Novell sees 25 per cent growth in Linux sales

Revenue falls but profit is slightly up

Novell: Linux sales up

Novell has reported a year-on-year fall in second-quarter revenue, but a small rise in profit as a result of a 25 per cent growth in Linux product sales.

The software provider achieved revenue of $216m (£134m), down from $236m in the same period last year. Net income was up to $16m from $6m in 2008.

Sales from the firm’s Linux Platform Products group were up 25 per cent to $37m, with a small increase also shown in identity, access and compliance management software, up two per cent to $28m. Revenue fell from systems and resource management software, and workgroup products.

“While total invoicing declined, in line with global economic trends, I am pleased with the continued expansion of our operating margin,” said Novell chief executive Ron Hovsepian.

“Within our portfolio, our growth businesses – Linux, identity and systems and resource management – have strong prospects and continue to show promise. Our Linux and identity businesses have the greatest potential to continue to expand operating margins, and we plan to attain profitability within these businesses no later than 12-18 months from today, barring unforeseen circumstances.”