Earnings Preview: Novell

Dec. 3.08 | About: Novell, Inc. (NOVL)

Novell (NASDAQ:NOVL) is expected to report Q4 earnings after market close Thursday, December 4, with a conference call scheduled for 5:00 pm ET.

Guidance

The consensus estimate is 6c for EPS and $249.78M for revenue, according to First Call. While the networking specialist may not be the bellwether titan it used to be, Novell has always managed to remain profitable. On the Q3 conference call where Novell reported solid results, management provided guidance for the full FY08 of revenue between $940M and $970M. Also, the non-GAAP operating margin is expected to be between 8% and 10%, for full FY08. With regard to the Company's previously announced share repurchase program, Novell repurchased 7M shares last quarter, and has $42M remaining under the existing share repurchase program. During the quarter, on Oct. 14, Novell announced a definitive agreement to acquire the business service management leader Managed Objects.

Investors will look for more details on the purchase on the earnings call. Other key issues for the conference call: Forward guidance, update on the shares repurchase plan, and commentary regarding IT budgets and partnerships within the networking space.

Next Event: Novell BrainShare 2009, the IT industry's premier technical conference, on March 8-13 2009.