Novell Drops On Weak FQ3 Results
Shares of Novell Inc (NASDAQ: NOVL) fell after the company reported weaker-than-expected FQ3 results.
NOVL posted its FQ3 net income at $15.7 million, or $0.04 per share, down from $16.7million, or $0.05 per share, in the year-ago period. The company’s revenue fell to $199 million, from $216.1 million, in the year-ago quarter. Novell earned $0.06 per share, after excluding special items. However, analysts had expected the company to post earnings, excluding items, at $0.07 per share on $201.2 million in revenue.
Ron Hovsepian, President and CEO of Novell said, “Our third quarter revenue was below our initial expectations, which we believe is principally related to customer uncertainty associated with the Novell Board of Directors' ongoing review of various alternatives to enhance stockholder value as described in Novell's March 20, 2010 press release.” He added, “However, I am pleased that we achieved consistent profitability levels. The growth prospects of our target markets remain strong and our focus going forward is on returning to top line growth via execution of our differentiated strategy, WorkloadIQ™.”
NOVL’s shares moved down 0.18% to $5.63 in after-hours trading.
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