Novell narrowed its loss for the recent quarter as more business customers bought subscriptions for its network operating system software and as the company controlled sales costs.
For its fiscal third quarter, the company lost $3.4m, or one cent a share, compared to a loss of $6.5m, or 2 cent, a year ago.
Revenue rose $243.1m from $236.3m last year, beating analysts’ average target of $234.8m.
Driving the company’s improved bottom line was maintenance and subscription revenue, which rose to $124.8m from $117.5m year-over-year.
Notably, the company saw a 77% year-over-year increase in revenue for its Linux Platform Products, which came in at $21m. Linux Platform Products invoicing was $38m, up 95%.
Other subscription revenue saw more modest year-over-year gains: identity and security management revenue rose 2% to $30m from $27m; and systems and resource management sales grew 4% to $35m. Revenue from its workgroup business unit declined 2% to $83m.
We are encouraged by our Linux performance and the market’s continued enthusiasm for our desktop to datacenter strategy, said Novell chief executive Ron Hovsepian, in a statement.
Shares in the company rose more than 2% to close at $6.79 on the Nasdaq. They rallied another 2% or so to $6.95 in after-hours trading.