Exhibit 99.1
FOR IMMEDIATE RELEASE
February 28, 2008
Novell Reports Financial Results for First Fiscal Quarter 2008
• Product revenue grew 9% year-over-year
• Achieved non-GAAP operating margin of 10%
WALTHAM, Mass. – February 28, 2008 – Novell, Inc. (NASDAQ:NOVL) today announced financial results for its first fiscal quarter ended January 31, 2008. For the quarter, Novell reported net revenue of $231 million. This compares to net revenue of $218 million for the first fiscal quarter 2007. Income from operations for the first fiscal quarter 2008 was $8 million, compared to a loss from operations of $21 million for the first fiscal quarter 2007. Income from continuing operations in the first fiscal quarter 2008 was $15 million, or $0.04 per share. This compares to a loss from continuing operations of $12 million, or $0.04 loss per share, for the first fiscal quarter 2007. Foreign currency exchange rates favorably impacted revenue and unfavorably impacted operating expenses by $7 million and did not materially impact income from operations year-over-year.
On a non-GAAP basis, income from operations for the first fiscal quarter 2008 was $24 million. This compares to non-GAAP loss from operations of $1 million in the year-ago quarter. Non-GAAP income from continuing operations for the first fiscal quarter 2008 was $29 million, or $0.08 per share. This compares to non-GAAP income from continuing operations of $3 million, or $0.01 per share, for the first fiscal quarter 2007.
For the first fiscal quarter 2008, Novell reported $30 million of revenue from Open Platform Solutions of which $28 million was from Linux* Platform Products, up 65% year-over-year. Revenue from Identity and Security Management was $32 million of which Identity and Access Management was $28 million, up 15% year-over-year. Revenue from Systems and Resource Management was $37 million, up 5% year-over-year. Workgroup revenue of $90 million was up 1% year-over-year.
“We are very pleased with our results this quarter. We delivered product revenue growth across all business units and continued expense control this quarter,” said Ron Hovsepian, President and CEO of Novell. “These results are indicative that our strategic initiatives are yielding tangible results and that we are on the right path to achieve long-term, sustainable profitability.”
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Cash, cash equivalents and short-term investments were $1.8 billion at January 31, 2008, consistent with the year-ago quarter. Days sales outstanding in accounts receivable was 51 days at the end of the first fiscal quarter 2008, down from 57 days at the end of the year-ago quarter. Total deferred revenue was $723 million at the end of the first fiscal quarter 2008, down from $728 million at the end of the year-ago quarter. Cash flow from operations was a negative $26 million for the first fiscal quarter 2008 which includes $31 million in special interest and restructuring payments. This compares to cash flow from operations of $348 million in the first fiscal quarter 2007 which includes the $348 million payment from Microsoft and $8 million in special interest payments.
Full details on Novell's reported results, including a reconciliation of the non-GAAP results, are included in the financial schedules that are a part of this release.
Financial Outlook
As a result of our acquisition of PlateSpin and our first fiscal quarter 2008 performance, Novell® management issues the following financial guidance:
For the full fiscal year 2008:
- Net revenue is expected to be between $940 million and $970 million exceeding previously stated guidance of between $920 million and $945 million.
- Non-GAAP operating margin is expected to be between 7% and 9%, excluding all acquisition-related intangible asset amortization.
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 February 28, 2008, 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 Novell Web site approximately two hours after its conclusion and will remain on the Web site until March 14, 2008. The call will also be available for telephone playback through midnight ET, March 14, 2008. 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 33480646.
A copy of this press release is posted on Novell's Web site at:
http://www.novell.com/company/ir/qresults/.
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Non-GAAP Financial MeasuresWe supplement our consolidated unaudited condensed financial statements presented in accordance with GAAP with certain non-GAAP financial measures. These non-GAAP measures include adjusted income (loss) from operations, operating margin, income from continuing operations, net income, income per share from continuing operations and net income per share both of which are based on an adjusted number of diluted weighted average shares. We provide non-GAAP financial measures to enhance an overall understanding of our current financial performance and prospects for the future and enable investors to evaluate our performance in the same way that management does. Management uses these same non-GAAP financial measures to evaluate performance, allocate resources, and determine bonuses. The non-GAAP financial measures do not replace the presentation of our GAAP financial results, but they eliminate expenses and gains that are unusual, that are excluded from analysts' consensus estimates, and/or that arise outside of the ordinary course of business, such as, but not limited to, stock-based compensation expenses, restructuring expenses, asset impairments, litigation judgments and settlements, the write-off of acquired in-process research and development, and gains (losses) on the sale of business operations, long-term investments, and property, plant and equipment.
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” within the meaning of the Private Securities Litigation Reform Act, including those related to future financial and operating results, future opportunities, the benefits and synergies of the company's brands, strategies and acquisitions, and the growth of the market for Linux Platform Products, Identity and Access Management, and Systems and Resource Management. 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 completion of announced acquisitions, Novell's ability to transform its business through the implementation of its strategic plan, Novell's ability to realize the benefits anticipated from the Microsoft transaction and other transactions, Novell's ability to realize the benefits anticipated from its restructuring plan, and the expected charges to be incurred and payments to be made under the restructuring plan, Novell's ability to achieve its expense targets, Novell's success in executing its Linux Platform Products, Identity and Access Management, and Systems and Resource Management strategies, Novell's ability to take a competitive position in the Linux Platform Products, Identity and Access Management, and Systems 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, Novell's ability to integrate acquired operations and employees, and the other factors described in Novell's Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 21, 2007. 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 except as required by the securities laws.
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About Novell
Novell, Inc. (Nasdaq: NOVL) delivers infrastructure software for the Open Enterprise. Novell is a leader in desktop to data center operating systems based on Linux and the software required to secure and manage mixed IT environments. Novell helps customers around the world minimize cost, complexity and risk, allowing them to focus on innovation and growth. For more information, visitwww.novell.com.
_________________
* 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:
Susan Walker White
Novell, Inc.
Phone: 800-317-3195
E-Mail: swhite@novell.com
Page 5 of 11 Novell, Inc. Consolidated Unaudited Condensed Statements of Operations (In thousands, except per share data) Fiscal Quarter Ended ------------------------------------ Jan 31, 2008 Jan 31, 2007 ---------------- --------------- Net revenue: Software licenses $ 40,431 $ 38,553 Maintenance and subscriptions 149,183 134,671 Services (1) 41,312 45,162 ---------------- --------------- Total net revenue 230,926 218,386 ---------------- --------------- Cost of revenue: Software licenses 3,265 4,227 Maintenance and subscriptions 11,640 11,655 Services 43,634 48,565 ---------------- --------------- Total cost of revenue 58,539 64,447 ---------------- --------------- Gross profit 172,387 153,939 ---------------- --------------- Operating expenses: Sales and marketing 86,605 90,101 Product development 46,058 46,467 General and administrative 26,876 24,883 Other operating expenses (2) 4,367 13,104 ---------------- --------------- Total operating expenses 163,906 174,555 Income (loss) from operations 8,481 (20,616) Operating margin % 3.7% -9.4% Other income, net 17,156 18,033 ---------------- --------------- Income from continuing operations, before income taxes 25,637 (2,583) Income tax expense 10,953 9,586 ---------------- --------------- Income (loss) from continuing operations 14,684 (12,169) Income (loss) from discontinued operations, before income taxes 1,285 (10,690) Income tax benefit on discontinued operations (836) (2,914) ---------------- --------------- Income (loss) from discontinued operations 2,121 (7,776) Net income (loss) $ 16,805 $ (19,945) ================ =============== Income (loss) per share: Continuing operations $ 0.04 $ (0.04) Net income (loss) $ 0.05 $ (0.06) Weighted average shares 353,047 345,522 (1) Services includes professional services, technical support and training services. (2) See Page 8 of 11 for a detail of other operating expenses. Reclassifications, none of which affected net income (loss), were made to prior period amounts in order to conform to the current period's presentation.
Page 6 of 11 Novell, Inc. Consolidated Unaudited Condensed Balance Sheets (In thousands) Jan 31, 2008 Oct 31, 2007 -------------------- ------------------- Assets Current assets: Cash and cash equivalents $1,038,621 $1,079,819 Short-term investments 728,788 777,818 Restricted cash 51,495 - Receivables, net 133,606 208,318 Prepaid expenses 68,742 53,316 Other current assets 32,263 35,065 -------------------- ------------------- Total current assets 2,053,515 2,154,336 Property, plant and equipment, net 177,082 180,537 Long-term investments 58,643 37,304 Goodwill 399,581 404,612 Intangible assets, net 32,030 33,572 Deferred income taxes 22,027 14,518 Other assets 28,660 29,515 -------------------- ------------------- Total assets $2,771,538 $2,854,394 ==================== =================== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 34,247 $ 45,135 Accrued compensation 71,066 112,794 Other accrued liabilities 94,624 122,850 Income taxes payable 49,633 46,724 Deferred revenue 463,605 494,615 -------------------- ------------------- Total current liabilities 713,175 822,118 Deferred income taxes - 884 Long-term deferred revenue 259,537 273,066 Senior convertible debentures 600,000 600,000 -------------------- ------------------- Total liabilities 1,572,712 1,696,068 Stockholders' equity 1,198,826 1,158,326 -------------------- ------------------- Total liabilities and stockholders' equity $2,771,538 $2,854,394 ==================== ===================
Page 7 of 11 Novell, Inc. Consolidated Unaudited Condensed Statements of Cash Flows (In thousands) Fiscal Quarter Ended ------------------------------------ Jan 31, 2008 Jan 31, 2007 ---------------- ---------------- Cash flows from operating activities Net income (loss) $ 16,805 $ (19,945) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Stock-based compensation expense 10,767 6,499 Depreciation and amortization 9,000 11,164 Change in accounts receivable allowances (363) 773 Utilization of previously reserved acquired net operating losses 5,002 2,471 Gain on long-term investments - (1,738) Gain on sale of venture capital funds - (3,591) (Gain) loss on discontinued operations, before taxes (1,180) 10,848 Changes in current assets and liabilities, excluding the effect of acquisitions and dispositions (66,317) 341,047 ---------------- ---------------- Net cash (used in) provided by operating activities (26,286) 347,528 ---------------- ---------------- Cash flows from financing activities Issuance of common stock, net 2,582 7,385 Excess tax effects from stock-based compensation 9,680 1,986 Payment of cash dividends on Series B Preferred Stock - (5) ---------------- ---------------- Net cash provided by financing activities 12,262 9,366 ---------------- ---------------- Cash flows from investing activities Purchases of property, plant and equipment (5,859) (4,958) Short-term investment activity 34,518 132 Long-term investment activity - 1,738 Cash restricted due to litigation (51,495) - Cash divested as a result of Swiss-based consulting unit disposition (3,417) - Proceeds from sale of venture capital funds - 4,964 Cash paid for acquisition of RedMojo, net of cash acquired - (9,727) Other (921) 648 ---------------- ---------------- Net cash used in investing activities (27,174) (7,203) ---------------- ---------------- Increase (decrease) in cash and cash equivalents (41,198) 349,691 Cash and cash equivalents - beginning of period 1,079,819 675,787 ---------------- ---------------- Cash and cash equivalents - end of period $ 1,038,621 $ 1,025,478 ================ ================
Page 8 of 11 Novell, Inc. Unaudited Non-GAAP Adjusted Income From Operations (In thousands, except per share data) Fiscal Quarter Ended ---------------------------------- Jan 31, 2008 Jan 31, 2007 --------------- --------------- GAAP income (loss) from operations $ 8,481 $ (20,616) --------------- --------------- Stock-based compensation expense adjustments: Cost of revenue 1,308 1,047 Sales and marketing 3,417 1,860 Product development 3,004 2,151 General and administrative 3,038 1,441 --------------- --------------- Sub-total 10,767 6,499 --------------- --------------- Other operating expenses (income) adjustments: Restructuring expenses 4,367 7,344 Litigation-related income - (543) Stock-based compensation review expenses - 6,303 --------------- --------------- Sub-total 4,367 13,104 --------------- --------------- Total operating adjustments 15,134 19,603 Non-GAAP income (loss) from operations $ 23,615 $ (1,013) =============== =============== Operating margin % 10.2% -0.5%
Novell, Inc. Unaudited Non-GAAP Adjusted Net Income (In thousands, except per share data) Fiscal Quarter Ended ---------------------------------- Jan 31, 2008 Jan 31, 2007 --------------- --------------- GAAP net income (loss) $ 16,805 $ (19,945) --------------- --------------- Operating adjustments (detailed above) 15,134 19,603 --------------- --------------- Non-operating expenses (income) adjustments: Gain on sale of venture capital funds - (3,591) Gain on long-term investments - (1,738) --------------- --------------- Sub-total - (5,329) --------------- --------------- Total pre-tax adjustments 15,134 14,274 Income tax adjustments (537) 1,106 Income (loss) from discontinued operations, net of taxes (2,121) 7,776 --------------- --------------- Total net adjustments 12,476 23,156 Non-GAAP net income and non-GAAP income from continuing operations $ 29,281 $ 3,211 =============== =============== GAAP net income (loss) per share $ 0.05 $ (0.06) Total adjustments detailed above 0.03 0.07 --------------- --------------- Non-GAAP net income per share and non-GAAP income from continuing operations per share $ 0.08 $ 0.01 =============== =============== GAAP weighted average shares 353,047 345,522 Assumed dilution from stock option exercises 3,022 4,228 --------------- --------------- Non-GAAP weighted average shares 356,069 349,750 =============== =============== Revisions were made to prior period amounts in order to conform to the current period's presentation.
Page 9 of 11 Novell, Inc. Consolidated Unaudited Condensed Segment Results (in thousands, except per share data) Fiscal Quarter Ended January 31, 2008 --------------------------------------------------------------------------------------------------------------- Identity Systems Open Platform and Security and Resource Common Solutions % Management % Management % Workgroup % Unallocated Total % ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Net revenue: Software licenses $ - - $ 12,618 26.8 $ 8,171 18.9 $ 19,642 18.9 $ - $ 40,431 17.5 Maintenance and subscriptions 30,046 81.6 19,710 41.9 28,866 66.6 70,561 68.0 - 149,183 64.6 Services 6,753 18.4 14,702 31.3 6,302 14.5 13,555 13.1 - 41,312 17.9 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total net revenue 36,799 100.0 47,030 100.0 43,339 100.0 103,758 100.0 - 230,926 100.0 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Cost of revenue: Software licenses - - 1,360 2.9 908 2.1 969 0.9 28 3,265 1.4 Maintenance and subscriptions 2,723 7.4 2,125 4.5 3,209 7.4 3,480 3.4 103 11,640 5.0 Services 8,769 23.8 16,207 34.5 4,503 10.4 12,978 12.5 1,177 43,634 18.9 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total cost of revenue 11,492 31.2 19,692 41.9 8,620 19.9 17,427 16.8 1,308 58,539 25.3 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Gross profit 25,307 68.8 27,338 58.1 34,719 80.1 86,331 83.2 (1,308) 172,387 74.7 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Operating expenses: Sales and marketing - - - - - - - - 86,605 86,605 37.5 Product development 14,280 38.8 11,681 24.8 8,281 19.1 8,812 8.5 3,004 46,058 19.9 General and administrative - - - - - - - - 26,876 26,876 11.6 Other operating expenses - - - - - - - - 4,367 4,367 1.9 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total operating expenses 14,280 38.8 11,681 24.8 8,281 19.1 8,812 8.5 120,852 163,906 71.0 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Income (loss) from operations $ 11,027 30.0 $ 15,657 33.3 $ 26,438 61.0 $ 77,519 74.7 $(122,160) $ 8,481 3.7 ========== ====== =========== ===== ========== ===== ========== ====== =========== =========== ===== Fiscal Quarter Ended October 31, 2007 --------------------------------------------------------------------------------------------------------------- Identity Systems Open Platform and Security and Resource Common Solutions % Management % Management % Workgroup % Unallocated Total % ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Net revenue: Software licenses $ - - $ 14,896 27.2 $ 10,398 22.8 $ 25,743 23.0 $ - $ 51,037 20.8 Maintenance and subscriptions 26,272 80.2 20,191 36.9 28,744 63.0 71,901 64.3 - 147,108 60.1 Services 6,490 19.8 19,635 35.9 6,508 14.3 14,158 12.7 - 46,791 19.1 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total net revenue 32,762 100.0 54,722 100.0 45,650 100.0 111,802 100.0 - 244,936 100.0 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Cost of revenue: Software licenses - - 2,781 5.1 1,271 2.8 1,653 1.5 - 5,705 2.3 Maintenance and subscriptions 2,412 7.4 3,301 6.0 3,107 6.8 3,981 3.6 48 12,849 5.2 Services 7,607 23.2 18,917 34.6 4,381 9.6 14,119 12.6 1,136 46,160 18.8 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total cost of revenue 10,019 30.6 24,999 45.7 8,759 19.2 19,753 17.7 1,184 64,714 26.4 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Gross profit 22,743 69.4 29,723 54.3 36,891 80.8 92,049 82.3 (1,184) 180,222 73.6 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Operating expenses: Sales and marketing - - - - - - - - 84,327 84,327 34.4 Product development 13,927 42.5 15,134 27.7 10,576 23.2 12,902 11.5 2,595 55,134 22.5 General and administrative - - - - - - - - 29,527 29,527 12.1 Other operating expenses - - - - - - - - 24,525 24,525 10.0 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total operating expenses 13,927 42.5 15,134 27.7 10,576 23.2 12,902 11.5 140,974 193,513 79.0 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Income (loss) from operations $ 8,816 26.9 $ 14,589 26.7 $ 26,315 57.6 $ 79,147 70.8 $(142,158) $ (13,291) (5.4) ========== ====== =========== ===== ========== ===== ========== ====== =========== =========== ===== Fiscal Quarter Ended January 31, 2007 --------------------------------------------------------------------------------------------------------------- Identity Systems Open Platform and Security and Resource Common Solutions % Management % Management % Workgroup % Unallocated Total % ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Net revenue: Software licenses $ 194 0.8 $ 11,559 24.3 $ 7,502 17.7 $ 19,298 18.4 $ - $ 38,553 17.7 Maintenance and subscriptions 18,660 79.0 18,045 37.9 27,655 65.4 70,311 67.0 - 134,671 61.7 Services 4,774 20.2 17,947 37.7 7,136 16.9 15,305 14.6 - 45,162 20.7 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total net revenue 23,628 100.0 47,551 100.0 42,293 100.0 104,914 100.0 - 218,386 100.0 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Cost of revenue: Software licenses 25 0.1 2,229 4.7 777 1.8 1,177 1.1 19 4,227 1.9 Maintenance and subscriptions 2,184 9.2 2,906 6.1 2,586 6.1 3,945 3.8 34 11,655 5.3 Services 6,282 26.6 20,478 43.1 5,304 12.5 15,507 14.8 994 48,565 22.2 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total cost of revenue 8,491 35.9 25,613 53.9 8,667 20.5 20,629 19.7 1,047 64,447 29.5 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Gross profit 15,137 64.1 21,938 46.1 33,626 79.5 84,285 80.3 (1,047) 153,939 70.5 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Operating expenses: Sales and marketing - - - - - - - - 90,101 90,101 41.3 Product development 11,814 50.0 14,347 30.2 6,953 16.4 11,202 10.7 2,151 46,467 21.3 General and administrative - - - - - - - - 24,883 24,883 11.4 Other operating expenses - - - - - - - - 13,104 13,104 6.0 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Total operating expenses 11,814 50.0 14,347 30.2 6,953 16.4 11,202 10.7 130,239 174,555 79.9 ---------- ------ ----------- ----- ---------- ----- ---------- ------ ----------- ----------- ----- Income (loss) from operations $ 3,323 14.1 $ 7,591 16.0 $ 26,673 63.1 $ 73,083 69.7 $(131,286) $ (20,616) (9.4) ========== ====== =========== ===== ========== ===== ========== ====== =========== =========== ===== Reclassifications, none of which affected net income (loss), were made to the prior period amounts in order to conform to the current period's presentation.
Page 10 of 11 Novell, Inc. Unaudited Trended Segment Revenue by Software Licenses and Maintenance and Services (In thousands) Fiscal Year Change from Q1 2007 % Q4 2007 % 2007 % Q1 2008 % Q1 2008 to Q4 2007 Q1 2008 to Q1 2007 ---------- ----- ---------- ------ ---------- ----- ---------- ------ ------------------ ----------------- Open platform solutions Linux platform products Software licenses $ - - $ - - $ - - $ - - $ - - $ - - Maintenance and subscriptions 16,881 7.7 25,122 10.3 87,391 9.4 27,890 12.1 2,768 11.0 11,009 65.2 ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 16,881 7.7 25,122 10.3 87,391 9.4 27,890 12.1 2,768 11.0 11,009 65.2 Other open platform products Software licenses 194 0.1 - - 197 0.0 - - - - (194) (100.0) Maintenance and subscriptions 1,779 0.8 1,150 0.5 6,453 0.7 2,156 0.9 1,006 87.5 377 21.2 ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 1,973 0.9 1,150 0.5 6,650 0.7 2,156 0.9 1,006 87.5 183 9.3 Total open platform solutions 18,854 8.6 26,272 10.7 94,041 10.1 30,046 13.0 3,774 14.4 11,192 59.4 Identity and security management Identity and access management Software licenses 10,371 4.7 14,289 5.8 46,349 5.0 11,866 5.1 (2,423) (17.0) 1,495 14.4 Maintenance and subscriptions 14,410 6.6 17,034 7.0 61,520 6.6 16,613 7.2 (421) (2.5) 2,203 15.3 ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 24,781 11.3 31,323 12.8 107,869 11.6 28,479 12.3 (2,844) (9.1) 3,698 14.9 Other identity and security management Software licenses 1,188 0.5 607 0.2 4,157 0.4 752 0.3 145 23.9 (436) (36.7) Maintenance and subscriptions 3,635 1.7 3,157 1.3 13,657 1.5 3,097 1.3 (60) (1.9) (538) (14.8) ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 4,823 2.2 3,764 1.5 17,814 1.9 3,849 1.7 85 2.3 (974) (20.2) Total identity and security management 29,604 13.6 35,087 14.3 125,683 13.5 32,328 14.0 (2,759) (7.9) 2,724 9.2 Systems and resource management Software licenses 7,502 3.4 10,398 4.2 35,234 3.8 8,171 3.5 (2,227) (21.4) 669 8.9 Maintenance and subscriptions 27,655 12.7 28,744 11.7 112,510 12.1 28,866 12.5 122 0.4 1,211 4.4 Total systems and resource management 35,157 16.1 39,142 16.0 147,744 15.8 37,037 16.0 (2,105) (5.4) 1,880 5.3 Workgroup Open Enterprise Server Software licenses 8,317 3.8 10,565 4.3 37,820 4.1 8,324 3.6 (2,241) (21.2) 7 0.1 Maintenance and subscriptions 40,682 18.6 40,369 16.5 161,435 17.3 40,298 17.5 (71) (0.2) (384) (0.9) ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 48,999 22.4 50,934 20.8 199,255 21.4 48,622 21.1 (2,312) (4.5) (377) (0.8) NetWare and other NetWare-related Software licenses 5,017 2.3 4,588 1.9 18,972 2.0 3,943 1.7 (645) (14.1) (1,074) (21.4) Maintenance and subscriptions 2,195 1.0 1,553 0.6 6,810 0.7 1,558 0.7 5 0.3 (637) (29.0) ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 7,212 3.3 6,141 2.5 25,782 2.8 5,501 2.4 (640) (10.4) (1,711) (23.7) Collaboration Software licenses 5,265 2.4 7,986 3.3 27,116 2.9 6,574 2.8 (1,412) (17.7) 1,309 24.9 Maintenance and subscriptions 19,639 9.0 20,434 8.3 79,628 8.5 20,786 9.0 352 1.7 1,147 5.8 ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 24,904 11.4 28,420 11.6 106,744 11.4 27,360 11.8 (1,060) (3.7) 2,456 9.9 Other workgroup Software licenses 699 0.3 2,604 1.1 6,262 0.7 801 0.3 (1,803) (69.2) 102 14.6 Maintenance and subscriptions 7,795 3.6 9,545 3.9 34,950 3.7 7,919 3.4 (1,626) (17.0) 124 1.6 ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- 8,494 3.9 12,149 5.0 41,212 4.4 8,720 3.8 (3,429) (28.2) 226 2.7 Total workgroup 89,609 41.0 97,644 39.9 372,993 40.0 90,203 39.1 (7,441) (7.6) 594 0.7 Total software licenses, maintenance and subscriptions Software licenses 38,553 17.7 51,037 20.8 176,107 18.9 40,431 17.5 (10,606) (20.8) 1,878 4.9 Maintenance and subscriptions 134,671 61.7 147,108 60.1 564,354 60.5 149,183 64.6 2,075 1.4 14,512 10.8 ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- Total product revenue 173,224 79.3 198,145 80.9 740,461 79.4 189,614 82.1 (8,531) (4.3) 16,390 9.4 ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- Services 45,162 20.7 46,791 19.1 192,038 20.6 41,312 17.9 (5,479) (11.7) (3,850) (8.5) ---------- ----- ---------- ------ ---------- ----- ---------- ------ --------- ------- --------- ------- Total net revenue $ 218,386 100.0 $ 244,936 100.0 $ 932,499 100.0 $ 230,926 100.0 $(14,010) (5.7) $ 12,540 5.7 ========== ===== ========== ====== ========== ===== ========== ====== ========= ======= ========= ======= Reclassifications were made to the prior period amounts in order to conform to the current period's presentation.
Page 11 of 11 Novell, Inc. Major IT Software and Solutions Included Within Reported Line Items Open Platform Solutions Linux Platform Products > SUSE LINUX Enterprise Server > SUSE LINUX Enterprise Desktop Other Open Platform Products > openSUSE > SUSE Engineering Identity and Security Management Identity and Access Management > Identity Manager > SecureLogin > Access Manager > Sentinel Other Identity and Security Management > Web Services > eDirectory Systems and Resource Management > ZENworks Suite > ZENworks Patch Management > ZENworks Asset Management > ZENworks Linux Management > ZENworks Configuration Management Workgroup Open Enterprise Server > Open Enterprise Server NetWare and Other NetWare-Related > NetWare > Cluster Services Collaboration > GroupWise Other Workgroup > BorderManager Services > Professional Services > Technical Support Services > Training Services