Novell posts disappointing results

IT management software firm Novell seems to be feeling the effects of the recession, as it posted falling revenue and income for the first quarter 2009 compared to the same period last year.

The firm reported net revenue of US$215 (£150) million, US$16 (£11) million down on Q1 2008, while net income for Q1 2009 was US$11 (£8) million, or US$0.03 per share, a drop of US$6 (£4) million, or US$0.02 per share from 2008.

However, income from operations for the first fiscal quarter of 2009 was US$14 (£10) million, which is US$6 (£4) million more than the same time last year.

Workgroup products were the highest earning in the business, at US$81 (£56) million, followed by Systems and Resource Management at US$40 (£28) million and then Open Platform Solutions ($26 million).

“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 chief executive of Novell.

“We are confident about our long-term growth opportunities and remain committed to maintaining our target profitability levels.”

In the past month, Novell has sought to broaden its portfolio of security products with the acquisition of Fortefi, as well as announcing a new open source project, Moonlight, designed to allow Linux users to access Microsoft Silverlight content.

But the firm's employees have also been braced for further job cuts after an initial 100 cuts were announced earlier this month.