Novell, Inc. announced financial results for its first fiscal quarter ended January 31, 2010. For the quarter, Novell reported net revenue of $202 million. This compares to net revenue of $215 million for the first fiscal quarter of 2009. GAAP income from operations for the first fiscal quarter of 2010 was $21 million. This compares to GAAP income from operations of $14 million for the first fiscal quarter of 2009. GAAP net income in the first fiscal quarter of 2010 was $20 million, or $0.06 per share. This compares to GAAP net income of $11 million, or $0.03 per share, for the first fiscal quarter of 2009. First fiscal quarter of 2010 results included a $5 million change in accounting estimate related to fiscal 2009 sales compensation that increased profitability in the first fiscal quarter of 2010. This benefit was more than offset by a $6 million negative impact to income from operations from foreign currency exchange rates
compared to the same period last year. Foreign currency exchange rates favorably impacted net revenue by $1 million.
On a non-GAAP basis, income from operations for the first fiscal quarter of 2010 was $33 million. This compares to non-GAAP income from operations of $34 million in the same period last year. Non-GAAP net income for the first fiscal quarter of 2010 was $25 million, or $0.07 per share. This compares to non-GAAP net income of $24 million, or $0.07 per share, for the first fiscal quarter of 2009. A reconciliation of GAAP to non-GAAP results is provided in the financial schedules as part of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
“We are pleased with the invoicing recovery in our Security, Management and Operating Platforms business unit as well as our solid operating margin performance this quarter,” said Ron Hovsepian, President and CEO of Novell.
Cash, cash equivalents and short-term investments were $991 million at January 31, 2010, up from $983 million last quarter. Days sales outstanding in accounts receivable was 50 days at the end of the first fiscal quarter of 2010, up from 46 days at the end of the year-ago quarter. Total deferred revenue was $646 million at the end of the first fiscal quarter of 2010, down from $705 million at the end of the year-ago quarter. For the first fiscal quarter of 2010, cash flow from operations was $5 million. This compares to cash flow from operations of $13 million for the first fiscal quarter of 2009, which included a $25 million payment from Microsoft.
