Novell posts higher 2nd-quarter profit but revenue slides

Novell posts higher 2Q profit but revenue slides

WALTHAM, Mass. — Networking software maker Novell Inc. said Thursday its fiscal second-quarter profit climbed, helped by lower operating costs even as revenue declined.

For the three months ended April 30, the company earned $19.9 million, or 6 cents per share, up 28 percent from $15.6 million, or 5 cents per share, in the same period a year earlier.

The company had more outstanding shares in the latest quarter, which lowers per-share results.

Excluding items, Novell earned 7 cents per share.

Revenue fell 5 percent to $204 million from $215.6 million.

Analysts, on average, were expecting a profit of 7 cents per share, excluding items, on revenue of $204.9 million, according to a poll by Thomson Reuters.

Operating costs fell 7 percent to $142.8 million.

The company forecast revenue of $205 million and $210 million for the current quarter. Analysts are predicting $210.1 million.

Shares slid 3 cents to $5.87 in after-hours trading. The stock had closed up 9 cents at $5.90.