Novell posts another loss

We're getting better though...

We're getting better though...

Networking manufacturer Novell has reported yet another quarterly loss but claimed it will return to profitability during its third quarter. Novell recorded a second quarter net loss of $173.5m, or 48 cents per share, compared to a loss of $151.3m, or 48 cents per share, during the same period last year. The business predicts it can maintain current revenues of $275m through to the next quarter, which would just take it into profitability. Revenues for the quarter the year before were $241m. Mike Thompson, principal research analyst at Butler Group, said: "Given the current economic climate, the fact that this company has actually increased its revenues by around 15 per cent since this time last year is not a bad result." Novell recorded $190m in pre-tax charges for the quarter, of which $19m was down to restructuring and the rest due to goodwill and impaired investment write-downs. Novell is currently attempting to transfer the company's focus from a product-centric approach to a solution-centric one. Thompson added: "At the moment Novell is in a bit of a hiatus because of its business change-around. Over the last six months it has also rationalised its product set because there was some crossover and it was difficult for users to know what to implement for which problem. That is now helping Novell in the market place."