Novell is actually doing worse
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| Author | Content |
|---|---|
| Sander_Marechal May 31, 2007 9:22 AM EDT |
Novell is doing quite badly if you think about it. A couple of days ago they were trumpetting that their deal with MS was a good one because MS is now the most important revenue channel for Novell. Contrast this with the reported losses in this article. Get it? If MS has become Novell's biggest revenue stream and they *still* do worse than last year, how many customers have they lost? Lots of them. More than MS and their revenue can make up for. |
| number6x May 31, 2007 9:37 AM EDT |
The article leaves out the fact that Novell is restating $19M in finances due to an internal review of how inside stock options were accounted for. Kind of a big omission However, the article is correct in regards to Novell's Linux income. If you remove the Microsoft money Novell is counting as Linux income Novell's Linux sales were lower this quarter than a year ago. That is not good for Novell. Unless they expect Microsoft to be their only Linux customer that is. That reminds me, the new fedora 7 is out. I haven;t really used Red Hat since 4.2. Since they turned down the deal with MS, maybe I should give the new version a spin. |
| peragrin May 31, 2007 9:38 AM EDT |
Will someone double check my math? 49,000 sold out of a possible 70,000 is roughly 70%. Yet they have only earned 38% of the income on those sales? Was there a by one get one free sale? |
| jrm May 31, 2007 10:39 AM EDT |
>The article leaves out the fact that Novell is restating $19M in finances due to an internal review of how inside stock options were accounted for. Excellent point. That WOULD tend to impact the bottom line. Let me guess... their internal review showed instances of stock options backdating but no evidence of wrongdoing. (It's amazing how many companies were able to successfully pick the stock market highs. These guys should be running mutual funds.) |
| jdixon May 31, 2007 11:19 AM EDT |
> Novell is doing quite badly if you think about it. That's debatable. For an alternative view, see: http://www.thestreet.com/_iwon/newsanalysis/techsoftware/103... Quoting briefly, for those with little interest in stock analysis: Before items, the Waltham, Mass.-based company reported a profit of $15.9 million, or 5 cents a share, compared with when net income was $6.7 million and EPS was 2 cents. Analysts were expecting earnings before items of a penny a share. |
| jrm May 31, 2007 11:32 AM EDT |
>Analysts were expecting earnings before items of a penny a share. Somebody must agree with the analysts. Novell's stock price has gone up today. |
| jdixon May 31, 2007 11:53 AM EDT |
> Let me guess... their internal review showed instances of stock options backdating but no evidence of wrongdoing. (It's amazing how many companies were able to successfully pick the stock market highs. These guys should be running mutual funds.) I haven't checked, but I'd guess you're correct about the first and I'd agree with the second. |
| jdixon Jun 01, 2007 6:23 PM EDT |
Re-iterating the above: > Novell has also recently completed its stock option self-audit. The company's auditors did not find any evidence of intentional wrongdoing by any former or current Novell employees, officers or directors. However, it also found that Novell had used incorrect measurement dates for some of the stock-based compensation awards granted during the review period. This from the e-week article currently in the news queue. Looks like you nailed it, jrm. |
| jrm Jun 01, 2007 8:29 PM EDT |
The odds were overwhelmingly in my favor. Statistical evidence shows that options backdating was common, but it's difficult to prove in any single case. And to be fair, it's probably not even illegal if you disclose it. The secret of life is honesty and fair dealing. If you can fake that, you've got it made. -Groucho Marx |
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