Tuesday, August 29, 2006

Novell Reports Results, Starts Stock Options Probe

Novell is the latest firm to be drawn into the widespread industry scandal over stock options grants, saying Tuesday that it has initiated a voluntary review of its historical stock-based compensation practices. The firm has engaged independent legal counsel to conduct the review. The news came as Novell reported preliminary financial results for its third quarter, which ended July 31st. Novell said that it had revenues of $241M, which was down from $252M in the similar period last year. The firm said that it had growth in Linux platform products, identity and access management, but reported a 19 percent decline in its Open Enterprise Server and NetWare related products. Novell did not release its final numbers due to the stock-based compensation review, saying it may not be able to file the quarterly report on time.