Novell posts wider 4Q loss on charges

AP News
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Posted: Dec 03, 2009 6:47 PM

Novell Inc., which sells computer-networking software and technology services, posted a larger quarterly loss Thursday, hurt by lower revenue and hefty charges to write down the value of certain assets.

For the three months ended Oct. 31, the company posted a loss of $255.7 million, or 74 cents per share, compared with a loss of $16.3 million, or 5 cents per share, in the same period a year earlier.

Excluding items, most notably a $279 million impairment charge, the company earned $38 million, or 11 cents per share, in the latest quarter.

Revenue fell 12 percent to $215.6 million from $244.7 million.

Analysts, on average, were expecting a profit of 7 cents per share on sales of $215.7 million, according to a poll by Thomson Reuters.

The company said the year was a challenging one in terms of revenue, but the company worked to improve its cost structure. Novell forecast revenue of $200 million to $210 million for the current quarter, which is below analysts' expectations of $214.2 million.

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For the full year, Novell posted a loss of $212.7 million, or 62 cents per share, compared with a loss of $8.7 million, or 4 cents per share, in the previous year. Adjusted earnings totaled 34 cents per share.

Revenue fell 10 percent to $862.2 million from $956.5 million.

Shares fell 14 cents, or 3.5 percent, to $3.90 in after-hours trading, having closed earlier up 4 cents at $4.04.