Novell Swings to a Loss

Shares fall in late trading after the company misses estimates.
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Novell (NOVL) swung to a second-quarter loss, as its top and bottom lines fell short of analysts' estimates.

The software maker said after the bell Wednesday that it lost $15.6 million, or 4 cents a share, on revenue of $297.1 million.

A year ago, the company earned $10.4 million but posted a loss per share of 4 cents after a preferred dividend payout of $25.7 million. Revenue was $293.6 million in the year-ago quarter.

Excluding items in the current quarter, the company earned $1 million, or break-even EPS, in the current quarter. Analysts had been looking for the company to earn 3 cents a share before items on revenue of $301.9 million.

After the report, shares of Novell fell 33 cents to $5.95 in after-hours trading.

"Our results this quarter reflect the significant investments we are making to reposition Novell," said Jack Messman, chairman and CEO of Novell. "I am confident that these investments will lead to increased customer acceptance of our solid solution offerings in the Linux and identity-driven computing segments."