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Novell loses money

by on14 December 2007


But Linux revenue up 69 percent

says that it will take a loss next year, thanks to its restructuring program. However, the U.S. company said that the money it makes from its Linux products has increased by 69 percent. The company warned that its restructuring costs may be $70 million, up from $25 to $35 million. It has also lost $17.9 million.

However, there are signs that the company is slowly turning itself around with revenue increasing by five per cent and good profits coming from its Linux sales.

According to CNET, Novell is working to cut its costs. Once a mainstream networking company, it still has large amounts of expenditure propping up parts of the company it does not need anymore. This is where the restructuring is coming in.

In the short term it means that the company will suffer a bit, but in the longer term it may make most of its money off its Linux business and compete with Red Hat.

More here.
Last modified on 15 December 2007
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