Weakness in corporate spending on infrastructure software led Novell Inc to report revenue and income below analysts’ estimates last week though CEO Jack Messman insists it has transitioned to “growth company status.”
In its third quarter to July 31, it turned a net loss of $23.7m into income of $28.8m on revenue 7.7% higher at $304.6m. The market had been expecting revenue of $315m and pro forma earnings per share of $0.06, while the company reported $0.04.
Messman acknowledged that revenue was not as strong as the company would have liked but said its SUSE Linux business performed well and was instrumental in positioning Novell as a strategic vendor to large enterprises.
He insisted Linux would significantly disrupt the historical order in the information technology market to the benefit of corporations and consumers.