Novell posts 3Q loss on auction-rate securities

Novell lost $15 million, or 4 cents per share, in the fiscal third quarter ended July 31, compared with a loss of $4 million, or 1 cent per share, in the same quarter a year ago.

Revenue was $245 million, up 3.5 percent from a year ago.

Excluding discontinued operations and a $15 million impairment charge related to auction-rate securities, operating earnings were $21 million, or 6 cents per share. Analysts polled by Thomson Reuters had on average expected earnings of 5 cents per share on that basis, and revenue of $241.4 million.

The weak dollar boosted revenue by $7 million the company said, but also increased expenses by $7 million, and did not affect earnings.

The market for auction-rate securities, a form of corporate debt, collapsed in February amid the downturn in the broader credit markets, and writedowns to their value have shown up in the earnings reports of many companies recently.

In extended trading, after the release of the results, shares of the Waltham-based company added 9 cents to $6.10.