Novell Beats Earnings Estimates

Novell ( NOVL) edged past Wall Street's earnings estimates for the third quarter, saying it benefited from better than expected business in Europe and several large licenses in North America.

The software and services company earned $9.9 million, or 3 cents a share in the quarter ended July 31, compared with a loss of $19.3 million, or 6 cents a share, in the same period a year ago. Excluding a charge in the latest quarter, Novell earned 4 cents. Revenue rose to $282 million from $249 million.

Analysts polled by First Call were looking for net income of 2 cents from Novell.

For the fourth fiscal quarter, Novell's results will include additional revenue and costs associated with its recent acquisition of SilverStream acquisition. The company expects total revenue to rise about $10 million from the the third quarter. But because of added costs associated with SilverStream, earnings could be down slightly.

Shares of Novell ended regular trading at $2.09, down 9 cents, or 4%. In after-hours Instinet action, the stock rose 12% to $2.35.

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