Novell Swings to Profit
Updated from 4:32 p.m. EST
SAN FRANCISCO --
Novell's
(NOVL)
swung to a second-quarter profit Thurday, beating analysts' estimates.
Revenue at the Waltham, Mass., software company grew 1.4% to $235.7 million from $232.4 million in the same quarter of last year. Analysts polled by Thomson Reuters were expecting a top line of $233.3 million.
The bottom line moved to a profit of $5.9 million, or 2 cents a share, from a loss of $2.9 million, or a penny a share, in the year-ago period.
Excluding special items, EPS was 6 cents, a penny better than analysts' expectations.
Shares were up 9 cents, or 1.3%, to $6.80 in extended trading.
While revenue from licenses, maintenance and subscriptions rose, services revenue fell 19% to $41.1 million.
Gross margin was 74%, vs. 72% one year ago. Total deferred revenue at the end of the quarter was flat year over year, at $702 million.
Exchange rates added $8 million to revenue and $9 million to expenses, hurting income from operations by $1 million year over year, the company reported.
The company provides open-source software, competing against
Red Hat
(RHT) - Get Report
, which is expected to report in June on its fiscal first quarter. Novell both partners with and competes against
Microsoft
(MSFT) - Get Report
.