Novell post profits but future looks disappointing

Linux major Novell has posted disappointing quarterly results as they suffered from weak sales of older products and offerings.

The company added that they are going to restructure next year. Novell did manage to post a profit recovering from losses last year. The revenue was however down 15 percent to $244.9 million.

They had already said that they would not be able to meet the market expectations, which had predicted them to generate revenues of $251.5 million.

Novell also now plan to boost spending on product development and make changes to its sales force.

Novell Chief Financial Officer Dana Russell said in a statement that they expect to book about $20 million in 2007 revenue from a sales partnership with software giants Microsoft.

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