Novell reports healthy operating margins
Novell’s quarterly results shows a consistent improvement in operating margins as well as a significant increase in revenues drawn from its Linux platform products.
Novell announced its third quarter financial results today, revealing year-on-year growth in its operating margins, despite a decline in its net revenue from $245 million in quarter three of 2008 to $216 million this quarter.
The report showed that GAAP income from operations for the third fiscal quarter of 2009 was $21 million - up from $1 million in the same quarter last year.
Novell also posted $35 million in cash flow from operations, a $6 million improvement on the same period last year.
"Operating margin continued to expand year-over-year due to diligent expense management, however revenue performance was similar to many companies in the software industry," said Ron Hovsepian, president and chief executive of Novell, in a statement.
Third quarter currency exchange rates had a negative impact on net revenue by $6 million when compared to last year. The same exchange rates improved operating expenses by $8 million and income from operations by $2 million.
Novell posted $30 million in revenue from its Identity and Security Management operations, $28 million of which was from its Identity, Access, and Compliance Management operations - a 16 per cent decline from last year.
Additionally, it reported a 15 per cent decline in revenue from its System and Resource Management operations with third quarter results of $40 million.
"We remain focused on delivering strong operating margins even as we continue to invest to generate long-term revenue growth," said Hovsepian.
Unlocking collaboration: Making software work better together
How to improve collaboration and agility with the right techDownload now
Four steps to field service excellence
How to thrive in the experience economyDownload now
Six things a developer should know about Postgres
Why enterprises are choosing PostgreSQLDownload now
The path to CX excellence for B2B services
The four stages to thrive in the experience economyDownload now