Novell sales show no growth but losses shrink slightly

Novell expects steady business flow from developing markets

Software supplier Novell has posted its results for the fourth fiscal quarter of 2008, reporting net revenue of $245m (£167.1m), showing no growth from the same period in 2007.

For the period ending 31 October, the firm posted a net loss of $16.3m (£11.1m), compared with a loss of $17.9m (£12.2m) last year. Revenue dropped slightly to $244.7m (£166.8m) from $244.9m (£167m) in 2007.

Novell reported a rise in product revenue from open source platform services of 6.1 per cent, but the gains were offset by a 26 per cent drop in income originating from services.

Financial results for the firm include a $14m (£9.54m) write-down on auction-rate securities.

Novell chief executive Ron Hovsepian said the company had completed a two-year transformation plan intended to reposition the firm in the infrastructure software market.

"We have a large recurring revenue stream, a strong balance sheet, expanding partnerships and excellent products in broad and growing markets which we believe positions us well in this challenging environment," he said.