Exhibit 99.1
FOR IMMEDIATE RELEASE
February 26, 2009
Novell Reports Financial Results for First Fiscal Quarter 2009
• Delivers strong operating margin performance
• Reiterates operating margin target for full fiscal year 2009
WALTHAM, Mass. – February 26, 2009 – Novell, Inc. (NASDAQ: NOVL) today announced financial results for its first fiscal quarter ended January 31, 2009. For the quarter, Novell reported net revenue of $215 million. This compares to net revenue of $231 million for the first fiscal quarter of 2008. Income from operations for the first fiscal quarter of 2009 was $14 million, compared to income from operations of $8 million for the first fiscal quarter of 2008. Net income in the first fiscal quarter of 2009 was $11 million, or $0.03 per share. This compares to net income of $17 million, or $0.05 per share, for the first fiscal quarter of 2008. In the first fiscal quarter of 2009, foreign currency exchange rates negatively impacted net revenue by $3 million and favorably impacted operating expenses by $11 million and income from operations by $8 million compared to the same period last year.
On a non-GAAP basis, income from operations for the first fiscal quarter of 2009 was $34 million. This compares to non-GAAP income from operations of $25 million in the year-ago quarter. Non-GAAP net income for the first fiscal quarter of 2009 was $24 million, or $0.07 per share. This compares to non-GAAP net income of $30 million, or $0.09 per share, for the first fiscal quarter of 2008.
Novell reported $37 million of product revenue from Open Platform Solutions, of which $35 million was from Linux Platform Products, up 24% compared to the same period last year. Product revenue from Identity and Security Management was $28 million, of which Identity, Access and Compliance Management (formerly called Identity and Access Management) was $26 million, down 8% compared to the same period last year. Product revenue from Systems and Resource Management was $40 million, up 9% compared to the same period last year. Workgroup product revenue of $81 million decreased 9% compared to the same period last year.
“While our invoicing was below our expectations in this weak economy, we continued to take actions to carefully manage our operating margin,” said Ron Hovsepian, President and CEO of Novell. “We are confident about our long-term growth opportunities and remain committed to maintaining our target profitability levels.”
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Cash, cash equivalents and short-term investments were $1.0 billion at January 31, 2009, consistent with last quarter. Days sales outstanding in accounts receivable was 46 days at the end of the first fiscal quarter of 2009 down from 51 days at the end of the year-ago quarter. Total deferred revenue was $705 million at the end of the first fiscal quarter of 2009, down from $723 million at the end of the year-ago quarter. For the first fiscal quarter of 2009, cash flow from operations was $14 million and included a $25 million payment from Microsoft. This compares to cash flow from operations of negative $26 million in the first fiscal quarter of 2008.
Novell did not repurchase any shares of common stock during the quarter under its share repurchase program. There is currently $33 million remaining under the share repurchase program, and Novell intends to use the program to maintain a steady level of shares outstanding.
During the quarter, Novell used $4 million of cash to repurchase a portion of its outstanding 0.5% senior convertible debentures.
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
Novell management remains committed to long-term sustainable profitability. Novell management reiterates its target of no less than 10% non-GAAP operating margin in the full fiscal year 2009.
Conference Call Notification and Web Access Detail
A one-hour conference call with Novell management to discuss the quarter will be broadcast at 5:00 PM ET on February 26, 2009. The conference call will be available live as a listen-only webcast from Novell's Investor Relations web page at: www.novell.com/company/ir/qresults. The domestic toll-free dial-in number is 866-335-5255, password “Novell”. The international dial-in number is +1-706-679-2263, password “Novell”.
Following the live event, an archived version of the webcast will be available for twelve months on the Novell Investor Relations web page at: www.novell.com/company/ir/qresults.
A copy of this press release is posted on the Novell Investor Relations web page at: 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 from operations, adjusted operating margin, adjusted income from continuing operations, adjusted net income, adjusted income per share from continuing operations and adjusted net income per share. We provide non-GAAP financial measures to enhance an overall understanding of our current financial performance and prospects for the future and to 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 excluded from most analysts' consensus estimates, that are unusual, and/or that arise outside of the ordinary course of business, such as, but not limited to, those related to stock-based compensation, acquisition-related intangible asset amortization, restructuring, asset impairments, litigation judgments and settlements, purchased in-process research and development, and 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 our brands, strategies and acquisitions, and the growth of the Linux Platform Products, Identity, Access and Compliance Management, and Systems and Resource Management markets. Actual results may differ materially from the results discussed in or implied by such forward-looking statements, which are based upon information that is currently available to us and/or management’s current expectations, speak only as of the date hereof, and are subject to a number of factors, including, but not limited to: difficulties, delays or unexpected costs in completing our cost reduction and sales growth strategic initiatives; our ability to attract and retain new customers through our indirect sales strategy; our reliance on an indirect sales channel for the distribution of products; our ability to renew SLES subscriptions with those customers who have received SLES certificates from Microsoft; an accelerated decline in our OES and NetWare-related revenue stream; the ability of our Open Platform Solutions, Identity and Security Management, and Systems and Resource Management business unit segments to grow at expected rates; our ability to successfully integrate acquired companies; our ability to compete in markets for infrastructure software services; our ability to meet customer demand for technical support services; our ability to maintain a strong brand; delays in the introduction of new products; increased foreign research and development operations; reliance on software licensed from third parties; our ability to attract and retain talented employees; claims that we have infringed the intellectual property rights of others; adverse results in legal disputes; our ability to protect our confidential information; impairment of goodwill or amortizable intangible assets causing a charge to earnings; exposure to increased economic and regulatory uncertainties from operating a global business; cancellations or reductions in the scope of our engagements with professional services clients; and uncertain economic conditions and reductions in IT spending.
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A detailed discussion of these and other factors that could affect our results is included in our SEC filings, including, but not limited to, our Annual Report on Form 10-K for the Fiscal Year Ended October 31, 2008 filed with the SEC on December 23, 2008, which may be obtained by calling (800) 317- 3195, or at our Investor Relations web site at http://www.novell.com/company/ir.
We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any forward-looking statements contained in this press release to reflect any change of expectations with regard thereto or to reflect any change in events, conditions, or circumstances on which any such forward-looking statement is based, in whole or in part.
About Novell
Novell, Inc. (NASDAQ: NOVL) delivers an interoperable Linux* platform and a portfolio of integrated IT management software designed to help customers around the world reduce cost, complexity and risk. With our infrastructure software and ecosystem of partnerships, Novell harmoniously integrates mixed IT environments, allowing people and technology to work as one. For more information, visit www.novell.com.
_________________
Novell and the Novell logo are registered trademarks of Novell, Inc. in the United States and other countries. *All third party marks are the property of their respective owners.
Press Contact:
Ian Bruce
Novell, Inc.
Phone: 781-464-8034
E-Mail: ibruce@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, 2009 Jan 31, 2008 --------------------- -------------------- Net revenue: Software licenses $ 28,267 $ 40,202 Maintenance and subscriptions 158,815 150,067 Services (1) 27,789 40,657 --------------------- -------------------- Total net revenue 214,871 230,926 --------------------- -------------------- Cost of revenue: Software licenses 2,526 3,099 Maintenance and subscriptions 12,899 10,941 Services 31,472 43,901 --------------------- -------------------- Total cost of revenue 46,897 57,941 --------------------- -------------------- Gross profit 167,974 172,985 --------------------- -------------------- Operating expenses: Sales and marketing 76,894 88,005 Product development 45,392 44,735 General and administrative 24,195 27,397 Other operating expenses (2) 7,849 4,367 --------------------- -------------------- Total operating expenses 154,330 164,504 Income from operations 13,644 8,481 Operating margin % 6.3% 3.7% Other income, net: Interest income, net 5,790 16,449 Other (3,426) 707 --------------------- -------------------- Total other income, net 2,364 17,156 --------------------- -------------------- Income from continuing operations before taxes 16,008 25,637 Income tax expense 6,367 10,953 --------------------- -------------------- Income from continuing operations 9,641 14,684 Income from discontinued operations before taxes 1,036 1,285 Income tax benefit on discontinued operations - (836) --------------------- -------------------- Income from discontinued operations 1,036 2,121 Net Income $ 10,677 $ 16,805 ===================== ==================== Diluted earnings per share: Continuing operations $ 0.03 $ 0.04 Net income $ 0.03 $ 0.05 Weighted average shares 344,281 353,047 (1) Services includes professional services, technical support and training services. (2) See Page 8 of 11 for a detail of other operating expenses. Revisions 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, 2009 Oct 31, 2008 ------------------- ------------------- Assets Current assets: Cash and cash equivalents $ 648,093 $ 680,034 Short-term investments 387,334 387,813 Restricted cash 52,879 52,701 Receivables, net 111,775 193,088 Prepaid expenses 32,508 34,365 Current deferred tax assets 4,718 5,685 Other current assets 25,705 32,006 ------------------- ------------------- Total current assets 1,263,012 1,385,692 Property, plant and equipment, net 168,126 174,978 Long-term investments 12,991 14,972 Goodwill 616,801 582,117 Intangible assets, net 57,817 53,320 Deferred income taxes 36,483 36,244 Other assets 21,848 22,026 ------------------- ------------------- Total assets $ 2,177,078 $ 2,269,349 =================== =================== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 28,544 $ 36,982 Accrued compensation 61,908 102,317 Other accrued liabilities 92,884 108,929 Income taxes payable 4,851 22,563 Senior convertible debentures 121,668 125,668 Deferred revenue 487,412 503,174 ------------------- ------------------- Total current liabilities 797,267 899,633 Deferred income taxes 11,643 11,725 Other long-term liabilities 46,354 43,587 Long-term deferred revenue 217,205 226,876 ------------------- ------------------- Total liabilities 1,072,469 1,181,821 Stockholders' equity 1,104,609 1,087,528 ------------------- ------------------- Total liabilities and stockholders' equity $ 2,177,078 $ 2,269,349 =================== ===================
Page 7 of 11 Novell, Inc. Consolidated Unaudited Condensed Statements of Cash Flows (In thousands) Fiscal Quarter Ended ------------------------------------- Jan 31, 2009 Jan 31, 2008 ---------------- ----------------- Cash flows from operating activities Net income $ 10,677 $ 16,805 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Stock-based compensation expense 8,031 10,767 Depreciation and amortization 11,021 9,000 Change in accounts receivable allowances 216 (363) Utilization of previously reserved acquired net operating losses 1,102 5,002 Gain on debenture repurchases (68) - Gain on discontinued operations, before taxes (1,036) (1,180) Impairment of investments 1,677 - Gain on sale of subsidiaries (200) - Changes in current assets and liabilities, excluding acquisitions and dispositions (17,287) (66,317) ---------------- ----------------- Net cash provided by (used in) operating activities 14,133 (26,286) ---------------- ----------------- Cash flows from investing activities Purchases of property, plant and equipment (3,512) (5,859) Short-term investment activity 6,543 34,518 Long-term investment activity 535 - Cash restricted due to litigation (178) (51,495) Net proceeds from sale of discontinued operations 1,036 (3,417) Net cash paid for acquisitions (42,950) - Other (3,015) (921) ---------------- ----------------- Net cash used in investing activities (41,541) (27,174) ---------------- ----------------- Cash flows from financing activities (Surrenders) issuance of common stock, net (498) 2,582 Excess tax benefits from stock-based compensation 26 9,680 Debt repayment (192) - Debenture repurchases (3,869) - ---------------- ----------------- Net cash (used in) provided by financing activities (4,533) 12,262 ---------------- ----------------- Decrease in cash and cash equivalents (31,941) (41,198) Cash and cash equivalents - beginning of period 680,034 1,079,819 ---------------- ----------------- Cash and cash equivalents - end of period $ 648,093 $1,038,621 ================ =================
Page 8 of 11 Novell, Inc. Unaudited Non-GAAP Adjusted Income From Operations (In thousands, except per share data) Fiscal Quarter Ended ------------------------------- Jan 31, 2009 Jan 31, 2008 -------------- ------------- GAAP income from operations $ 13,644 $ 8,481 -------------- ------------- Adjustments: Stock-based compensation expense: Cost of revenue 912 1,297 Sales and marketing 2,563 3,417 Product development 2,505 3,004 General and administrative 2,051 3,049 -------------- ------------- Sub-total 8,031 10,767 -------------- ------------- Acquisition-related intangible asset amortization: Cost of revenue 2,753 1,192 Sales and marketing 1,550 350 -------------- ------------- Sub-total 4,303 1,542 -------------- ------------- Other operating expenses (income): Restructuring expenses 8,049 4,367 Gain on sale of subsidiaries (200) - -------------- ------------- Sub-total 7,849 4,367 -------------- ------------- Total operating adjustments 20,183 16,676 Non-GAAP income from operations $ 33,827 $ 25,157 ============== ============= Operating margin % 15.7% 10.9% ---------------------------------------------------------------------------------------------------- Novell, Inc. Unaudited Non-GAAP Adjusted Net Income (In thousands, except per share data) Fiscal Quarter Ended ------------------------------- Jan 31, 2009 Jan 31, 2008 -------------- ------------- GAAP net income $ 10,677 $ 16,805 -------------- ------------- Operating adjustments (detailed above) 20,183 16,676 Non-operating expenses (income) adjustments: Gain on debenture repurchases (68) - Impairment of investments 1,677 - -------------- ------------- Sub-total 1,609 - -------------- ------------- Total pre-tax adjustments 21,792 16,676 Income tax adjustments (7,023) (1,152) Income from discontinued operations, net of taxes (1,036) (2,121) -------------- ------------- Total net adjustments 13,733 13,403 Non-GAAP net income and non-GAAP income from continuing operations $ 24,410 $ 30,208 ============== ============= GAAP net income per share $ 0.03 $ 0.05 Total adjustments detailed above 0.04 0.04 -------------- ------------- Non-GAAP net income per share and non-GAAP income from continuing operations per share $ 0.07 $ 0.09 ============== ============= Non-GAAP weighted average shares 344,281 353,047 ============== ============= Revisions were made to prior period amounts in order to conform to the current period's presentation.
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Consolidated Unaudited Condensed Segment Results (in thousands, except per share data) Fiscal Quarter Ended January 31, 2009 ----------------------------------------------------------------------------------------------------------- Identity Systems Open Platform and Security and Resource Common Solutions % Management % Management % Workgroup % Unallocated Total % ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Net revenue: Software licenses $ - - $ 5,967 15.7 $ 9,136 20.1 $ 13,164 14.6 $ - $ 28,267 13.2 Maintenance and subscriptions 37,111 89.5 22,319 58.8 31,116 68.5 68,269 75.8 - 158,815 73.9 Services 4,351 10.5 9,700 25.5 5,151 11.3 8,587 9.5 - 27,789 12.9 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total net revenue 41,462 100.0 37,986 100.0 45,403 100.0 90,020 100.0 - 214,871 100.0 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Cost of revenue: Software licenses - - 537 1.4 832 1.8 678 0.8 479 2,526 1.2 Maintenance and subscriptions 1,849 4.5 2,007 5.3 2,833 6.2 3,514 3.9 2,696 12,899 6.0 Services 5,844 14.1 10,050 26.5 4,471 9.8 10,617 11.8 490 31,472 14.6 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total cost of revenue 7,693 18.6 12,594 33.2 8,136 17.9 14,809 16.5 3,665 46,897 21.8 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Gross profit 33,769 81.4 25,392 66.8 37,267 82.1 75,211 83.5 (3,665) 167,974 78.2 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Operating expenses: Sales and marketing - - - - - - - - 76,894 76,894 35.8 Product development 14,299 34.5 8,336 21.9 11,339 25.0 8,913 9.9 2,505 45,392 21.1 General and administrative - - - - - - - - 24,195 24,195 11.3 Other operating expenses - - - - - - - - 7,849 7,849 3.7 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total operating expenses 14,299 34.5 8,336 21.9 11,339 25.0 8,913 9.9 111,443 154,330 71.8 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Income (loss) from operations $ 19,470 47.0 $ 17,056 44.9 $ 25,928 57.1 $ 66,298 73.6 $ (115,108) $ 13,644 6.3 ========== ====== ========== ====== ========== ====== ========== ====== ========== ========== ====== Fiscal Quarter Ended October 31, 2008 ----------------------------------------------------------------------------------------------------------- Identity Systems Open Platform and Security and Resource Common Solutions % Management % Management % Workgroup % Unallocated Total % ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Net revenue: Software licenses $ - - $ 16,042 38.0 $ 13,650 23.5 $ 21,670 21.1 $ - $ 51,362 21.0 Maintenance and subscriptions 36,849 88.5 21,283 50.4 31,467 54.2 70,057 68.2 - 159,656 65.2 Services 4,809 11.5 4,914 11.6 12,976 22.3 11,019 10.7 - 33,718 13.8 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total net revenue 41,658 100.0 42,239 100.0 58,093 100.0 102,746 100.0 - 244,736 100.0 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Cost of revenue: Software licenses - - 2,036 4.8 1,210 2.1 788 0.8 757 4,791 2.0 Maintenance and subscriptions 2,476 5.9 2,701 6.4 2,789 4.8 2,547 2.5 2,352 12,865 5.3 Services 7,215 17.3 14,540 34.4 4,512 7.8 12,319 12.0 1,001 39,587 16.2 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total cost of revenue 9,691 23.3 19,277 45.6 8,511 14.7 15,654 15.2 4,110 57,243 23.4 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Gross profit 31,967 76.7 22,962 54.4 49,582 85.3 87,092 84.8 (4,110) 187,493 76.6 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Operating expenses: Sales and marketing - - - - - - - - 90,858 90,858 37.1 Product development 14,438 34.7 10,448 24.7 12,342 21.2 10,764 10.5 2,463 50,455 20.6 General and administrative - - - - - - - - 27,014 27,014 11.0 Other operating expenses - - - - - - - - 25,509 25,509 10.4 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total operating expenses 14,438 34.7 10,448 24.7 12,342 21.2 10,764 10.5 145,844 193,836 79.2 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Income (loss) from operations $ 17,529 42.1 $ 12,514 29.6 $ 37,240 64.1 $ 76,328 74.3 $ (149,954) $ (6,343) (2.6) ========== ====== ========== ====== ========== ====== ========== ====== ========== ========== ====== 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 $ - - $ 12,626 26.8 $ 7,945 18.3 $ 19,631 18.9 $ - $ 40,202 17.4 Maintenance and subscriptions 31,136 84.6 19,716 41.9 29,096 67.1 70,119 67.6 - 150,067 65.0 Services 5,663 15.4 14,688 31.2 6,298 14.5 14,008 13.5 - 40,657 17.6 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ 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 - - 1,170 2.5 714 1.6 968 0.9 247 3,099 1.3 Maintenance and subscriptions 2,127 5.8 1,825 3.9 2,611 6.0 3,456 3.3 922 10,941 4.7 Services 8,883 24.1 16,180 34.4 4,523 10.4 12,995 12.5 1,320 43,901 19.0 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total cost of revenue 11,010 29.9 19,175 40.8 7,848 18.1 17,419 16.8 2,489 57,941 25.1 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Gross profit 25,789 70.1 27,855 59.2 35,491 81.9 86,339 83.2 (2,489) 172,985 74.9 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Operating expenses: Sales and marketing - - - - - - - - 88,005 88,005 38.1 Product development 13,921 37.8 11,459 24.4 7,818 18.0 8,533 8.2 3,004 44,735 19.4 General and administrative - - - - - - - - 27,397 27,397 11.9 Other operating expenses - - - - - - - - 4,367 4,367 1.9 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Total operating expenses 13,921 37.8 11,459 24.4 7,818 18.0 8,533 8.2 122,773 164,504 71.2 ---------- ------ ---------- ------ ---------- ------ ---------- ------ ---------- ---------- ------ Income (loss) from operations $ 11,868 32.3 $ 16,396 34.9 $ 27,673 63.9 $ 77,806 75.0 $ (125,262) $ 8,481 3.7 ========== ====== ========== ====== ========== ====== ========== ====== ========== ========== ====== Revisions were made to 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 2008 % Q4 2008 % 2008 % Q1 2009 % Q4 2008 to Q1 2009 Q1 2008 to Q1 2009 ---------- --------- --------- --------- ---------- --------- ---------- --------- -------------------- -------------------- Open platform solutions Linux platform products Software licenses $ - - $ - - $ - - $ - - $ - - $ - - Maintenance and subscriptions 28,513 12.3 34,301 14.0 123,386 12.9 35,230 16.4 929 2.7 6,717 23.6 ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- 28,513 12.3 34,301 14.0 123,386 12.9 35,230 16.4 929 2.7 6,717 23.6 Other open platform products Software licenses - - - - 164 0.0 - - - - - - Maintenance and subscriptions 2,623 1.1 2,548 1.0 9,576 1.0 1,881 0.9 (667) (26.2) (742) (28.3) ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- 2,623 1.1 2,548 1.0 9,740 1.0 1,881 0.9 (667) (26.2) (742) (28.3) Total open platform solutions 31,136 13.5 36,849 15.1 133,126 13.9 37,111 17.3 262 0.7 5,975 19.2 Identity and security management Identity, access and compliance management Software licenses 11,874 5.1 15,439 6.3 53,956 5.6 5,531 2.6 (9,908) (64.2) (6,343) (53.4) Maintenance and subscriptions 16,609 7.2 19,370 7.9 70,321 7.4 20,604 9.6 1,234 6.4 3,995 24.1 ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- 28,483 12.3 34,809 14.2 124,277 13.0 26,135 12.2 (8,674) (24.9) (2,348) (8.2) Other identity and security management Software licenses 752 0.3 603 0.2 2,667 0.3 436 0.2 (167) (27.7) (316) (42.0) Maintenance and subscriptions 3,107 1.3 1,913 0.8 10,301 1.1 1,715 0.8 (198) (10.4) (1,392) (44.8) ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- 3,859 1.7 2,516 1.0 12,968 1.4 2,151 1.0 (365) (14.5) (1,708) (44.3) Total identity and security management 32,342 14.0 37,325 15.3 137,245 14.3 28,286 13.2 (9,039) (24.2) (4,056) (12.5) Systems and resource management Software licenses 7,945 3.4 13,650 5.6 48,126 5.0 9,136 4.3 (4,514) (33.1) 1,191 15.0 Maintenance and subscriptions 29,096 12.6 31,467 12.9 122,040 12.8 31,116 14.5 (351) (1.1) 2,020 6.9 Total systems and resource management 37,041 16.0 45,117 18.4 170,166 17.8 40,252 18.7 (4,865) (10.8) 3,211 8.7 Workgroup OES and NetWare-related Software licenses 9,600 4.2 10,364 4.2 39,379 4.1 3,977 1.9 (6,387) (61.6) (5,623) (58.6) Maintenance and subscriptions 41,849 18.1 41,425 16.9 166,496 17.4 40,176 18.7 (1,249) (3.0) (1,673) (4.0) ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- 51,449 22.3 51,789 21.2 205,875 21.5 44,153 20.5 (7,636) (14.7) (7,296) (14.2) Collaboration Software licenses 6,574 2.8 7,424 3.0 28,320 3.0 3,136 1.5 (4,288) (57.8) (3,438) (52.3) Maintenance and subscriptions 20,790 9.0 21,928 9.0 85,462 8.9 21,791 10.1 (137) (0.6) 1,001 4.8 ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- 27,364 11.8 29,352 12.0 113,782 11.9 24,927 11.6 (4,425) (15.1) (2,437) (8.9) Other workgroup Software licenses 3,457 1.5 3,882 1.6 16,371 1.7 6,051 2.8 2,169 55.9 2,594 75.0 Maintenance and subscriptions 7,480 3.2 6,704 2.7 28,911 3.0 6,302 2.9 (402) (6.0) (1,178) (15.7) ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- 10,937 4.7 10,586 4.3 45,282 4.7 12,353 5.7 1,767 16.7 1,416 12.9 Total workgroup 89,750 38.9 91,727 37.5 364,939 38.2 81,433 37.9 (10,294) (11.2) (8,317) (9.3) Total software licenses, maintenance and subscriptions Software licenses 40,202 17.4 51,362 21.0 188,983 19.8 28,267 13.2 (23,095) (45.0) (11,935) (29.7) Maintenance and subscriptions 150,067 65.0 159,656 65.2 616,493 64.5 158,815 73.9 (841) (0.5) 8,748 5.8 ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- Total product revenue 190,269 82.4 211,018 86.2 805,476 84.2 187,082 87.1 (23,936) (11.3) (3,187) (1.7) ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- Services 40,657 17.6 33,718 13.8 151,037 15.8 27,789 12.9 (5,929) (17.6) (12,868) (31.7) ---------- --------- --------- --------- ---------- --------- ---------- --------- --------- --------- --------- ---------- Total net revenue $230,926 100.0 $244,736 100.0 $956,513 100.0 $214,871 100.0 $(29,865) (12.2) $(16,055) (7.0) ========== ========= ========= ========= ========== ========= ========== ========= ========= ========= ========= ========== Revisions were made to 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, Access and Compliance Management > Identity Manager > SecureLogin > Access Manager > Sentinel Other Identity and Security Management > eDirectory Systems and Resource Management > ZENworks Suite > ZENworks Patch Management > ZENworks Asset Management > ZENworks Linux Management > ZENworks Configuration Management > PlateSpin > Managed Objects Workgroup Open Enterprise Server and NetWare-Related > Open Enterprise Server (OES) > NetWare > Cluster Services Collaboration > GroupWise > Teaming + Conferencing Other Workgroup > BorderManager Services > Professional Services > Technical Support Services > Training Services