Novell cuts fiscal 3rd-quarter outlook, now expects up to $199 million in revenueBy AP
Monday, August 9, 2010
Novell lowers fiscal 3rd-quarter outlook
WALTHAM, Mass. — Networking software maker Novell Inc. on Monday cut its fiscal third-quarter revenue outlook, saying customer jitters over the company’s possible sale are hurting sales.
Novell now expects revenue of $197 million to $199 million for the three months that ended July 31. The company previously predicted revenue of $205 million to $210 million, and analysts polled by Thomson Financial have been expecting $207.1 million in revenue, on average.
Novell said the revision stems from the negative effect that customer uncertainty is having on sales. The company has been considering various corporate alternatives, including a joint venture or possible sale. In March Novell rejected a $2 billion takeover offer from private equity firm Elliott Associates LP, calling the bid “inadequate.”
Novell shares fell 16 cents, or 2.7 percent, to $5.85 in after-hours trading. The stock had finished regular trading down 7 cents at $6.01.