Net income for the quarter ended Jan. 31 rose to $44.8 million, or 13 cents a share, from $28.9 million, or 8 cents a share in the year-earlier period, matching the average estimate of analysts polled by First Call/Thomson Financial. Revenue rose to $316 million from $285.8 million
The Provo, Utah-based company has benefited from the delay in the release of Microsoft's Windows 2000 software, which includes an Active Directory feature that will compete with Novell's NDS directory, analysts said. The company is also starting to see purchases from companies that may have delayed buying NDS because of concerns over year 2000 bugs.
Martin Pyykkonen, an analyst at CIBC World Markets, rates Novell a "strong buy."
Directory services software, Novell's main product line, allows computer network managers to determine which files, software applications and devices that individual users can gain access to and use. Novell's directory service software accounts for about 50 percent of Novell's annual revenue.
Play video
There are currently no comments for this post.