Novell Inc chief financial officer Jim Tolonen said that its Wordperfect Corp needs to show a profit of around 6% after taxes to contribute to earnings: Wordperfect, for the shares used to acquire it, does not have to be on a percentage basis as profitable as Novell, he told the conference, adding that WordPerfect has been only about 3% profitable although he expects it to make progress in the current quarter – At their run rate and their revenue size, to get an earnings contribution that is additive to Novell on an earnings per share basis they only need to be somewhere between five and 10 per cent profit to be additive, Tolonen explained later.
