Novell has reported that its revenue for both the fourth quarter and fisal 2008 have improved, signalling the success of its two-year transformation plan which is now in place.

For the quarter, ended 31 October, Novell reported net revenue of $245-million, consistent with the fourth fiscal quarter of 2007. Loss from operations for the fourth fiscal quarter of 2008 was $6-million, compared to a loss from operations of $13-million for the fourth fiscal quarter of 2007.
Net loss in the fourth fiscal quarter of 2008 was $16-million, or $(0.05) per share, which included a $14-million impairment charge related to the company's auction-rate securities. This compares to a net loss of $18-million, or $(0.05) per share, for the fourth fiscal quarter of 2007.
In the fourth fiscal quarter of 2008, foreign currency exchange rates did not materially impact net revenue and favorably impacted operating expenses and loss from operations by $1-million compared to the same period last year.
For the full fiscal year 2008, Novell reported net revenue of $957-million and income from operations of $5-million. Comparatively, net revenue for the full fiscal year 2007 was $932-million and the loss from operations was $56-million.
Net loss for the full fiscal year 2008 was $9-million, or $(0.02) per share, which included a $29-million impairment charge related to the company's auction-rate securities. This compares to a net loss of $44-million, or $(0.13) per share, for the full fiscal year 2007.
In the full fiscal year 2008, foreign currency exchange rates favorably impacted net revenue by approximately $22-million, negatively impacted operating expenses by approximately $22-million and did not materially impact income from operations compared to the same period last year.
For the fourth fiscal quarter of 2008, product revenue increased 6% which was offset by a services revenue decline of 26%, resulting in total revenue that is consistent with the same period last year. Novell reported $36 million of product revenue from Open Platform Solutions, of which $33-million was from Linux Platform Products, up 33% compared to the same period last year.
Product revenue from Identity and Security Management was $37-million, of which Identity and Access Management was $35-million, up 11% compared to the same period last year. Product revenue from Systems and Resource Management was $45-million, up 15% compared to the same period last year. Workgroup product revenue of $92-million decreased 6% compared to the same period last year.
For the full fiscal year 2008, product revenue increased 8%, which was partially offset by a services revenue decline of 20% such that total revenue increased 3% compared to the full fiscal year 2007.
Novell reported $129-million of product revenue from Open Platform Solutions, of which $120 million was from Linux Platform Products, up 38% compared to last year.
Product revenue from Identity and Security Management was $137-million, of which Identity and Access Management was $124-million, up 15% compared to last year. Product revenue from Systems and Resource Management was $170-million, up 15% compared to last year. Workgroup product revenue of $366-million decreased 2% compared to last year.
"I am pleased with our fourth quarter and annual product revenue and non-GAAP operating margin results.
"We have substantially completed our two-year transformation, repositioning Novell as a leader in infrastructure software," says Ron Hovsepian, president and CEO of Novell. "We have a large, recurring revenue stream, a strong balance sheet, expanding partnerships and excellent products in broad and growing markets which we believe positions us well in this challenging environment."