EX-99.1 2 q111_ex-99.htm NOVELL, INC. Q1 FY11 PRESS RELEASE q111_ex-99.htm
 
 
 
 


 
FOR IMMEDIATE RELEASE
 
March 3, 2011
 
Novell Reports Financial Results for First Fiscal Quarter 2011
 
WALTHAM, Mass. March 3, 2011 - Novell, Inc. (NASDAQ: NOVL) today announced financial results for its first fiscal quarter ended January 31, 2011. For the quarter, Novell reported net revenue of $191 million. This compares to net revenue of $202 million for the first fiscal quarter of 2010. GAAP income from operations for the first fiscal quarter of 2011 was $12 million. This compares to GAAP income from operations of $21 million for the first fiscal quarter of 2010. GAAP net loss in the first fiscal quarter of 2011 was $18 million, or a $0.05 loss per share, which included a $31 million net tax charge in connection with the planned repatriation of a majority of non-U.S. cash. This compares to GAAP net income of $20 million, or $0.06 per share, for the first fiscal quarter of 2010.  Foreign currency exchange rates negatively impacted revenue and positively impacted operating expenses by $1 million and did not materially impact income from operations year-over-year.
 
On a non-GAAP basis, income from operations for the first fiscal quarter of 2011 was $31 million. This compares to non-GAAP income from operations of $33 million in the same period last year. Non-GAAP net income for the first fiscal quarter of 2011 was $26 million, or $0.07 per share. This compares to non-GAAP net income of $25 million, or $0.07 per share, for the first fiscal quarter of 2010. A reconciliation of GAAP to non-GAAP results is provided in the financial schedules as part of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
 
Cash, cash equivalents and short-term investments were $1.1 billion at January 31, 2011, consistent with last quarter. Days sales outstanding in accounts receivable was 42 days at the end of the first fiscal quarter of 2011, down from 50 days at the end of the year-ago quarter. Total deferred revenue was $593 million at the end of the first fiscal quarter of 2011, down from $646 million at the end of the year-ago quarter. For the first fiscal quarter of 2011, cash flow from operations was $9 million. This compares to cash flow from operations of $5 million for the first fiscal quarter of 2010.
 
Further details on Novell's reported results are included in the financial schedules that are a part of this release.
 

 
 

 
Page 2 of 10
 
Non-GAAP Financial Measures
 
We supplement our consolidated unaudited condensed financial statements presented in accordance with GAAP with certain non-GAAP financial measures. These non-GAAP measures include adjusted income from operations, adjusted operating margin, adjusted net income and adjusted net income per share. We provide non-GAAP financial measures to enhance an overall understanding of our current financial performance and prospects for the future and to enable investors to evaluate our performance in the same way that management does. Management uses these same non-GAAP financial measures to evaluate performance, allocate resources, and determine compensation. The non-GAAP financial measures do not replace the presentation of our GAAP financial results, but they eliminate expenses and gains that are excluded from most analysts' consensus estimates, that are unusual, and/or that arise outside of the ordinary course of business, such as, but not limited to, those related to stock-based compensation, acquisition-related intangible asset amortization, restructuring, asset impairments, litigation judgments and settlements, strategic alternatives review, the sale of business operations, long-term investments, property, plant and equipment, and unusual and discrete income tax effects.
 
 
Legal Notice Regarding Forward-Looking Statements
 
This press release may include statements that are not historical in nature and that may be characterized as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to future financial and operating results, targets, and prospects; future opportunities; market leadership and positioning; short-term and long-term trends; the macroeconomic environment; customer priorities; timing of realization of projections; functionality, characteristics, quality and performance capabilities of Novell's products and technology; and results achievable and benefits attainable through deployment of Novell's products and provision of services. Forward-looking statements forecasting growth in financial metrics are predicated on assumptions regarding improvements in the overall economy and the markets served by Novell and in which Novell operates, the timing of which are impossible to accurately predict. Actual results may differ materially from the results discussed in or implied by such forward-looking statements, which are based upon information that is currently available to us and/or management’s current expectations and speak only as of the date hereof. We are subject to a number of risks, including, among others, the risk that our merger with Attachmate Corporation may be delayed or may not be consummated, the risk that the merger agreement may be terminated in circumstances that require Novell to pay Attachmate a termination fee of $60 million; risks related to the diversion of mangement's attention from Novell's ongoing business operations; risks regarding the failure of Attachmate to obtain the necessary financing to complete the merger; the effect of the announcement of the merger and the patent sale to CPTN Holdings LLC on Novell's business relationships (including, without limitation, partners and customers), operating results and business generally; and risks related to obtaining the requisite consents to the merger or the patent sale, including, without limitation, the timing (including possible delays) and receipt of regulatory approvals from various governmental entities (including any conditions, limitations or restrictions placed on these approvals) and the risk that one or more governmental entities may deny approval, as well as risks related to indirect sales, growth rates of our business units, renewal of SUSE® Linux Enterprise Server subscriptions with customers who have received certificates from Microsoft, decline rates of Open Enterprise Server and NetWare® revenue, development of products and services, the intelligent workload management market, software vulnerabilities, delays in product releases, reliance on open source software, adequacy of renewal rates, uncertain economic conditions, competition, rapid technological changes, failure to expand brand awareness, adequacy of technical support, pricing pressures, system failures, integration of acquisitions, industry consolidation, challenges resulting from a global business, foreign research and development operations, loss of key employees, intellectual property infringement, litigation matters, unpredictable financial results, impairments, the timing of revenue recognition, our investments and effective use of our cash.
 
 

 
 

 
Page 3 of 10
 
A detailed discussion of these and other factors that could affect our results is included in our SEC filings, including, but not limited to, our Annual Report on Form 10-K for the Fiscal Year Ended October 31, 2010 filed with the SEC on December 13, 2010, which may be obtained by calling (800) 317- 3195, or at our Investor Relations web page at: www.novell.com/company/ir.
 
 
We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any forward-looking statements contained in this press release to reflect any change of expectations with regard thereto or to reflect any change in events, conditions, or circumstances on which any such forward-looking statement is based, in whole or in part.
 
 
About Novell
 
Novell, Inc. (NASDAQ: NOVL), a leader in intelligent workload management, through WorkloadIQTM, helps organizations securely deliver and manage computing services across physical, virtual and cloud computing environments. We help customers reduce the cost, complexity, and risk associated with their IT systems through our solutions for identity and security, systems management, collaboration and Linux-based operating platforms. With our infrastructure software and ecosystem of partnerships, Novell integrates mixed IT environments, allowing people and technology to work as one. For more information, visit www.novell.com.
 


 
Copyright © 2011 Novell, Inc.  All rights reserved.  NetWare, Novell, the Novell Logo, the N Logo, and SUSE are registered trademarks and WorkloadIQ is a trademark of Novell, Inc. in the United States and other countries. All third party trademarks are the property of their respective owners.
 
 
 Press Contact:  Investor Relations Contact:
 Ian Bruce                                                      Robert Kain
 Novell, Inc.  Novell, Inc.
 Phone: 781-464-8034  Phone: 800-317-3195
 E-Mail: ibruce@novell.com  E-Mail: rkain@novell.com
 
 
 

 



Page 4 of 10
Novell, Inc.
Consolidated Unaudited Condensed Statements of Operations
(In thousands, except per share data)
             
             
   
Fiscal Quarter Ended
 
   
Jan 31, 2011
   
Jan 31, 2010
 
Net revenue:
           
Software licenses
  $ 20,387     $ 21,193  
Maintenance and subscriptions
    150,393       158,951  
Services (1)
    19,934       22,222  
Total net revenue
    190,714       202,366  
                 
Cost of revenue:
               
Software licenses
    1,520       1,688  
Maintenance and subscriptions
    20,819       22,572  
Services
    19,210       19,458  
Total cost of revenue
    41,549       43,718  
                 
Gross profit
    149,165       158,648  
                 
Operating expenses:
               
Sales and marketing
    67,256       68,916  
Product development
    38,365       39,702  
General and administrative
    20,818       25,827  
Other operating expenses (2)
    11,173       2,774  
Total operating expenses
    137,612       137,219  
                 
Income from operations
    11,553       21,429  
Operating margin %
    6.1 %     10.6 %
                 
Other income, net:
               
Interest income, net
    1,964       2,899  
Other income, net
    1,992       3,767  
Total other income, net
    3,956       6,666  
                 
Income before taxes
    15,509       28,095  
                 
Income tax expense
    33,451       7,906  
                 
Net (loss) income
  $ (17,942 )   $ 20,189  
                 
(Loss) income per share
  $ (0.05 )   $ 0.06  
                 
Weighted average shares
    352,001       349,144  
                 
                 
(1) Services includes professional services, technical support and training services.
         
(2) See Page 7 of 10 for a detail of other operating expenses.
               
                 

 
 

 


Page 5 of 10  
Novell, Inc.
 
Consolidated Unaudited Condensed Balance Sheets
 
(In thousands)
 
             
             
   
Jan 31, 2011
   
Oct 31, 2010
 
Assets
           
             
Current assets:
           
    Cash and cash equivalents
  $ 981,426     $ 685,594  
    Short-term investments
    150,009       441,096  
    Receivables, net
    89,465       171,607  
    Prepaid expenses
    15,280       16,233  
    Current deferred income taxes
    36,137       49,169  
    Other current assets
    21,126       33,725  
Total current assets
    1,293,443       1,397,424  
                 
Property, plant and equipment, net
    151,378       156,033  
Goodwill
    353,818       353,415  
Intangible assets, net
    26,988       28,746  
Deferred income taxes
    227,363       243,583  
Other assets
    48,013       46,797  
                 
Total assets
  $ 2,101,003     $ 2,225,998  
                 
                 
Liabilities and Stockholders' Equity
               
                 
Current liabilities:
               
    Accounts payable
  $ 30,102     $ 26,785  
    Accrued compensation
    49,319       83,181  
    Other accrued liabilities
    66,412       86,223  
    Deferred revenue
    448,744       487,590  
Total current liabilities
    594,577       683,779  
                 
Deferred income taxes
    7,622       7,622  
Other long-term liabilities
    35,997       35,655  
Long-term deferred revenue
    144,065       163,394  
                 
Total liabilities
    782,261       890,450  
                 
Stockholders' equity
    1,318,742       1,335,548  
                 
Total liabilities and stockholders' equity
  $ 2,101,003     $ 2,225,998  
                 

 
 

 


Page 6 of 10  
Novell, Inc.
 
Consolidated Unaudited Condensed Statements of Cash Flows
 
(In thousands)
 
             
             
   
Fiscal Quarter Ended
 
   
Jan 31, 2011
   
Jan 31, 2010
 
             
Cash flows from operating activities
           
Net (loss) income
  $ (17,942 )   $ 20,189  
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
               
Stock-based compensation expense
    6,060       6,450  
Depreciation and amortization
    7,347       7,437  
Change in accounts receivable allowances
    46       (1,209 )
Gain on sale of previously impaired investments
    -       (5,228 )
Deferred income taxes
    29,341       4,496  
Changes in assets and liabilities
    (15,685 )     (26,939 )
                 
Net cash provided by operating activities
    9,167       5,196  
                 
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (889 )     (8,128 )
Short-term investment activity
    284,703       11,998  
Long-term investment activity
    -       7,303  
Cash proceeds from sale of discontinued operations
    -       243  
Other
    (738 )     1,142  
                 
Net cash provided by investing activities
    283,076       12,558  
                 
Cash flows from financing activities
               
 Issuance of common stock
    1,366       832  
 Excess tax effects from stock-based compensation
    181       1  
                 
Net cash provided by financing activities
    1,547       833  
                 
Effect of exchange rate changes on cash
    2,042       (3,193 )
Increase in cash and cash equivalents
    295,832       15,394  
Cash and cash equivalents - beginning of period
    685,594       591,656  
                 
Cash and cash equivalents - end of period
  $ 981,426     $ 607,050  
                 
Revisions were made to prior period amounts in order to conform to the current period's presentation.
         
                 

 
 

 


Page 7 of 10  
Novell, Inc.
 
Unaudited Non-GAAP Adjusted Income From Operations
 
(In thousands)
 
             
             
   
Fiscal Quarter Ended
 
   
Jan 31, 2011
   
Jan 31, 2010
 
             
GAAP income from operations
  $ 11,553     $ 21,429  
                 
GAAP operating margin %
    6.1 %     10.6 %
                 
Adjustments:
               
Stock-based compensation expense:
               
Cost of revenue
    692       559  
Sales and marketing
    1,891       1,840  
Product development
    1,735       2,064  
General and administrative
    1,742       1,987  
Sub-total
    6,060       6,450  
                 
Acquisition-related intangible asset amortization:
         
Cost of revenue
    1,129       1,090  
Sales and marketing
    629       1,008  
Sub-total
    1,758       2,098  
                 
Other operating expenses (income):
               
Restructuring expense
    -       2,774  
Strategic alternatives review expense
    10,478       -  
Litigation related activity
    695       -  
Sub-total
    11,173       2,774  
                 
                 
Total operating adjustments
    18,991       11,322  
                 
Non-GAAP income from operations
  $ 30,544     $ 32,751  
                 
Non-GAAP operating margin %
    16.0 %     16.2 %
                     
                 
Novell, Inc.
Unaudited Non-GAAP Adjusted Net Income
(In thousands, except per share data)
                 
                 
   
Fiscal Quarter Ended
 
   
Jan 31, 2011
   
Jan 31, 2010
 
                 
GAAP net (loss) income
  $ (17,942 )   $ 20,189  
                 
                 
Operating adjustments (detailed above)
    18,991       11,322  
Non-operating expenses (income) adjustments:
               
Gain on sale of previously impaired investments
    -       (5,228 )
Sub-total
    -       (5,228 )
                 
Total pre-tax adjustments
    18,991       6,094  
                 
Income tax adjustments
    25,124       (1,475 )
                 
Total net adjustments
    44,115       4,619  
                 
Non-GAAP net income
  $ 26,173     $ 24,808  
                 
                 
GAAP net (loss) income per share
  $ (0.05 )   $ 0.06  
Total adjustments detailed above
    0.12       0.01  
                 
Non-GAAP net income per share
  $ 0.07     $ 0.07  
                 
                 
GAAP weighted average shares
    352,001       349,144  
                 
Change from basic to diluted weighted average shares
    4,326       -  
                 
Non-GAAP weighted average shares
    356,327       349,144  
                 

 
 

 


Page 8 of 10  
 Novell, Inc.
 
Consolidated Unaudited Condensed Segment Results
 
 (in thousands)
 
                                           
     Fiscal Quarter Ended January 31, 2011  
                                           
                                           
   
Security,
                                     
     Management and            Collaboration            Common              
   
Operating Platforms
   
%
   
Solutions
   
%
   
Unallocated
   
Total
   
%
 
Net revenue:
                                         
Software licenses
  $ 12,692       10.5     $ 7,695       10.9     $ -     $ 20,387       10.7  
Maintenance and subscriptions
    93,323       77.5       57,070       81.1       -       150,393       78.9  
Services
    14,357       11.9       5,577       7.9       -       19,934       10.5  
Total net revenue
    120,372       100.0       70,342       100.0       -       190,714       100.0  
                                                         
Cost of revenue:
                                                       
Software licenses
    1,145       1.0       240       0.3       135       1,520       0.8  
Maintenance and subscriptions
    13,381       11.1       6,290       8.9       1,148       20,819       10.9  
Services
    13,684       11.4       4,988       7.1       538       19,210       10.1  
Total cost of revenue
    28,210       23.4       11,518       16.4       1,821       41,549       21.8  
                                                         
Gross profit
    92,162       76.6       58,824       83.6       (1,821 )     149,165       78.2  
                                                         
Operating expenses:
                                                       
Sales and marketing
    51,681       42.9       13,055       18.6       2,520       67,256       35.3  
Product development
    28,615       23.8       8,015       11.4       1,735       38,365       20.1  
General and administrative
    12,275       10.2       6,801       9.7       1,742       20,818       10.9  
Other operating expenses
    -       -       -       -       11,173       11,173       5.9  
Total operating expenses
    92,571       76.9       27,871       39.6       17,170       137,612       72.2  
                                                         
Income (loss) from operations
  $ (409 )     (0.3 )   $ 30,953       44.0     $ (18,991 )   $ 11,553       6.1  
                                                         
                                                         

 
 
 
 


    Fiscal Quarter Ended October 31, 2010  
                                           
                                           
   
Security,
                                     
     Management and            Collaboration            Common              
   
Operating Platforms
   
%
   
Solutions
   
%
   
Unallocated
   
Total
   
%
 
Net revenue:
                                         
Software licenses
  $ 18,915       14.7     $ 12,341       15.8     $ -     $ 31,256       15.1  
Maintenance and subscriptions
    93,360       72.8       59,917       76.6       -       153,277       74.2  
Services
    16,044       12.5       5,934       7.6       -       21,978       10.6  
Total net revenue
    128,319       100.0       78,192       100.0       -       206,511       100.0  
                                                         
Cost of revenue:
                                                       
Software licenses
    1,938       1.5       408       0.5       192       2,538       1.2  
Maintenance and subscriptions
    14,546       11.3       6,822       8.7       1,149       22,517       10.9  
Services
    14,627       11.4       4,722       6.0       664       20,013       9.7  
Total cost of revenue
    31,111       24.2       11,952       15.3       2,005       45,068       21.8  
                                                         
Gross profit
    97,208       75.8       66,240       84.7       (2,005 )     161,443       78.2  
                                                         
Operating expenses:
                                                       
Sales and marketing
    52,139       40.6       12,687       16.2       3,015       67,841       32.9  
Product development
    31,239       24.3       8,328       10.7       2,151       41,718       20.2  
General and administrative
    13,419       10.5       7,413       9.5       2,820       23,652       11.5  
Other operating expenses
    -       -       -       -       6,225       6,225       3.0  
Total operating expenses
    96,797       75.4       28,428       36.4       14,211       139,436       67.5  
                                                         
Income (loss) from operations
  $ 411       0.3     $ 37,812       48.4     $ (16,216 )   $ 22,007       10.7  
                                                         
                                                         

 
 
 
 


    Fiscal Quarter Ended January 31, 2010  
                                           
                                           
   
Security,
                                     
     Management and            Collaboration            Common              
   
Operating Platforms
   
%
   
Solutions
   
%
   
Unallocated
   
Total
   
%
 
Net revenue:
                                         
Software licenses
  $ 13,460       10.8     $ 7,733       10.0     $ -     $ 21,193       10.5  
Maintenance and subscriptions
    95,205       76.4       63,746       82.0       -       158,951       78.5  
Services
    15,989       12.8       6,233       8.0       -       22,222       11.0  
Total net revenue
    124,654       100.0       77,712       100.0       -       202,366       100.0  
                                                         
Cost of revenue:
                                                       
Software licenses
    1,334       1.1       227       0.3       127       1,688       0.8  
Maintenance and subscriptions
    14,372       11.5       7,088       9.1       1,112       22,572       11.2  
Services
    14,122       11.3       4,926       6.3       410       19,458       9.6  
Total cost of revenue
    29,828       23.9       12,241       15.8       1,649       43,718       21.6  
                                                         
Gross profit
    94,826       76.1       65,471       84.2       (1,649 )     158,648       78.4  
                                                         
Operating expenses:
                                                       
Sales and marketing
    53,564       43.0       12,504       16.1       2,848       68,916       34.1  
Product development
    29,915       24.0       7,723       9.9       2,064       39,702       19.6  
General and administrative
    15,272       12.3       8,568       11.0       1,987       25,827       12.8  
Other operating expenses
    -       -       -       -       2,774       2,774       1.4  
Total operating expenses
    98,751       79.2       28,795       37.1       9,673       137,219       67.8  
                                                         
Income (loss) from operations
  $ (3,925 )     (3.1 )   $ 36,676       47.2     $ (11,322 )   $ 21,429       10.6  
                                                         
                                                         

 
 

 


Page 9 of 10  
Novell, Inc.
 
Unaudited Trended Segment Revenue by Software Licenses and Maintenance and Services
 
(In thousands)
 
                                                                         
                                                                         
                             Fiscal Year                        Change from  
     Q1 2010    
%
     Q4 2010    
%
     2010    
%
     Q1 2011    
%
   
Q4 2010 to Q1 2011
   
Q1 2010 to Q1 2011
 
Security, management and operating platforms
 
Open platform solutions
                                                                               
Linux platform products
                                                                               
Software licenses
  $ -       -     $ -       -     $ -       -     $ -       -     $ -       -     $ -       -  
Maintenance and subscriptions
    37,473       18.5       36,256       17.6       144,411       17.8       37,807       19.8       1,551       4.3       334       0.9  
      37,473       18.5       36,256       17.6       144,411       17.8       37,807       19.8       1,551       4.3       334       0.9  
Other open platform products
                                                                                               
Software licenses
    21       0.0       70       0.0       109       0.0       35       0.0       (35 )     (50.0 )     14       66.7  
Maintenance and subscriptions
    1,732       0.9       2,505       1.2       8,088       1.0       1,783       0.9       (722 )     (28.8 )     51       2.9  
      1,753       0.9       2,575       1.2       8,197       1.0       1,818       1.0       (757 )     (29.4 )     65       3.7  
                                                                                                 
                                                                                                 
Total open platform solutions
    39,226       19.4       38,831       18.8       152,608       18.8       39,625       20.8       794       2.0       399       1.0  
                                                                                                 
                                                                                                 
Identity and security management
                                                                                               
Identity, access and compliance management
                                                                                               
Software licenses
    7,132       3.5       10,912       5.3       34,508       4.3       5,715       3.0       (5,197 )     (47.6 )     (1,417 )     (19.9 )
Maintenance and subscriptions
    22,357       11.0       21,856       10.6       88,637       10.9       22,275       11.7       419       1.9       (82 )     (0.4 )
      29,489       14.6       32,768       15.9       123,145       15.2       27,990       14.7       (4,778 )     (14.6 )     (1,499 )     (5.1 )
Other identity and security management
                                                                                               
Software licenses
    177       0.1       393       0.2       1,416       0.2       137       0.1       (256 )     (65.1 )     (40 )     (22.6 )
Maintenance and subscriptions
    1,323       0.7       1,072       0.5       4,926       0.6       1,077       0.6       5       0.5       (246 )     (18.6 )
      1,500       0.7       1,465       0.7       6,342       0.8       1,214       0.6       (251 )     (17.1 )     (286 )     (19.1 )
                                                                                                 
                                                                                                 
Total identity and security management
    30,989       15.3       34,233       16.6       129,487       15.9       29,204       15.3       (5,029 )     (14.7 )     (1,785 )     (5.8 )
                                                                                                 
                                                                                                 
Systems and resource management
                                                                                               
Software licenses
    6,130       3.0       7,540       3.7       29,549       3.6       6,805       3.6       (735 )     (9.7 )     675       11.0  
Maintenance and subscriptions
    32,320       16.0       31,671       15.3       126,502       15.6       30,381       15.9       (1,290 )     (4.1 )     (1,939 )     (6.0 )
                                                                                                 
Total systems and resource management
    38,450       19.0       39,211       19.0       156,051       19.2       37,186       19.5       (2,025 )     (5.2 )     (1,264 )     (3.3 )
                                                                                                 
                                                                                                 
                                                                                                 
Total security, management and operating platforms
    108,665       53.7       112,275       54.4       438,146       54.0       106,015       55.6       (6,260 )     (5.6 )     (2,650 )     (2.4 )
                                                                                                 
                                                                                                 
Collaboration solutions
                                                                                               
OES and NetWare-related
                                                                                               
Software licenses
    4,113       2.0       6,128       3.0       20,831       2.6       3,223       1.7       (2,905 )     (47.4 )     (890 )     (21.6 )
Maintenance and subscriptions
    37,582       18.6       35,478       17.2       144,794       17.8       33,605       17.6       (1,873 )     (5.3 )     (3,977 )     (10.6 )
      41,695       20.6       41,606       20.1       165,625       20.4       36,828       19.3       (4,778 )     (11.5 )     (4,867 )     (11.7 )
Collaboration
                                                                                               
Software licenses
    1,702       0.8       3,271       1.6       9,555       1.2       1,842       1.0       (1,429 )     (43.7 )     140       8.2  
Maintenance and subscriptions
    19,826       9.8       18,867       9.1       77,282       9.5       18,255       9.6       (612 )     (3.2 )     (1,571 )     (7.9 )
      21,528       10.6       22,138       10.7       86,837       10.7       20,097       10.5       (2,041 )     (9.2 )     (1,431 )     (6.6 )
Other collaboration solutions
                                                                                               
Software licenses
    1,918       0.9       2,942       1.4       9,140       1.1       2,630       1.4       (312 )     (10.6 )     712       37.1  
Maintenance and subscriptions
    6,338       3.1       5,572       2.7       23,902       2.9       5,210       2.7       (362 )     (6.5 )     (1,128 )     (17.8 )
      8,256       4.1       8,514       4.1       33,042       4.1       7,840       4.1       (674 )     (7.9 )     (416 )     (5.0 )
                                                                                                 
                                                                                                 
Total collaboration solutions
    71,479       35.3       72,258       35.0       285,504       35.2       64,765       34.0       (7,493 )     (10.4 )     (6,714 )     (9.4 )
                                                                                                 
                                                                                                 
Total software licenses, maintenance and subscriptions
                                                                                               
Software licenses
    21,193       10.5       31,256       15.1       105,108       12.9       20,387       10.7       (10,869 )     (34.8 )     (806 )     (3.8 )
Maintenance and subscriptions
    158,951       78.5       153,277       74.2       618,542       76.2       150,393       78.9       (2,884 )     (1.9 )     (8,558 )     (5.4 )
Total product revenue
    180,144       89.0       184,533       89.4       723,650       89.1       170,780       89.5       (13,753 )     (7.5 )     (9,364 )     (5.2 )
                                                                                                 
Services
    22,222       11.0       21,978       10.6       88,221       10.9       19,934       10.5       (2,044 )     (9.3 )     (2,288 )     (10.3 )
                                                                                                 
Total net revenue
  $ 202,366       100.0     $ 206,511       100.0     $ 811,871       100.0     $ 190,714       100.0     $ (15,797 )     (7.6 )   $ (11,652 )     (5.8 )
                                                                                                 

 
 

 


   
   
   Page 10 of 10          
             
   
Novell, Inc.
         
   
Major IT Software and Solutions Included Within Reported Line Items
         
                     
                     
 
Security, Management and Operating Platforms
     
                     
   
Open Platform Solutions
         
                     
     
Linux Platform Products
         
                     
       
> SUSE LINUX Enterprise Server
     
       
> SUSE LINUX Enterprise Desktop
     
                     
     
Other Open Platform Products
       
                     
       
> SUSE Engineering
         
                     
                     
   
Identity and Security Management
       
                     
     
Identity, Access and Compliance Management
   
                     
       
> Identity Manager
         
       
> SecureLogin
         
       
> Access Manager
         
       
> Sentinel
         
                     
     
Other Identity and Security Management
     
                     
       
> eDirectory
         
                     
                     
   
Systems and Resource Management
       
                     
     
> ZENworks Suite
         
     
> ZENworks Patch Management
       
     
> ZENworks Asset Management
       
     
> ZENworks Linux Management
       
     
> ZENworks Configuration Management
     
     
> PlateSpin
           
     
> Novell Operations Center
         
                     
                     
 
Collaboration Solutions
           
                     
     
Open Enterprise Server and NetWare-Related
     
                     
       
> Open Enterprise Server (OES)
     
       
> NetWare
         
       
> Cluster Services
         
                     
     
Collaboration
           
                     
       
> GroupWise
         
       
> Vibe
           
                     
     
Other Collaboration Solutions
       
                     
       
> BorderManager
         
                     
                     
 
Services
               
                     
     
> Professional Services
         
     
> Technical Support Services
       
   
 
> Training Services