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Novell beats estimates
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August 16, 2000: 4:39 p.m. ET
Software maker's net aided by $31 million non-operating income
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NEW YORK (CNNfn) - Beleaguered networking software company Novell reported third quarter earnings that were slightly ahead of analyst estimates, although the company's results were boosted by $31 million of non-operating income.
Provo, Utah based Novell (NOVL: Research, Estimates) reported that its third quarter net income plunged 83 percent to $8.57 million from $49.3 million in the same period last year. Earnings per share dropped to 3 cents from 14 cents. Analysts had expected the company to earn 2 cents per share, according to the earnings estimate tracker First Call.
Not including the $31 million of non-operating income, Novell reported an $18.9 million loss from operations, versus an operating profit of $62.4 million in the third quarter of 1999.
Third quarter revenue dropped 17 percent to $270 million from $327 million in the same period last year.
"Although we met our total revenue and earnings objectives for the third quarter, we are nonetheless disappointed by continued weakness of packaged software sales globally, and especially our poor performance in Europe," said Novell chairman and CEO Eric Schmidt, in a news release. "The quarter was impacted by difficult changes intended to improve Novell's business."
"In late May we said it would take upwards of nine months to address the issues in our business," Schmidt continued. "In the fourth quarter we will take additional action to ensure our expenses are in line with revenue. Our revenue run rate will enable us to do this without impacting investments in our key opportunities."
The company also announced that its board of directors had authorized the repurchase of up to $500 million of the company's common stock in open market transactions.
Novell's stock has plunged to 11 recently from a 52-week high of 44-9/16. 
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