Novell (NASDAQ:NOVL) shares are down sharply in after hours trading Thursday on a weaker-than-expected outlook for the fiscal year ending October 2008.
For the FY 2007 fourth quarter, the company reported revenue of $245 million and non-GAAP EPS of 6 cents; the Street had expected $242.2 million and 4 cents. The problem was the guidance: Novell sees ‘08 revenue of $920 million to $945 million; the Street has been looking for $982.2 million. Or to look at it another way, at the mid-point of the range, the company sees zero growth from the FY ‘07 level of $932 million, whereas the Street has been looking for 5% growth.
After hours, Novell is down 60 cents, or 8.5%, at $6.50.