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Novell profit slips amid uncertainty

By Associated Press
August 27, 2010

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WALTHAM — Novell Inc., a maker of networking software, said its quarterly net income fell as revenue dropped amid customer uncertainty over the company’s possible sale.

Net income in the three months to July 31 fell to $15.7 million, or 4 cents a share, from $16.7 million, or 5 cents, a year earlier. Revenue dropped 8 percent to $199 million.

Adjusted for one-time items, earnings fell to 6 cents a share, narrowly missing the 7 cents a share expected on average by analysts polled by Thomson Reuters.

Chief executive Ron Hovsepian said the revenue came in low mainly because customers were uncertain about the ongoing review by the company’s board to seek ways to enhance shareholder value.

The board began the review in March after rejecting a $2 billion takeover offer from private equity firm Elliott Associates LP.