Novell (NOVL) was down 7.6% in preopen Island trading. After the close Tuesday, the business software maker posted a second-quarter loss of 3 cents per share excluding a charge, below the Street's estimates of a profit of 2 to 4 cents.

The company, which is changing its focus to consulting and Internet services, said it will cut 5% of its workforce in a bid to become profitable by the end of the year.