Novell Reports Financial Results for Second Fiscal Quarter 2005

Novell Reports Financial Results for Second Fiscal Quarter 2005

Novell, Inc. (NASDAQ:NOVL) today announced financial results for its second fiscal quarter ended April 30, 2005. For the quarter, Novell reported revenues of $297 million, compared to revenues of $294 million for the second fiscal quarter 2004. Net loss available to common stockholders in the second fiscal quarter 2005 was $16 million, or a $0.04 loss per diluted common share. This compared to a net loss available to common stockholders of $15 million, or a $0.04 loss per diluted common share, for the second fiscal quarter 2004.

On a non-GAAP basis, adjusted net income available to common stockholders for the second fiscal quarter 2005 was $1 million, or $0.00 per diluted common share, which excludes $6 million of restructuring and acquired in-process research and development expenses, $1 million of long-term investment impairments and a net $11 million for income taxes related to non-GAAP adjustments. This compares to non-GAAP adjusted net income available to common stockholders for the second fiscal quarter 2004 of $14 million, or $0.03 per diluted common share, which excludes the effect of a preferred stock deemed dividend of $26 million, restructuring expenses of $5 million, investment impairments of $1 million and a $2 million gain on a sale of property, plant and equipment. Full details on Novell’s reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial schedules that are a part of this release.

In the second fiscal quarter 2005, foreign currency exchange rates favorably impacted total revenue by approximately $8 million year-over-year. Foreign currency exchange rates favorably impacted net income by $2 million year-over-year.

During the second fiscal quarter 2005, Novell recognized revenue of $8 million from subscriptions to SUSE™ LINUX Enterprise Server (SLES). Sales of subscriptions to SUSE LINUX Enterprise Server totaled 19,000 units in the quarter.

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