Friday, August 22, 2003

CRN : Breaking News : Novell Posts $12M Loss, Axes 10 Percent of Workforce

CRN : Breaking News : Novell Posts $12M Loss, Axes 10 Percent of Workforce "Novell reported a $12 million loss and major layoffs on flat revenue for its third quarter that ended July 31, a slide backward from the $10 million profit it saw during the same quarter a year ago.
On Thursday, the Provo, Utah-based company said it lost 3 cents per share during the third fiscal quarter on revenue of $283 million, which was up slightly from the $282 million posted during the same quarter in 2002.
As a result of its continuing economic downturn, Novell said it decided to cut nearly 10 percent of its workforce this quarter, or 600 positions. The reduction in operating expenses will save Novell $75 million, the bulk of which will benefit the company's bottom line in the first fiscal quarter of 2004, executives said.
Despite the CEO's comments, sources close to the company said Messman's right-hand man, Chris Stone, vice chairman of the Office of the CEO, has been known to say often that the company's NetWare franchise is over and that Linux and Web services are the future.
The messaging is somewhat dangerous, considering that 70 percent of the company's revenue comes from NetWare products, training, technical support and maintenance, sources said."

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