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Novell spills sales after pipe breakage

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SUSE

Novell's plan to shift more of its sales through channel partners has coincided with the economic meltdown, and the combination caused the company's revenues to slip a gear in its fiscal first quarter ended in January.

For the quarter, Novell's sales fell by 7 per cent to $214.9m and were hurt by a dramatic drop off in software license sales, which fell by 29.7 per cent to $28.3m. Services sales at the company fell even more dramatically, down 31.7 per cent to $27.8m, while maintenance and subscription sales helped offset declines a little by growing 5.8 per cent to $158.8m. Net income fell by 36.5 per cent, to $10.7m, and what is immediately clear is that if Microsoft had not extended its SUSE Linux coupon deal with a $100m extension last year and agreed to kick in $25m this quarter, Novell would be at a loss. Quite literally.

And probably making the kind of layoffs that have been rumored but have not occurred. Novell's headcount was 4,000 at the end of the fourth quarter of fiscal 2008 and stood at 3,900 as the first fiscal first quarter of 2009 closed.

That's exactly what Novell has said publicly it would do. But that is a net employee headcount change.

rest here




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