Novell Forced to Lower Q3 Sales Forecast
Linux distributor Novell has revised the sales forecast for its third fiscal quarter of 2010, which ended on the 31st of July. The company had originally said that it expected to report a net revenue of $205 to $210 million. It now says that this number is likely to fall in the range of $197 to $199 million. The vendor also notes that its Non-GAAP operating margin, initially expected to be approximately 15%, is likely to be slightly lower and will range between 13% and 15%.
According to Novell's statement, the revised guidance "reflects what the company believes is customer uncertainty associated with the Novell Board of Directors' ongoing review of various alternatives to enhance stockholder value as described in Novell's March 20, 2010 press release." At that time, Novell had rejected Elliott Associates' unsolicited bid for the company, which was valued at approximately two billion dollars. After rejecting the bid, the Novell board announced plans to explore various alternatives to increase the company's share price.
The company plans to publish its complete third quarter of fiscal 2010 financial results on the 26th of August, 2010. A conference call to review the results will begin at 5:00 p.m. ET on the same day and will be available online as a listen-only webcast.
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