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Novell Quarterly Profit Barely Tops Forecasts

May 24, 2000|Bloomberg News

Novell Inc. reported its fiscal second-quarter earnings just above diminished expectations as the business management software company struggled with sales force problems. Novell also said that its new worldwide sales chief resigned after less than two weeks on the job, and that it's reorganizing the company into four business groups to more closely follow product and customer lines. Former Lucent Technologies Inc. executive Nicholas Tiliacos, who joined Novell on May 10, left for personal reasons, the company said.

Excluding a one-time $35-million royalty from Caldera Systems Inc., Novell earned 2 cents a share in its latest quarter. Analysts expected 1 cent. Including the royalty, net income fell to $31 million, or 9 cents a share, from $38.7 million, or 11 cents, a year ago. Revenue fell 4% to $302 million. Novell had warned on May 2 that earnings would be much lower than forecasts of 16 cents a share because of a stumbling sales force and increased competition. Novell shares rose 81 cents to close at $9.75 on Nasdaq before the results were released.

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