Novell has managed to beat Wall Street expectations by exceeding sales targets for its flagship NetWare 5 network OS, posting a 20 per cent revenue increase for the second fiscal quarter.
The vendor shifted $169 million of NetWare server software during the quarter ended 30 April - an increase of 41 per cent over the previous year. Sales of services, training and consulting rose the fastest, at 47 per cent, to $44 million.
Novell saw turnover for the period grow to $316 million from $262 million last year, while net income leapt 106 per cent to $68 million or $0.19 earnings per share. The First Call analysts' consensus had expected earnings per share of 10 cents.
EMEA enjoyed the strongest sales, up 35 per cent to $105 million, but Novell said it was starting to see improvements in Asia Pacific, where sales grew 23 per cent to $26 million.
Eric Schmidt, chief executive of Novell, said: 'Novell is on its way to becoming a growth company again. We had planned for growth, but the market's response to NetWare 5 has exceeded our plans.'
Analysts believe NetWare 5's uptake has increased because it fully supports IP rather than the proprietary IPX protocol. It is also aided by widespread acceptance of Novell Directory Services, which first appeared in version 4, while Novell itself admits it is easier to upgrade to NetWare 5 than 4.
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