NOVL Novell beats by $0.02, ex items; guides below consensus; announces voluntary stock-based compensation review (6.78 -0.02)
Reports Q3 (Jul) earnings of $0.05 per share, excluding non-recurring items, $0.02 better than the Reuters Estimates consensus of $0.03; revenues fell 4.5% year/year to $241 mln vs the $242.4 mln consensus. Co issues downside guidance for Q4, sees EPS of $0.04 vs. $0.05 consensus; sees Q4 revs of $246-256 mln vs. $259.00 mln consensus. Novell initiated the voluntary review of historical stock-based compensation practices and the related potential accounting impact in light of news about the stock option practices of numerous companies across several industries. Based on preliminary findings, the Audit Committee of Novell's Board of Directors engaged independent outside legal counsel to conduct the review. The Audit Committee is working to complete the stock-based compensation review in a timely manner, and Novell intends to file its Quarterly Report on Form 10-Q for the period ended July 31, 2006 as soon as practicable after the Audit Committee's review is concluded. At this time, Novell is not in a position to predict when the stock-based compensation review will be completed and it is possible that Novell may not file its Quarterly Report on Form 10-Q for the third fiscal quarter ended July 31, 2006 on a timely basis