First fiscal quarter of 2010 results included a $5m change in accounting estimate related to fiscal 2009 sales compensation that increased profitability in the first fiscal quarter of 2010. The benefit was more than offset by a $6m negative impact to income from operations from foreign currency exchange rates compared to the same period last year. Foreign currency exchange rates favourably impacted net revenue by $1m.
Ron Hovsepian, president and CEO of Novell, said: We are pleased with the invoicing recovery in our security, management and operating platforms business unit as well as our solid operating margin performance this quarter.”
Novell expects net revenues for the second fiscal quarter of 2010 to be similar to first fiscal quarter revenue levels. Non-GAAP operating margin is expected to be between 12% and 15%.