Novell is on the road to recovery
Results Novell has made a strong rebound from its losses last year, found from a period of belt-tightening.
Novell is beginning to claw its way back from huge losses, reportingfound from a period of belt-tightening. an upturn in its latest results which stem from a clampdown on excessive spending and higher product demand from the channel.
In its fourth quarter results ended 31 October, the Utah-based vendor posted $269 million turnover and a net income of $7 million. The figures showed an overall decrease of $26 million in costs and expenses, including a drop in investment in sales and marketing to $101 million this quarter, from last years' figure of $143 million. Its year end figures showed $1 billion revenue and a net loss of $78 million.
Andrew Sadler Smith, UK country manager at Novell, agreed that the vendor had previously intended to invest more in marketing but said: 'We had spent alot on this area but it wasn't well focused.'
He added: 'Handling expenses is all about good business management and there had not been enough concentration on expenses.'
According to Novell's worldwide figures, reseller business accounted for 54 per cent of overall sales in Q4. The remainder of sales is generated through master licensing agreements, which Novell sell direct but are fulfilled via resellers. According to Murray Treece, Novell UK channel sales director, 98 to 99 per cent of sales in the UK are through the channel.
The latest results mark a departure from Novell's Q3 results which showed a $122 million loss, including a $55 million charge for restructuring.
Commenting on the year ahead, Sadler Smith said: 'BorderManager, released this year is starting to take root, so we have to wait for sales to come in.' He added: ' We are on track but don't expect too much too soon.'