Novell Swings to 4Q Profit From Loss
Novell Inc., which provides computer networking and Linux operating systems, on Tuesday said it expects to swing to a profit in the fiscal fourth quarter, helped by lower costs. However, sales missed estimates and the company forecast 2007 revenue below Wall Street's consensus, sending shares lower aftermarket.
Final results are on hold while the company completes a review of its historical stock options practices.
After paying preferred dividends, the company turned a quarterly profit of $23.7 million, or 6 cents per share, compared with a year-ago loss of $5 million, or a penny per share. Adjusted to exclude certain items, per-share earnings were 5 cents in the recent quarter versus income of 7 cents a year ago.
The company said it cut operating costs 22 percent to $165.5 million, which helped boost earnings in the latest period.