Microsoft's deal with Novell to resell SUSE Linux may be controversial, but it's looking like a boon for Novell. In fact, it's just about the only bright spot the Novell has right now.

Novell reported its fiscal first quarter figures last night. The company reported a loss from continuing operations of $20 million, or 6 cents a share, on revenue of $230 million. The results, which missed Wall Street estimates and reversed a profit a year ago, are preliminary because Novell is examining its stock based compensation practices.

Overall revenue declined 5 percent, but Novell's Linux business surged. In fact, most of the questions on Novell's earnings conference call revolved around the company's deal with Microsoft.

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