Exhibit 99.1
FOR IMMEDIATE RELEASE
February 25, 2010
Novell Reports Financial Results for First Fiscal Quarter 2010
• Security, Management and Operating Platforms business unit invoicing grew 26% year-over-year
• Solid operating margin performance
WALTHAM, Mass. – February 25, 2010 – Novell, Inc. (NASDAQ: NOVL) today announced financial results for its first fiscal quarter ended January 31, 2010. For the quarter, Novell reported net revenue of $202 million. This compares to net revenue of $215 million for the first fiscal quarter of 2009. GAAP income from operations for the first fiscal quarter of 2010 was $21 million. This compares to GAAP income from operations of $14 million for the first fiscal quarter of 2009. GAAP net income in the first fiscal quarter of 2010 was $20 million, or $0.06 per share. This compares to GAAP net income of $11 million, or $0.03 per share, for the first fiscal quarter of 2009. First fiscal quarter of 2010 results included a $5 million change in accounting estimate related to fiscal 2009 sales compensation that increased profitability in the first fiscal quarter of 2010. This benefit was more than offset by a $6 million negative impact to income from operations from foreign currency exchange rates compared to the same period last year. Foreign currency exchange rates favorably impacted net revenue by $1 million.
On a non-GAAP basis, income from operations for the first fiscal quarter of 2010 was $33 million. This compares to non-GAAP income from operations of $34 million in the same period last year. Non-GAAP net income for the first fiscal quarter of 2010 was $25 million, or $0.07 per share. This compares to non-GAAP net income of $24 million, or $0.07 per share, for the first fiscal quarter of 2009. A reconciliation of GAAP to non-GAAP results is provided in the financial schedules as part of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
“We are pleased with the invoicing recovery in our Security, Management and Operating Platforms business unit as well as our solid operating margin performance this quarter,” said Ron Hovsepian, President and CEO of Novell.
Cash, cash equivalents and short-term investments were $991 million at January 31, 2010, up from $983 million last quarter. Days sales outstanding in accounts receivable was 50 days at the end of the first fiscal quarter of 2010, up from 46 days at the end of the year-ago quarter. Total deferred revenue was $646 million at the end of the first fiscal quarter of 2010, down from $705 million at the end of the year-ago quarter. For the first fiscal quarter of 2010, cash flow from operations was $5 million. This compares to cash flow from operations of $13 million for the first fiscal quarter of 2009, which included a $25 million payment from Microsoft.
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Further details on Novell’s reported results are included in the financial schedules that are a part of this release.
Financial Outlook
Novell management issues the following guidance for the second fiscal quarter of 2010:
• Net revenue is expected to be similar to first fiscal quarter of 2010 revenue levels
• Non-GAAP operating margin is expected to be between 12% and 15%
Conference Call Notification and Web Access Detail
A one-hour conference call with Novell management to discuss the quarter will be broadcast at 5:00PM ET on February 25, 2010. 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.
Non-GAAP Financial Measures
We 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 compensation. 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, and the sale of business operations, long-term investments, and property, plant and equipment.
We also present a projection of our non-GAAP operating margin. This projection is a forward-looking, non-GAAP financial measure. The corresponding GAAP financial measure of operating margin is not available and cannot be provided without undue effort because we are unable to accurately forecast information regarding expenses or gains such as, but not limited to, those listed above. We believe that the corresponding GAAP financial measure is not likely to be significant to an understanding of our business because there is likely to be substantial variability between projected and actual realization of the expenses and gains described above and/or that such expenses or gains are likely to arise outside of the ordinary course of business.
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Legal Notice Regarding Forward-Looking Statements
This press release may include 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, targets, and prospects; future opportunities; market leadership and positioning; short-term and long-term trends; the macroeconomic environment; customer priorities; timing of realization of projections; functionality, characteristics, quality and performance capabilities of Novell’s products and technology; and results achievable and benefits attainable through deployment of Novell’s products and provision of services. Forward-looking statements forecasting growth in financial metrics are predicated on assumptions regarding improvements in the overall economy and the markets served by the Company and in which the Company operates, the timing of which are impossible to accurately predict. 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 and speak only as of the date hereof. We are subject to a number of risks, including, among others, risks relating to: indirect sales, growth rates of our business units, renewal of SUSE Linux Enterprise ServerTM subscriptions with customers who have received certificates from Microsoft, decline rates of Open Enterprise Server and NetWare® revenue, development of products and services, the Intelligent Workload Management market, software vulnerabilities, delays in product releases, reliance on open source software, adequacy of renewal rates, uncertain economic conditions, competition, rapid technological changes, failure to expand brand awareness, adequacy of technical support, pricing pressures, system failures, integration of acquisitions, industry consolidation, challenges resulting from a global business, foreign research and development operations, loss of key employees, intellectual property infringement, litigation matters, unpredictable financial results, impairments, the timing of revenue recognition, our investments, and effective use of our cash.
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, 2009 filed with the SEC on December 22, 2009, which may be obtained by calling (800) 317- 3195, or at our Investor Relations web page at: www.novell.com/company/ir.
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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, the Novell logo, and NetWare are registered trademarks of Novell, Inc. in the United States and other countries. *All third party trademarks 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, 2010 Jan 31, 2009 -------------- -------------- Net revenue: Software licenses $ 21,193 $ 28,267 Maintenance and subscriptions 158,951 158,815 Services (1) 22,222 27,789 -------------- ------------- Total net revenue 202,366 214,871 -------------- ------------- Cost of revenue: Software licenses 1,688 2,036 Maintenance and subscriptions 22,572 22,702 Services 19,458 22,159 -------------- ------------- Total cost of revenue 43,718 46,897 -------------- ------------- Gross profit 158,648 167,974 -------------- ------------- Operating expenses: Sales and marketing 68,916 76,894 Product development 39,702 45,392 General and administrative 25,827 24,195 Other operating expenses (2) 2,774 7,849 -------------- ------------- Total operating expenses 137,219 154,330 Income from operations 21,429 13,644 Operating margin % 10.6% 6.3% Other income, net: Interest income, net 2,899 5,790 Other 3,767 (3,426) -------------- ------------- Total other income, net 6,666 2,364 -------------- ------------- Income from continuing operations before taxes 28,095 16,008 Income tax expense 7,906 6,367 -------------- ------------- Income from continuing operations 20,189 9,641 Income from discontinued operations - 1,036 -------------- ------------- Net income $ 20,189 $ 10,677 ============== ============= Diluted earnings per share: Continuing operations $ 0.06 $ 0.03 Net income $ 0.06 $ 0.03 Weighted average shares 349,144 344,281 (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, 2010 Oct 31, 2009 -------------- -------------- Assets Current assets: Cash and cash equivalents $ 607,050 $ 591,656 Short-term investments 384,242 391,809 Restricted cash 53,045 53,033 Receivables, net 112,279 177,898 Prepaid expenses 17,996 17,708 Current deferred tax assets 5,442 5,521 Other current assets 23,023 26,747 -------------- -------------- Total current assets 1,203,077 1,264,372 Property, plant and equipment, net 167,009 170,459 Long-term investments 2,070 10,303 Goodwill 356,194 356,033 Intangible assets, net 34,523 36,621 Deferred income taxes 21,673 26,717 Other assets 34,924 38,403 -------------- -------------- Total assets $ 1,819,470 $ 1,902,908 ============== ============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 31,859 $ 37,628 Accrued compensation 49,388 87,928 Other accrued liabilities 82,081 97,154 Income taxes payable 718 - Deferred revenue 464,850 495,245 -------------- -------------- Total current liabilities 628,896 717,955 Deferred income taxes 8,360 8,403 Other long-term liabilities 48,000 48,502 Long-term deferred revenue 181,031 193,526 -------------- -------------- Total liabilities 866,287 968,386 Stockholders' equity 953,183 934,522 -------------- -------------- Total liabilities and stockholders' equity $ 1,819,470 $ 1,902,908 ============== ============== Revisions were made to prior period amounts in order to conform to the current period's presentation.
Page 7 of 11 Novell, Inc. Consolidated Unaudited Condensed Statements of Cash Flows (In thousands) Fiscal Quarter Ended ------------------------------- Jan 31, 2010 Jan 31, 2009 -------------- -------------- Cash flows from operating activities Net income $ 20,189 $ 10,677 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 6,450 8,031 Depreciation and amortization 7,437 11,021 Change in accounts receivable allowances (1,209) 212 Utilization of previously reserved acquired net operating losses - 1,102 Gain on debenture repurchases - (68) Income from discontinued operations - (1,036) Impairment of investments - 1,677 Gain on sale of previously impaired long-term investments (5,228) - Gain on sale of subsidiary - (200) Changes in current assets and liabilities, excluding the effect of acquisitions and dispositions (22,443) (18,818) -------------- -------------- Net cash provided by operating activities 5,196 12,598 -------------- -------------- Cash flows from investing activities Purchases of property, plant and equipment (8,128) (3,512) Short-term investment activity 11,998 6,543 Long-term investment activity 7,303 535 Change in restricted cash (12) (178) Cash proceeds from sale of discontinued operations 243 1,036 Cash paid for acquisitions, net of cash acquired - (42,950) Other 1,154 (2,350) -------------- -------------- Net cash provided by (used in) investing activities 12,558 (40,876) -------------- -------------- Cash flows from financing activities Issuances of common stock 832 983 Excess tax effects from stock-based compensation 1 26 Debt repayment - (192) Debenture repurchases - (3,869) -------------- -------------- Net cash provided by (used in) financing activities 833 (3,052) -------------- -------------- Increase (decrease) in cash and cash equivalents 18,587 (31,330) Effect of exchange rate changes on cash (3,193) (611) Cash and cash equivalents - beginning of period 591,656 680,034 -------------- -------------- Cash and cash equivalents - end of period $ 607,050 $ 648,093 ============== ============== Revisions were made to prior period amounts in order to conform to the current period's presentation.
Page 8 of 11 Novell, Inc. Unaudited Non-GAAP Adjusted Income From Operations (In thousands, except per share data) Fiscal Quarter Ended ------------------------------- Jan 31, 2010 Jan 31, 2009 -------------- -------------- GAAP income from operations $ 21,429 $ 13,644 -------------- -------------- Adjustments: Stock-based compensation expense: Cost of revenue 559 912 Sales and marketing 1,840 2,563 Product development 2,064 2,505 General and administrative 1,987 2,051 -------------- -------------- Sub-total 6,450 8,031 -------------- -------------- Acquisition-related intangible asset amortization: Cost of revenue 1,090 2,753 Sales and marketing 1,008 1,550 -------------- -------------- Sub-total 2,098 4,303 -------------- -------------- Other operating expenses (income): Restructuring expenses 2,774 8,049 Gain on sale of subsidiary - (200) -------------- -------------- Sub-total 2,774 7,849 -------------- -------------- Total operating adjustments 11,322 20,183 Non-GAAP income from operations $ 32,751 $ 33,827 ============== ============== Non-GAAP operating margin % 16.2% 15.7% - ---------------------------------------------------------------------------------------------- Novell, Inc. Unaudited Non-GAAP Adjusted Net Income (In thousands, except per share data) Fiscal Quarter Ended ------------------------------- Jan 31, 2010 Jan 31, 2009 -------------- -------------- GAAP net income $ 20,189 $ 10,677 -------------- -------------- Operating adjustments (detailed above) 11,322 20,183 Non-operating expenses (income) adjustments: Gain on sale of previously impaired long-term investments (5,228) - Gain on debenture repurchases - (68) Impairment of investments - 1,677 -------------- -------------- Sub-total (5,228) 1,609 -------------- -------------- Total pre-tax adjustments 6,094 21,792 Income tax adjustments (1,475) (7,023) Income from discontinued operations - (1,036) -------------- -------------- Total net adjustments 4,619 13,733 Non-GAAP net income and non-GAAP income from continuing operations $ 24,808 $ 24,410 ============== ============== GAAP net income per share $ 0.06 $ 0.03 Total adjustments detailed above 0.01 0.04 -------------- -------------- Non-GAAP net income per share and non-GAAP income from continuing operations per share $ 0.07 $ 0.07 ============== ============== Non-GAAP weighted average shares 349,144 344,281 ============== ==============
Page 9 of 11 Novell, Inc. Consolidated Unaudited Condensed Segment Results (in thousands, except per share data) Fiscal Quarter Ended January 31, 2010 --------------------------------------------------------------------------------------- Security, Management and Collaboration Common Operating Platforms % Solutions % Unallocated Total % --------------------- ------- --------------- ------- ------------- ----------- ------- Net revenue: Software licenses $ 13,460 10.8 $ 7,733 10.0 $ - $ 21,193 10.5 Maintenance and subscriptions 95,205 76.4 63,746 82.0 - 158,951 78.5 Services 15,989 12.8 6,233 8.0 - 22,222 11.0 --------------------- ------- --------------- ------- ------------- ----------- ------- Total net revenue 124,654 100.0 77,712 100.0 - 202,366 100.0 --------------------- ------- --------------- ------- ------------- ----------- ------- Cost of revenue: Software licenses 1,334 1.1 227 0.3 127 1,688 0.8 Maintenance and subscriptions 14,372 11.5 7,088 9.1 1,112 22,572 11.2 Services 14,122 11.3 4,926 6.3 410 19,458 9.6 --------------------- ------- --------------- ------- ------------- ----------- ------- Total cost of revenue 29,828 23.9 12,241 15.8 1,649 43,718 21.6 --------------------- ------- --------------- ------- ------------- ----------- ------- Gross profit 94,826 76.1 65,471 84.2 (1,649) 158,648 78.4 --------------------- ------- --------------- ------- ------------- ----------- ------- Operating expenses: Sales and marketing 53,564 43.0 12,504 16.1 2,848 68,916 34.1 Product development 29,915 24.0 7,723 9.9 2,064 39,702 19.6 General and administrative 15,272 12.3 8,568 11.0 1,987 25,827 12.8 Other operating expenses - - - - 2,774 2,774 1.4 --------------------- ------- --------------- ------- ------------- ----------- ------- Total operating expenses 98,751 79.2 28,795 37.1 9,673 137,219 67.8 --------------------- ------- --------------- ------- ------------- ----------- ------- Income (loss) from operations $ (3,925) (3.1) $ 36,676 47.2 $ (11,322) $ 21,429 10.6 ===================== ======= =============== ======= ============= =========== ======= Fiscal Quarter Ended October 31, 2009 ------------------------------------------------------------------------------------- Security, Management and Collaboration Common Operating Platforms % Solutions % Unallocated Total % --------------------- ------- --------------- ------- ------------- ----------- ------- Net revenue: Software licenses $ 19,430 14.8 $ 11,952 14.2 $ - $ 31,382 14.6 Maintenance and subscriptions 94,189 71.6 65,713 78.1 - 159,902 74.2 Services 17,859 13.6 6,492 7.7 - 24,351 11.3 --------------------- ------- --------------- ------- ------------- ----------- ------- Total net revenue 131,478 100.0 84,157 100.0 - 215,635 100.0 --------------------- ------- --------------- ------- ------------- ----------- ------- Cost of revenue: Software licenses 2,247 1.7 384 0.5 336 2,967 1.4 Maintenance and subscriptions 14,816 11.3 7,603 9.0 1,857 24,276 11.3 Services 14,908 11.3 5,101 6.1 417 20,426 9.5 --------------------- ------- --------------- ------- ------------- ----------- ------- Total cost of revenue 31,971 24.3 13,088 15.6 2,610 47,669 22.1 --------------------- ------- --------------- ------- ------------- ----------- ------- Gross profit 99,507 75.7 71,069 84.4 (2,610) 167,966 77.9 --------------------- ------- --------------- ------- ------------- ----------- ------- Operating expenses: Sales and marketing 51,305 39.0 13,090 15.6 4,365 68,760 31.9 Product development 35,077 26.7 8,958 10.6 1,721 45,756 21.2 General and administrative 16,294 12.4 8,863 10.5 1,791 26,948 12.5 Other operating expenses - - - - 285,636 285,636 132.5 --------------------- ------- --------------- ------- ------------- ----------- ------- Total operating expenses 102,676 78.1 30,911 36.7 293,513 427,100 198.1 --------------------- ------- --------------- ------- ------------- ----------- ------- Income (loss) from operations $ (3,169) (2.4) $ 40,158 47.7 $ (296,123) $(259,134) (120.2) ===================== ======= =============== ======= ============= =========== ======= Fiscal Quarter Ended January 31, 2009 ------------------------------------------------------------------------------------- Security, Management and Collaboration Common Operating Platforms % Solutions % Unallocated Total % --------------------- ------- --------------- ------- ------------- ----------- ------- Net revenue: Software licenses $ 15,103 12.1 $ 13,164 14.6 $ - $ 28,267 13.2 Maintenance and subscriptions 90,546 72.5 68,269 75.8 - 158,815 73.9 Services 19,202 15.4 8,587 9.5 - 27,789 12.9 --------------------- ------- --------------- ------- ------------- ----------- ------- Total net revenue 124,851 100.0 90,020 100.0 - 214,871 100.0 --------------------- ------- --------------- ------- ------------- ----------- ------- Cost of revenue: Software licenses 1,184 0.9 451 0.5 401 2,036 0.9 Maintenance and subscriptions 12,011 9.6 8,196 9.1 2,495 22,702 10.6 Services 15,228 12.2 6,162 6.8 769 22,159 10.3 --------------------- ------- --------------- ------- ------------- ----------- ------- Total cost of revenue 28,423 22.8 14,809 16.5 3,665 46,897 21.8 --------------------- ------- --------------- ------- ------------- ----------- ------- Gross profit 96,428 77.2 75,211 83.5 (3,665) 167,974 78.2 --------------------- ------- --------------- ------- ------------- ----------- ------- Operating expenses: Sales and marketing 56,924 45.6 15,857 17.6 4,113 76,894 35.8 Product development 33,974 27.2 8,913 9.9 2,505 45,392 21.1 General and administrative 13,935 11.2 8,209 9.1 2,051 24,195 11.3 Other operating expenses - - - - 7,849 7,849 3.7 --------------------- ------- --------------- ------- ------------- ----------- ------- Total operating expenses 104,833 84.0 32,979 36.6 16,518 154,330 71.8 --------------------- ------- --------------- ------- ------------- ----------- ------- Income (loss) from operations $ (8,405) (6.7) $ 42,232 46.9 $ (20,183) $ 13,644 6.3 ===================== ======= =============== ======= ============= =========== ======= 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 2009 % Q4 2009 % 2009 % Q1 2010 % Q4 2009 to Q1 2010 Q1 2009 to Q1 2010 --------- ----- --------- ----- ----------- ----- --------- ----- ------------------ ------------------ Security, management and operating platforms Open platform solutions Linux platform products Software licenses $ - - $ - - $ - - $ - - $ - - $ - - Maintenance and subscriptions 35,230 16.4 39,011 18.1 149,162 17.3 37,473 18.5 (1,538) (3.9) 2,243 6.4 --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- 35,230 16.4 39,011 18.1 149,162 17.3 37,473 18.5 (1,538) (3.9) 2,243 6.4 Other open platform products Software licenses - - 21 0.0 125 0.0 21 0.0 - - 21 - Maintenance and subscriptions 1,881 0.9 1,979 0.9 7,592 0.9 1,732 0.9 (247) (12.5) (149) (7.9) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- 1,881 0.9 2,000 0.9 7,717 0.9 1,753 0.9 (247) (12.4) (128) (6.8) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Total open platform solutions 37,111 17.3 41,011 19.0 156,879 18.2 39,226 19.4 (1,785) (4.4) 2,115 5.7 --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Identity and security management Identity, access and compliance management Software licenses 5,531 2.6 10,360 4.8 31,908 3.7 7,132 3.5 (3,228) (31.2) 1,601 28.9 Maintenance and subscriptions 20,604 9.6 19,606 9.1 80,340 9.3 22,357 11.0 2,751 14.0 1,753 8.5 --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- 26,135 12.2 29,966 13.9 112,248 13.0 29,489 14.6 (477) (1.6) 3,354 12.8 Other identity and security management Software licenses 436 0.2 426 0.2 1,965 0.2 177 0.1 (249) (58.5) (259) (59.4) Maintenance and subscriptions 1,715 0.8 1,781 0.8 6,837 0.8 1,323 0.7 (458) (25.7) (392) (22.9) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- 2,151 1.0 2,207 1.0 8,802 1.0 1,500 0.7 (707) (32.0) (651) (30.3) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Total identity and security management 28,286 13.2 32,173 14.9 121,050 14.0 30,989 15.3 (1,184) (3.7) 2,703 9.6 --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Systems and resource management Software licenses 9,136 4.3 8,623 4.0 33,806 3.9 6,130 3.0 (2,493) (28.9) (3,006) (32.9) Maintenance and subscriptions 31,116 14.5 31,812 14.8 126,963 14.7 32,320 16.0 508 1.6 1,204 3.9 --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Total systems and resource management 40,252 18.7 40,435 18.8 160,769 18.6 38,450 19.0 (1,985) (4.9) (1,802) (4.5) Total security, management and operating platforms 105,649 49.2 113,619 52.7 438,698 50.9 108,665 53.7 (4,954) (4.4) 3,016 2.9 Collaboration solutions OES and NetWare-related Software licenses 3,977 1.9 5,504 2.6 20,232 2.3 4,113 2.0 (1,391) (25.3) 136 3.4 Maintenance and subscriptions 40,176 18.7 38,080 17.7 157,524 18.3 37,582 18.6 (498) (1.3) (2,594) (6.5) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- 44,153 20.5 43,584 20.2 177,756 20.6 41,695 20.6 (1,889) (4.3) (2,458) (5.6) Collaboration Software licenses 3,136 1.5 3,827 1.8 14,822 1.7 1,702 0.8 (2,125) (55.5) (1,434) (45.7) Maintenance and subscriptions 21,791 10.1 20,477 9.5 85,123 9.9 19,826 9.8 (651) (3.2) (1,965) (9.0) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- 24,927 11.6 24,304 11.3 99,945 11.6 21,528 10.6 (2,776) (11.4) (3,399) (13.6) Other collaboration solutions Software licenses 6,051 2.8 2,621 1.2 14,061 1.6 1,918 0.9 (703) (26.8) (4,133) (68.3) Maintenance and subscriptions 6,302 2.9 7,156 3.3 27,204 3.2 6,338 3.1 (818) (11.4) 36 0.6 --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- 12,353 5.7 9,777 4.5 41,265 4.8 8,256 4.1 (1,521) (15.6) (4,097) (33.2) Total collaboration solutions 81,433 37.9 77,665 36.0 318,966 37.0 71,479 35.3 (6,186) (8.0) (9,954) (12.2) Total software licenses, maintenance and subscriptions Software licenses 28,267 13.2 31,382 14.6 116,919 13.6 21,193 10.5 (10,189) (32.5) (7,074) (25.0) Maintenance and subscriptions 158,815 73.9 159,902 74.2 640,745 74.3 158,951 78.5 (951) (0.6) 136 0.1 --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Total product revenue 187,082 87.1 191,284 88.7 757,664 87.9 180,144 89.0 (11,140) (5.8) (6,938) (3.7) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Services 27,789 12.9 24,351 11.3 104,521 12.1 22,222 11.0 (2,129) (8.7) (5,567) (20.0) --------- ----- --------- ----- ----------- ----- --------- ----- ---------- ------- ---------- ------- Total net revenue $ 214,871 100.0 $ 215,635 100.0 $ 862,185 100.0 $ 202,366 100.0 $ (13,269) (6.2) $ (12,505) (5.8) ========= ===== ========= ===== =========== ===== ========= ===== ========== ======= ========== =======
Page 11 of 11 Novell, Inc. Major IT Software and Solutions Included Within Reported Line Items Security, Management and Operating Platforms Open Platform Solutions Linux Platform Products > SUSE LINUX Enterprise Server > SUSE LINUX Enterprise Desktop Other Open Platform Products > 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 Collaboration Solutions Open Enterprise Server and NetWare-Related > Open Enterprise Server (OES) > NetWare > Cluster Services Collaboration > GroupWise > Teaming + Conferencing Other Collaboration Solutions > BorderManager Services > Professional Services > Technical Support Services > Training Services