Novell's Q3 results way down on predictions

Novell's Q3 results way down on predictions

Novell has performed significantly worse than expected in its third quarter with revenues for the period ending July 31 of $US90 million, generating a net loss of $US122 million.

The company said that much of the loss is due to its plans announced in late May to lower product inventories in the distribution channel and cut 1000 jobs.

These moves are aimed at saving the com-pany $US100 million annually, beginning in the fourth fiscal quarter of 1997, a Novell statement said. The restructuring charge to bring the company's headcount down to about 4800 contributed $US55 million to the after tax loss in the third quarter.

Chairman and CEO Eric Schmidt said in a statement that the aggressive steps taken by Novell mean that "comparisons with previous periods are not indicative of Novell's market strength or opportunities".

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