Novell revenue up, net income loss at $15 million

Novell Thursday posted a net income loss of $15 million for its fiscal third quarter fueled by a charge related to its "auction-rate securities."

On the positive side, however, the company posted revenue growth of 3.5%, climbing to US$245.2 million in the quarter compared to US$236.8 million in the same quarter a year ago.

The company beat Wall Street's expectation of US$241.4 million, according to Thomson Reuters.

Novell said the US$15 million loss was the result of an "impairment charge."

Novell also reported revenue of US$33 million from its Open Platform Solutions group. The company said $31 million was generated by its Linux platform products, a 30% increase over the same quarter in 2007.

Revenue from its Identity and Security Management segment was US$37 million, with Novell's access management tools accounting for US$34 million. Systems and Resource Management revenue hit US$47 million, a 25% increase over a year ago. Workgroup revenue was down 1% to US$92 million.

In a statement, Novell president and CEO Ron Hovsepian said the company had another quarter of strong product revenue and expanding operating margins and predicted sustained growth in 2009.

The company also issued guidance for the full fiscal year saying net revenue is expected to come in at $940 million to $970 million.

Earlier this month, Microsoft said it was investing up to another $100 million in its on-going interoperability and collaboration partnership with Novell.