Flummoxed by the Internet, head of Novell resigns
Article Abstract:
Novell Pres, Chmn and CEO Robert J. Frankenberg is stepping down. He will be temporarily replaced as chairman by former HP CEO John Young while the company conducts a search for a new CEO. Joseph A. Marengi, the former executive VP of worldwide sales for Novell, will serve as president. Frankenberg was personally selected as his successor by Raymond Noorda and assumed the position of CEO on Apr 5, 1994. Novell continues to hold a 60 percent share of the network operating system market, but has not competed against Microsoft and Netscape in the Internet software market. Novell's board has reportedly grown frustrated with the company's inertia under Frankenberg's leadership. Personal factors also contributed to his resignation. Novell introduced Intranetware, its first Internet product, in mid-Aug 1996, but reported a 42 percent reduction in profits and 32 percent lower revenues for its 3rd qtr, in comparison to the 3rd qtr 1995.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Novell's $121 million loss exceeds analysts' estimates
Article Abstract:
Novell announced revenue losses of $121.6 million, or 35 cents a share, for the fiscal third quarter 1997 ending July 31. The loss, which surpassed analysts' projections, compares to third-quarter 1996 earnings of $58.8 million, or 17 cents a share. Included in the 1997 loss was a $55 million restructuring charge, and the company said it would lay off 1,000 employees. Novell blamed the loss on sharply lower computer networking software shipments to distributors and dealers, in an attempt to reduce resellers' large inventories. Novell, with more than 25,000 reseller worldwide, instead focused almost entirely on direct deals with corporations. Novel chmn and CEO Eric Schmidt characterized the third quarter 1997 as an aberration. Schmidt also predicted that new products will drive up Novell's revenue through the end of 1997.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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