Novell has reported that it gained a profit in the fourth quarter of this year. It seems the company is ending what could be its final quarter as an independent company on a high.
This is because Novell is in the process of being acquired by Attachmate for $2.2 billion, with the sale expected to be signed, sealed and delivered in the first three months of 2011.
Novell reported sales of $206.5 million this quarter, down more than four percent from $215.6 million in the same quarter in 2009. However, it redeemed itself reporting a net profit of $322.2 million compared to a net loss of $255.7 million one year ago. This was largely thanks to an income tax benefit of $296.6 million.
Unfortunately not all parts of its business fared well. For the fourth quarter Novell’s security, management and operating platforms generated revenue of $128.3 million, which was down more than two percent from the $131.5 million reported last year.
Collaboration applications brought in revenue of $78.2 million, down seven percent from $84.2 million one year earlier. It also reported a downturn in its software license sales, which came in at $31.3m, a tiny percentage down from the same quarter in 2009
“I am pleased with our fourth quarter performance,” said Ron Hovsepian, president and CEO of Novell. “We continue to see strong performance from our Linux business with invoicing for Linux, excluding Microsoft certificates, up over 40 percent from the year-ago period and the prior fiscal year. We also saw some stabilisation in the collaboration solutions business with invoicing decreasing 3 percent over the year-ago period. In addition, we continue to invest in the in the business while improving our GAAP and non-GAAP operating margins, which were 11 percent and 19 percent, respectively, for the quarter. Finally, we were profitable on a GAAP net income basis for the quarter and for the full year, even excluding discrete tax items.”