Novell’s Profit Beats Forecasts in 4th Quarter

Novell Inc.’s fiscal fourth-quarter profit rose more than fivefold, beating forecasts, as the maker of software to run computer networks saw strong sales of its newest products, especially Internet-based software. Net income for the quarter ended Oct. 31 rose to $42 million, or 12 cents a share, 3 cents more than the average estimate of 9 cents, from $7.17 million, or 2 cents, in the year-earlier period. Revenue rose 11% to $297.6 million. It was Novell’s second consecutive quarterly sales increase after more than a year of falling revenue. The company, which struggled as Microsoft Corp. moved into the market for network-management software, has bolstered revenue by shifting its focus to Internet-based products. Novell’s new version of its NDS software to control data on networks is boosting sales, and three Internet-equipment makers recently said they’ll make their gear compatible with NDS. Novell, based in Provo, Utah, fell 63 cents to close at $17.38 on Nasdaq. The company reported results after the close of regular U.S. trading.