,538 12.4 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total net revenue by segment $ 290,128 100.0 $ 320,303 100.0 $ 1,197,696 100.0 $ 274,408 100.0 $ 1,181,976 100.0 ================= ========= ================= ========== ================== ========== ================= ========= ================== =========== Open Enterprise Server and NetWare-related revenue Open Enterprise Server $ - - $ 46,540 62.6 $ 85,331 30.6 $ 43,112 70.3 $ 128,443 47.3 NetWare and other NetWare-related 68,746 100.0 27,807 37.4 193,549 69.4 18,256 29.7 143,059 52.7 ----------------- --------- ----------------- ---------- ------------------ ---------- ----------------- --------- ------------------ ----------- Total Open Enterprise Server and NetWare-related revenue $ 68,746 100.0 $ 74,347 100.0 $ 278,881 100.0 $ 61,368 100.0 $ 271,503 100.0 ================= ========= ================= ========== ================== ========== ================= ========= ================== =========== Certain reclassifications were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Unaudited Trended Solutions Revenue by Software Licenses and Maintenance and Services (In thousands) Fiscal Year Trailing Four Q1 2005 % Q4 2005 % 2005 % Q1 2006 % Quarters % ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- IT software and solutions Systems, security and identity management Resource management Software licenses $ 6,952 2.4 $ 24,225 7.6 $ 46,539 3.9 $ 6,372 2.3 $ 45,959 3.9 Maintenance and services 23,016 7.9 25,955 8.1 97,819 8.2 26,786 9.8 101,589 8.6 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 29,968 10.3 50,180 15.7 144,358 12.1 33,158 12.1 147,548 12.5 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Identity and access management Software licenses 7,043 2.4 13,022 4.1 31,714 2.6 11,603 4.2 36,274 3.1 Maintenance and services 10,812 3.7 9,958 3.1 43,222 3.6 13,945 5.1 46,355 3.9 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 17,855 6.2 22,980 7.2 74,936 6.3 25,548 9.3 82,629 7.0 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Other systems, security and identity management products Software licenses 1,663 0.6 2,583 0.8 7,650 0.6 1,114 0.4 7,101 0.6 Maintenance and services 3,172 1.1 3,041 0.9 13,372 1.1 3,184 1.2 13,384 1.1 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 4,835 1.7 5,624 1.8 21,022 1.8 4,298 1.6 20,485 1.7 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Open platform solutions Open Enterprise Server Software licenses - - 16,832 5.3 34,862 2.9 9,983 3.6 44,845 3.8 Maintenance and services - - 29,708 9.3 50,469 4.2 33,129 12.1 83,598 7.1 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- - - 46,540 14.5 85,331 7.1 43,112 15.7 128,443 10.9 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Linux platform products Software licenses - - - - - - - - - - Maintenance and services 8,491 2.9 9,829 3.1 35,836 3.0 10,382 3.8 37,727 3.2 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 8,491 2.9 9,829 3.1 35,836 3.0 10,382 3.8 37,727 3.2 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Other open platform products Software licenses - - 21 0.0 268 0.0 404 0.1 672 0.1 Maintenance and services 5,541 1.9 4,049 1.3 17,493 1.5 2,341 0.9 14,293 1.2 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 5,541 1.9 4,070 1.3 17,761 1.5 2,745 1.0 14,965 1.3 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Workspace solutions NetWare and other NetWare-related Software licenses 20,753 7.2 8,002 2.5 52,248 4.4 6,762 2.5 38,257 3.2 Maintenance and services 47,993 16.5 19,805 6.2 141,301 11.8 11,494 4.2 104,802 8.9 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 68,746 23.7 27,807 8.7 193,549 16.2 18,256 6.7 143,059 12.1 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Collaboration Software licenses 6,171 2.1 8,944 2.8 26,636 2.2 4,891 1.8 25,356 2.1 Maintenance and services 18,169 6.3 19,161 6.0 72,786 6.1 18,785 6.8 73,402 6.2 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 24,340 8.4 28,105 8.8 99,422 8.3 23,676 8.6 98,758 8.4 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Other workspace products Software licenses 1,714 0.6 4,482 1.4 13,886 1.2 973 0.4 13,145 1.1 Maintenance and services 4,193 1.4 4,812 1.5 16,956 1.4 4,438 1.6 17,201 1.5 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 5,907 2.0 9,294 2.9 30,842 2.6 5,411 2.0 30,346 2.6 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Total software-related licenses and maintenance Software licenses 44,296 15.3 78,111 24.4 213,803 17.9 42,102 15.3 211,609 17.9 Maintenance and services 121,387 41.8 126,318 39.4 489,254 40.8 124,484 45.4 492,351 41.7 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 165,683 57.1 204,429 63.8 703,057 58.7 166,586 60.7 703,960 59.6 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Global services 80,396 27.7 83,189 26.0 336,166 28.1 75,708 27.6 331,478 28.0 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Total IT software and solutions Software licenses 44,296 15.3 78,111 24.4 213,803 17.9 42,102 15.3 211,609 17.9 Maintenance and services 201,783 69.5 209,507 65.4 825,420 68.9 200,192 73.0 823,829 69.7 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- 246,079 84.8 287,618 89.8 1,039,223 86.8 242,294 88.3 1,035,438 87.6 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Celerant consulting 44,049 15.2 32,685 10.2 158,473 13.2 32,114 11.7 146,538 12.4 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Total net revenue Software licenses 44,296 15.3 78,111 24.4 213,803 17.9 42,102 15.3 211,609 17.9 Maintenance and services 245,832 84.7 242,192 75.6 983,893 82.1 232,306 84.7 970,367 82.1 ------------------ ---------- ----------------- --------- ------------------ ---------- ----------------- ---------- ----------------- ---------- Total net revenue $ 290,128 100.0 $ 320,303 100.0 $ 1,197,696 100.0 $ 274,408 100.0 $ 1,181,976 100.0 ================== ========== ================= ========= ================== ========== ================= ========== ================= ========== Certain reclassifications were made to the prior period amounts in order to conform to the current period's presentation.
Novell, Inc. Major IT Software and Solutions Included Within Reported Line Items Systems, Security and Identity Management Resource Management > ZENworks Suite > ZENworks Patch Management > ZENworks Asset Management > ZENworks Linux Management (Red Carpet) Identity and Access Management > Identity Manager (DirXML) > SecureLogin > iChain Other Systems, Security and Identity Management Products > Web Services (exteNd) > eDirectory Open Platform Solutions Open Enterprise Server > Open Enterprise Server Linux Platform Products > SUSE LINUX Enterprise Server > Novell Linux Desktop Other Open Platform Products > SUSE LINUX Professional > SUSE Engineering Workspace Solutions NetWare and Other NetWare-Related > NetWare > Small Business Suite > Cluster Services Collaboration > GroupWise Other Workspace Products > BorderManager Global Services > IT Consulting Services > Technical Support Services > Training Services