Earnings roundup

Sears' second-quarter profit plunged 62 percent despite a restructuring aimed at drawing back shoppers. (George Frey/Bloomberg News)

Netezza Corp., the maker of a data-storage appliance for customers including Amazon.com, reported its fourth consecutive quarterly profit on a gain in sales.

Net income of $3.14 million, or 5 cents a share, for the second quarter compares with a net loss of $1.1 million, or 20 cents, a year earlier, the Marlborough company said. Sales rose 66 percent to $47 million, beating the $40.8 million average estimate of six analysts surveyed by Bloomberg.

Netezza's investments in international markets are paying off this year, as the company "will see an ever-increasing percentage of business" from outside North America, chief financial officer Patrick Scannell said.

Profit, excluding some items, of 8 cents a share beat the 6-cent average estimate of five analysts surveyed by Bloomberg.

The company raised its projection for sales in the year ending in January 2009 to $182 million from $172 million. (Bloomberg)

Novell Inc., the second-largest US seller of Linux software, reported a wider third-quarter loss because of a charge related to investments.

The net loss of $15.1 million, or 4 cents a share, compared with a loss of $3.68 million, or 1 cent, a year earlier, Waltham-based Novell said.

Novell slashed about 10 percent of its workforce last year, moved costly consulting tasks to partner companies, and started selling more products online and over the phone. The company blamed the third-quarter loss on a $15 million impairment charge related to its auction-rate securities.

Excluding some costs, profit of 6 cents a share in the period ended July 31 beat the 5-cent average projection of analysts. Sales rose 3.5 percent to $245.2 million, also topping analysts' estimates.

Novell predicted annual sales of $940 million to $970 million, reiterating a previous forecast. (Bloomberg)

Beleaguered retailer Sears Holdings Corp. reported a hefty drop in second-quarter profit as sales slumped, despite a restructuring aimed at drawing back shoppers.

The company led by financier Edward Lampert also delivered a downbeat outlook, predicting sales and gross profit margins will feel continued pressure from the sluggish economy.

The performance was the latest in a string of dismal news for the operator of Sears and Kmart.

Earnings were $65 million, or 50 cents per share, in the three months ended Aug. 2. That's down 62 percent from year-ago profit of $173 million, or $1.15 per share. Excluding the effect of the reversal of a $62 million reserve item, earnings per share were 21 cents.

Revenue fell to $11.76 billion from $12.26 billion a year earlier. Same-store sales, or sales at stores opened at least a year, dropped 6.2 percent in the United States. Same-store sales are considered a key indicator of a retailer's health.

Analysts surveyed by Thomson Reuters expected 33 cents per share on revenue of $11.7 billion. Those estimates typically exclude one-time items. (AP)

Dell Inc., the world's second-largest personal-computer maker, posted profit that trailed analysts' projections and said a slowdown in technology spending is expanding into Europe and Asia.

Second-quarter net income fell 17 percent to $616 million, or 31 cents a share, from $746 million, or 33 cents, a year ago. That missed the 36-cent average of estimates compiled by Bloomberg. Sales for the period ended Aug. 1 rose 11 percent to $16.4 billion.

Dell said it sees "continued conservatism" in US spending, and that it has spread to Western Europe and some Asian countries.

Excluding some costs, profit was 33 cents a share, also short of the average analyst projection.

Sales to commercial clients in Asia rose 16 percent to $2.05 billion, slower than the 19 percent growth in the first quarter. Sales to corporate customers in Europe, the Middle East, and Africa advanced 11 percent to $3.5 billion, short of the 15 percent increase in the previous period. (Bloomberg)