Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Novell Pockets Some Cash: Fool by Numbers

On March 1, software maker Novell (Nasdaq: NOVL  ) released first-quarter earnings for the period ended Jan. 31.

  • You might wonder what's up with the massive cash-flow surge in this quarter. It's simply the entire anticipated gain of about $348 million from the Microsoft (Nasdaq: MSFT  ) cross-licensing, support, and co-marketing deal that got tagged as deferred revenue, and thus made it onto the cash flow sheet.
  • The product mix continues to shift away from the aging NetWare cash cow and onto the SUSE Linux platform. The faster, the better, if you ask me. That segment grew revenues by 46% over last year, but it's still small, with just $15 million of sales. Rival Linux vendor Red Hat (NYSE: RHT  ) , for example, brought in $106 million of essentially all-Linux sales in its latest reported quarter.
  • Management says that GAAP profitability is in sight and has set a 5% to 7% operating margin target for the fourth quarter.
  • It seems that Unix-like platforms don't impress our Motley Fool CAPS players very much. Novell is a one-star stock in that database, while most of its platform competition, including Red Hat, Sun Microsystems (Nasdaq: SUNW  ) , and IBM (NYSE: IBM  ) , carries two stars each. Hewlett-Packard (NYSE: HPQ  ) , which just released a new version of its HP-UX operating system, owns a third star, but then again, HP and IBM do much more than just Unix systems.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006






Net Profit








Diluted Shares




Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q1 2007

Q1 2006


Cash + ST Invest.




Accounts Rec.





Q1 2007

Q1 2006


Accounts Payable




Long-Term Debt




Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006


Cash From Ops.




Capital Expenditures




Free Cash Flow




Owner Earnings




Find out why Fools always follow the money.

Related Foolishness:

Microsoft is a Motley Fool Inside Value pick. Find out why with a free 30-day trial at your side.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check for more of our in-depth discussion of what the numbers mean.

At the time of publication, Anders Bylund had no position in any company mentioned, and he prefers the community-supported Ubunty and Debian GNU/Linux flavors. Fool rules are here.

Read/Post Comments (0) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 523008, ~/Articles/ArticleHandler.aspx, 10/23/2016 9:44:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/27/2011 4:00 PM
NOVL.DL $6.10 Down +0.00 +0.00%
Novell, Inc. CAPS Rating: **
HPQ $13.80 Down -0.30 -2.13%
HP CAPS Rating: ***
IBM $149.63 Down -1.89 -1.25%
IBM CAPS Rating: ****
MSFT $59.66 Up +2.41 +4.21%
Microsoft CAPS Rating: ****